Controversial yoga guru Baba Ramdev’s Patanjali Yogpeeth has been exempted by the Income Tax Appellate Tribunal(ITAT) from paying tax.
The Delhi bench of the tribunal referred to a 2006 amendment in the I-T Act, according to which yoga was additionally described as having “charitable purpose”.
The tribunal stated that Patanjali Yogpeeth involves providing medical relief and its camps impart education, and since both `medical relief ‘ and `imparting education’ fall within the meaning of charitable purpose it can be granted the I-T exempt status under sections 11 and 12 of the Income Tax Act.
“The finding of I-T authorities that propagation of yoga by Patanjali Yogpeeth does not qualify as medical relief or imparting of education is not justified,” ITAT said in its order.
The tribunal ruled out that donations worth Rs 43.98 crore received by Patanjali Yogpeeth for construction of cottages under its Vanprasth Ashram Scheme were capital receipts not liable to I-T.
“Corpus donations are not taxable, even in circumstances where the trust is not eligible for I-T exemption,” the ITAT order stated.
Patanjali Yogpeeth is a multi crore business entity, which mainly focused in marketing ayurvedic products and yoga. With revenue of $780 million, Patanjali sells everything from herbal toothpastes and cosmetics to noodles and jams.