Prachya Viddya Samvardhan Vs CIT (Exemptions) (ITAT Panaji)
The assessee, a society registered under the Societies Registration Act on 27.03.2017, appealed against the order dated 24.04.2024 of the CIT (Exemptions), Bangalore, rejecting its application for regular approval under Section 80G(5) of the Income-tax Act and cancelling the provisional approval granted on 26.10.2022. The society, registered under Section 12A from AY 2022-23 to AY 2026-27, had objects including teaching Vedas, ancient Indian Shastras, Sanskrit Pathashalas, Gurukul education, libraries, yoga training, performing arts, welfare activities, cow protection, and propagation of knowledge without discrimination based on caste, creed or religion.
The CIT (Exemptions) rejected the application on the ground that the assessee was engaged in religious activities, observing that its principal object was running traditional Pathashalas teaching Sanskrit and Vedic studies. While referring to the Bengaluru Bench decisions in Sri Ashvalayana Vrunda and Shri Shruthiparampara Gurukulam, which had decided similar issues against the Department, the CIT (Exemptions) declined to follow those decisions as appeals against them were pending before the Karnataka High Court.
Before the Tribunal, the assessee submitted that it had subsequently been granted approval under Section 80G for AY 2027-28 to AY 2031-32 by order dated 19.03.2026 on the basis of the same objects. It further contended that its activities were charitable, primarily involving education, and relied on the Bengaluru Bench decisions holding that teaching and recitation of Vedas constituted charitable educational activity and not religious activity.
