TaxTMI 
TaxTMI 
TaxTMI 
2024 (5) TMI 1636
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....is a religious trust. 3. That the learned CIT(E) has failed to consider that Explanation 3 to Section 80G of the Act has to be read with Section 80G(5B) of the Act. 4. That the Appellant craves leave to add to and/or to alter, amend, rescind, modify, the grounds herein above or produce further documents before or at the time of the hearing of this appeal. 3. Brief facts of the case are as follows: The assessee is a Trust formed on 05.04.2013. Certain clauses of the Trust Deed were amended in order to conform to the requirement of Income Tax Act, 1961, vide amendment deed dated 19.02.2015. The Trust was formed with the main object of teaching, imparting and spreading knowledge of vedic education. The assessee at the first instance was granted registration under section 12A r.w.s. 12AA of the Act and approval under section 80G of the Act vide Orders dated 24.02.2015. Thereafter, assessee applied for provisional registration under section 12A of the Act in Form 10A (applicated dated 11.09.2021). The CIT(E) granted registration under section 12A of the Act in Form 10AC (order dated 02.10.2021). Assessee had filed an application for approval under section 80G of ....
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....the Bangalore Bench of the Tribunal in the case of Sri Ashvalayana Vrunda Vs. ITO in ITA Nos.1084, 1085/Bang/2022 (order dated 04.01.2023) and Shrthiparampara Gurukulam Vs. ITO reported in [2023] 150 taxmann.com 125 (Bangalore - Trib.). 5. Learned DR supported the orders of the CIT(E). 6. We have heard the rival submissions and perused the material on record. The assessee trust has been formed to protect, preserve and promote Shrouta Vijnana bestowed by the Vedic Seers. The objects of the Trust as mentioned in the Trust Deed dated 05.04.2013 reads as follows: "1. To start, establish or to do any or all of the following to preserve, promote and propagate the traditional style and purity of various Vedic rituals and recitations. a. Veda Patashalas and Vedic Ritual Training Centers . b. Vedic Research Centres. c. Libraries on the Vedas & the Vedic Rituals d. Publication of periodicals, books, etc. on non-commercial basis to propagate the achievements in research and other activities of the trust. e. Museums, Documentation Centers, and Information Networks. f. Workshops, Seminars, Demonstration - lectures, Competition....
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....in learning of Indian Heritage Education; (i) To financially support the deserving students, teachers and scholars, involved in learning of Indian Heritage Education, for their modern education; (j) To help in building the infrastructure to teach modern education to those pursuing traditional Indian Heritage education; (k) To provide financial scholarship to those pursuing specialization on Heritage studies; (l) To work for the cause of Heritage education, to provide financial assistance for the medical expenses of students, teachers and scholars involved in Indian Heritage Education; (m) To give financial aid to the deserving parents sending their offspring for Heritage studies; (n) To encourage those doing research on the meaning of Vedas for the benefit of all; (o) To create zeal amidst students to excel and pursue deeper and wider into Heritage Education; (p) To support education to all without any barrier of caste, creed and religion as per Indian Law; (q) To work for National Integration, to promote universal brotherhood and to spread harmony among all sections of people of India (r) To ....
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....sons etc. irrespective of caste, creed, religion. The trust has conducted the vedic classes by going to the houses of all interested people irrespective of caste, creed, gender or religion and has taught them the importance of Vedas. During Covid, the trust provided financial assistance to the poor Vedic scholars and distributed food kit, cloths, medicines for the needy. All the expenses to carry out the above charitable objectives are met out of donations received. No fees or honorarium or money is charged by the trust or by any Trustees for conducting the vedic classes, chanting or for any programmes. All trustees work selflessly for achieving the charitable objects of the Trust. 9. The approval by the PCIT under section 80G requires fulfilment of all the conditions laid down in clauses (i) to (v) of section 80G(5). The conditions are as under:- (i) The income of the Trust is not liable to inclusion in its total income under section 11, 12, 10(23AA), 10(23C) as the case may be. (ii) The instrument under which the institution or fund is constituted does not, or the rules governing the institution or fund do not, contain any provision for the transfer or ....
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....ritish authorities while dispensing justice with reference to the inheritance, partition, marriage and other personal laws of the inhabitants of this nation who are not Muslims, Christians, Buddhists, Jains. The British Administrators sought the help of the local English knowing Sanskrit pundits who quoted widely the Vedas and Smritis (collection of precepts handed over by Rishis or sages of antiquity in Sanskrit). ........... A study of the Sanskrit texts in English and the law administered in pursuance of thereof clearly shows that there is no religion by the name 'Hindu'. The word 'Hindu' covers various sects such as ........ If one comprehends the aforesaid facts it will be very difficult to find a Hindu religion having a common faith, and a common founder because Hindu religion takes within its fold not only the four classes of persons viz., Brahmins, Kshatriyas, Vaisyas and Sudras, but also other religions viz., Sikhs, Jains and Buddhists. I am unable to comprehend as to how one religion can have several religions within its fold. It only shows that the so called Hindu religion has been coined for convenience." 12. The Constitution Bench of the Supreme Court....
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....dly in Aashram is one type of meditation and yoga and is a charitable activity under section 2(15) of the I.T. Act. The High Court held that unless it was proved that the above activities was for any particular community or group of persons, it cannot be a ground to reject the registration u/s 12A and approval u/s 80G of the I.T. Act. 14. The Tribunal in Shiv Mandir Devsttan Panch Committee Sanstan v CIT [2012] 27 taxmann.com 100 (Nagpur Trib) referring to the above decisions held that worship of Lord Shiva, Hanumanji, Goddess Durga and maintaining of temple cannot be regarded as for the advancement support or propagation of a particular religion and granted the approval under section 80G of the I.T. Act. The relevant observations from the decision are as under:- "The objects as has been pointed out by CIT, nowhere talks of advancement, support or propagation of a particular religion, worshipping of Lord Shiva, Hanumanji, Goddess Durga and maintaining of temple, in our opinion, cannot be regarded for the advancement support or propagation of a particular religion. No evidence or material was placed on record or brought before us by the learned DR which may prove t....
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....raining centre as well as food for the needy and optical centre for the poor. 13. Explanation 3 to section 80G(v) states that "in this section, "charitable purpose" does not include any purpose the whole or substantially the whole of which is of a religious nature." This explanation takes note of the fact that an institution or fund shall be for a charitable purpose and may have a number of objects. If any one of these objects is wholly or substantially wholly of a religious nature, the Institution or Funds falls outside the scope of section 80G and the donation to it will not make the donor entitled for the deduction u/s. 80G. The objects as per Explanation 3 must be wholly or substantially whole of which must be of religious nature. The assessee has submitted all the evidence including the objects and how the expenditure has been incurred by it. The onus, in our opinion, gets shifted on the Revenue to prove that the assessee-trust is wholly or substantially for the religious purpose. There is no allegation on the part of the revenue that the whole or substantially whole of the object of the trust is to propagate or advance support to a particular sect. We may observe tha....
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.... is no definition of the term 'religious purpose' in the Act. Generally interpreted, it would encompass within its fold all institutions or funds, which are for the advancement, support or propagation of a religion and its tenets. How religion is to be understood in the context of the Act, has been examined in the case of Dawoodi Bhora Jamat (supra). If the benefit of religious endowments too ensures for the benefit of the public, then the religious trusts/endowments too will be entitled to the exemption provided by section 11 of the Act. A religious trust could be 'public' or 'private'. Section 13(1)(a) bars exemption to any private religious trust, which does not enure for the benefit of the public. Section 80G(5)(iii) makes a distinction in cases of institutions or funds, which are for the benefit of any particular religious community or caste - say for Hindus, Muslims, Christians or for Brahmins, etc. Donors to such trusts are debarred from claiming benefit of deduction from income for donations made to such trusts. Conversely, it follows that for donations made to religious bodies, which do not fall in the category mentioned in section 80G(5)(iii), bene....
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.... with the lifestyle of the human beings across the different religions and countries. It gets corroborated from the fact that yoga and self-meditation are being exercised and followed throughout the world by sections of people from different religions and different countries. These activities are thus not confined or attributed to any particular religion and the same, therefore, cannot be regarded as wholly or substantially of a religious nature. Moreover, as per the trust deed, neither the trust nor its funds were expressed to be for the benefit of any particular religious community and as further pointed out by learned counsel for the assessee and remained uncontroverted by the learned Departmental representative, not even a single rupee was spent by the assessee-trust on religious activity." 17. In view of the above judicial pronouncements of the Hon'ble Supreme Court, Hon'ble High Court and various Tribunal (including the Bangalore bench), there is no merit in the impugned finding of the CIT(E) that teaching Vedas is a religious activity and therefore not eligible for approval under section 80G of the I.T. Act. 18. As regards the case law relied on by the CIT(....
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....t case. 20. The ITAT Jaipur in Shiv Ratan Rathi Foundation v CIT [2012] 20 taxmann.com 221 (JP) followed the decision of the Supreme Court in Upper Ganges and held that organising 'Bhagavat Katha' is a religious activity and therefore Trust would not be granted the approval under section 80G. In the present case as explained above, the Supreme Court decision in Upper Ganges is not applicable and also the assessee-Trust does not have any object of organising 'Bhagavat Katha'. It is only teaching how to pronounce and recite the Vedas, a Sanskrit literature. Thus, the above decision is not applicable to the present case. 21. The Hon'ble High Court of Rajasthan in Umaid Charitable Trust v UOI (supra) distinguished the judgment of the Hon'ble Supreme Court in Upper Ganges and held as under:- "33. The learned counsel for the revenue relied upon the decision of the Supreme Court in the case of Upper Ganges Sugar Mills (supra), which has been relied upon by the learned CIT(A) also in the impugned order, it was held on the basis of one particular clause (2)(h) of the trust-deed which read "to establish, maintain and to grant and/or aid to public places of worship ....
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....y the Hon'ble Rajasthan High Court that approval under section 80G cannot be refused if one particular expenditure was made for repair and renovation of Lord Vishnu's temple and that too by way of contribution to another trust. Relevant observations are as under:- "The line of distinction between religious purposes and charitable purposes is very thin and no watertight compartment between the two activities can be established. Unless the objective of the charitable trust in question itself is to spend its income for a particular religion and it is so found in the trust deed, the Income-tax Department cannot reject the renewal of the trust as charitable trust under section 80G of the Income-tax Act, 1961, merely because one particular expenditure is for an activity which may be termed as spending for a particular religion." "A single contribution by the charitable trust to another trust which carried out repair and renovation of Lord Vishnu's temple did not disentitle the petitioner-trust from renewal of its exemption certificate under section 80G. The repair and renovation of the temple did not necessarily mean that the expenditure in question was for a particular....
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....f the world mind, is learning these truths. Wisdom garnered by India, the eldest brother among the nations, is a heritage of all mankind. Vedic truth, as all truth, belongs to the Lord and not to India. The Rishis, whose minds were pure receptacles to receive the divine profundities of the Vedas, were members of the human race, born on this earth to serve humanity as a whole. Distinction by race or nation is meaningless in the realm of truth, where the only qualification is spiritual fitness to receive. The time tested scriptures of the world are one in essence." "Some overlap between the 'religious' and the 'charitable' is inherent in the very definitions of the two concepts, and has to be admitted and respected. Continuing further, we also observe that the activities of the trust are not confined to these activities alone, but is also undertaking purely charitable activities. As apparent from the Object Clause 2(c), (d), (f ), (i), (j) and (k ) of its Trust Deed, as well as the activities undertaken in pursuance of the same, as listed in the 'Note on its activities' (refer PB pgs. 8,9 and 10). In our considered view, therefore, the appell....