ITAT Chennai directs registration under Section 12AB and approval under Section 80G for a trust conducting structured Sanskrit courses, even with nominal fees.
Structured Sanskrit Education Qualifies for 12AB and 80G: ITAT Chennai
The ITAT, Chennai, held that a trust promoting structured Sanskrit education qualifies for registration under Section 12AB and approval under Section 80G, despite charging nominal fees. The tribunal ruled that a small fee does not negate charitable character if surplus is reinvested and services remain accessible.
The revenue argued that charging fees indicated commercial intent. The tribunal rejected this, stating that educational activities under Article 29(1) and religious-cultural propagation are charitable under tax law. It referenced judicial precedents affirming Sanskrit as integral to cultural heritage.
Implication: Educational trusts, especially those promoting classical languages and culture, can now pursue dual tax benefits. The decision expands the scope of 'charitable purpose' under Sections 2(15) and 12AB.
