INCOME TAX ACT, 1961

Section 2(15) Section 11

Charitable trust - Exemption under section 11 - Incurrence of expenses on light and sound show security service charges upgradation of Sh. Krishna Museum, celebration of Geeta Jayanti and land compensation, etc. treated as trade, commerce or business -

Assessee a charitable society having object to undertake overall development of Kurukshetra including its lands renovation of historical places and facilities to pilgrims and tourist, etc., claimed exemption under section 11. AO denied exemption on the ground that incurrence of expenses on light and sound show security service charges upgradation of Sh. Krishna Museum, celebration of Geeta Jayanti and land compensation, etc., were in the nature of trade, commerce or business hence not covered under section 2(15).Held: It is a well acknowledged fact that lessons addressing the spirit of the human desire to live a life of exalted magnificence expounded by Sri Krishna has a following of renowned philosophers, thinkers of different times who have acknowledged the lofty ideas and heavily borrowed therefrom or at times plagiarised the philosophy expounded and incorporated it in their sects/religions and followings. It is not a religious discourse delivered in a temple or at a religious ceremony but at a battlefield, the place of action, it is a life lesson for the spirit starving for excellence and magnificence. This philosophy has caught the attention of enlightened world for generations. The activity of assessee society to keep alive this message for the curious seeker. Through a light and sound show or by maintaining a museum were all relatable activities commensurate with its aims and objects and could by no stretch of imagination be considered to be commercial venture. Mere charging of fees from visitor or receipt of State funds for their upkeep, etc., does not transform the character of a musem to be a commercial venture. Accordingly, AO was not justified in denying exemption under section 11.

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