Case Law Details
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.
The Department supported the order of the CIT (Exemptions).
The Tribunal examined the amended objects of the society and noted that they included teaching and propagation of Vedas and ancient Aryan lore, teaching ancient Indian Shastras, establishing Sanskrit Pathashalas, traditional schools and colleges, libraries, yoga training centres, welfare activities, and carrying out activities for the benefit of all citizens without discrimination.
The Tribunal observed that the CIT (Exemptions) had himself granted approval under Section 80G(5) for subsequent assessment years on the basis of the same objects. It also referred to the decisions of the Bengaluru Bench in Sri Ashvalayana Vrunda and Shri Shruthiparampara Gurukulam, where trusts carrying on similar activities were held to be engaged in charitable rather than religious activities. The Tribunal noted that in Shri Shruthiparampara Gurukulam, the Coordinate Bench had observed that Vedic scholars were identified and felicitated irrespective of caste, creed or religion, financial assistance was provided irrespective of caste, creed or religion, and that Vedas were described as a treasure house of knowledge and recognised by UNESCO as part of the Intangible Cultural Heritage. On that basis, the Bengaluru Bench had granted registration under Section 12A and approval under Section 80G(5).
Following the Coordinate Bench decisions and considering that the assessee had already been granted Section 80G approval for later years on the same objects, the Tribunal found no merit in the findings of the CIT (Exemptions). It reversed the impugned order, allowed the grounds of appeal, directed the CIT (Exemptions) to restore the provisional approval granted on 26.10.2022, and to grant regular approval under Section 80G(5). The appeal was accordingly allowed.
Cases Discussed
- Sri Ashvalayana Vrunda, ITA Nos.1084-1085/Bang/2022, order dated 09.01.2023
- Shri Shruthiparampara Gurukulam Vs. ITO, ITA Nos.1082 & 1083/Bang/2022, order dated 09.01.2023
FULL TEXT OF THE ORDER OF ITAT PANAJI
The captioned appeal at the instance of assessee is directed against the order dated 24.04.2024 framed by CIT(Exemptions), Bangalore denying grant of approval u/s.80G(5) of the Income Tax Act, 1961 (in short ‘the Act’).
2. Assessee has raised following grounds of appeal :
“1. That the order u/s 80G of the Act passed by Ld. PCIT is bad in law and is passed in contravention of prevailing law as well as facts of the case, therefore liable to be annulled.
2. That the Ld. PCIT grossly erred in law in facts of the case in denying approval u/s 80G of the Act by holding that Vedas are religious scriptures, therefore the assessee was engaged in imparting the knowledge of Hindu scriptures.
3. That under the facts of the case and prevailing law, the Ld. PCIT grossly erred in law and facts of the case in holding the assessee is engaged in religious activity and the purpose of the trust is religious in nature and thus not engaged for charitable purpose in view of explanation 3 to section 80G of the Income Tax Act.
4. That the Ld. Principal CIT has acted against the law while rejecting the application for approval u/s 80G in ignoring the settled law by various case law including that of Supreme Court that Hindusim is not a religion but a way of life.
5. That the PCIT was not correct in ignoring the Sanskrit meaning of Vedas which means ‘Knowledge”.
6. That the appellant craves leave to add, alter, amend or withdraw any or all grounds of appeal at any time before and during the course of hearing.”
3. Brief facts of the case are that the assessee is a society registered under the Societies Registration Act on 27.03.2017 formed mainly for working in the area of oriental studies with the objective of teaching ancient Indian Shastras, foster respect for cow protection, to provide Sanskrit Pathashalas of residential and Gurukul type, to establish and maintain libraries, reading rooms, to establish a training centre for Yoga etc. Regular registration u/s.12A of the Act granted on 23.09.2021 for A.Y. 2022-23 to A.Y. 2026-27 upto 26.10.2027. Provisional approval u/s.80G granted on Form 10AC on 26.10.2022 for A.Y. 2025-26. Thereafter, the assessee filed application for regular approval u/s.80G(5) of the Act on Form No.10AB on 25.10.2023. Various details called for by ld. CIT (Exemptions) were filed. However, ld.CIT(Exemptions) rejected the assessee’s application observing that the assessee is engaged in religious activity and that the assessees main object is running traditional Pathashala wherein students learn Sanskrit, Ved Vidya etc. Ld. CIT(Exemptions) has discussed about whether teaching of Veda Vidya would fall under religious activity and then has referred to certain judicial precedents. Ld.CIT (Exemptions) also took note of the decision of Coordinate Bench, Bangalore decided against the Department in the case of Sri Ashvalayana Vrunda in ITA No.1084/Bang/2022 and Shri Shruthiparampara Gurukulam in ITA No.1082/Bang/2022 orders dated 09.01.2023. However, ld.CIT (Exemptions) has not followed these decisions of Coordinate Bench, Bangalore because they have been challenged before the Hon’ble High Court of Karnataka and the judgment is pending as on the date of passing of impugned order. Ld.CIT (Exemptions) accordingly rejected the assessee’s application for regular approval u/s.80G(5) of the Act and also cancelled the provisional approval u/s.80G of the Act dated 26.10.2022.
4. Aggrieved assessee is now in appeal before this Tribunal.
5. Ld. Counsel for the assessee at the outset submitted that the approval u/s.80G of the Act has been granted to the assessee for A.Y. 2027-28 to A.Y. 2031-32 which is placed at pages 209 to 211 of the paper book and that the said approval has been granted u/s.80G with the very same objects which were there before ld.CIT(Exemptions) in the application filed u/s.80G(5) of the Act on 25.10.2023. He further submitted that the objects of the assessee society are charitable in nature and are mainly to impart education and that under similar set of facts and circumstances Coordinate Bench, Bangalore in the case of Sri Ashvalayana Vrunda in ITA Nos.1084-1085/Bang/2022 and dated 09.01.2023 decided against the Department and has also held that recitation and pronunciation of Vedas is like teaching any other Sanskrit literature and such teaching of Vedas does not involve offering worship and prayer to God and therefore the activity of imparting education and teaching of Vedas and foundation of Aryan Lores is a charitable activity and therefore rightly got approval u/s.80G(5) of the Act.
6. Ld. DR supported the order of ld.CIT (Exemptions).
7. We have heard the rival contentions and perused the record placed before us. We observe that the assessee is a society and registered under the Societies Registration Act on 27.03.2017 formed with the main objects which were subsequently amended on 28.12.2020 and further some objects were substituted and approved by the Registrar on 15.03.2024 and the aims and objects of the assessee society are as under :
“4) AIMS AND OBJECTIVES (as amended and approved as on 15.3.24):-
(a) “To achieve, to protect and to propagate teaching and study of Vedas and ancient aryan lores’
(b) To acquaint Society with the exact knowledge of the philosophy and principles of the Vedic Studies;
(i) To undertake welfare activities for the public at large
(c) To provide for the teaching of ancient Indian Shastras and to propagate the system of the said Shastras in the Society, and to foster respect and admiration thereof,
(d) To foster respect for cow protection and to establish and maintain Goshalas,
(e) To provide Sanskrit Pathashalas of residential or Gurukul type;
(f) To establish Traditional Pathashalas, Schools and Colleges to provide ancient traditional and modern education;
(g) To spread and propagate above Knowledge for benefit of in society in respective of cast. creed and religion. By various means such as lectures, debates writing newspapers, magazines discourse
(h) To conduct examinations in the studies of Sanskrit and Vedas and ancient Aryan lore, and confer diplomas or degrees or award certificates or prizes to them;
(i) To establish and maintain libraries, reading rooms, etc;
(j) To do all things which are essential and necessary for the uplift of students taking education in the Schools attached to the Society.
(k) To provide for teaching and guidance of different Indian forms of performing arts like Music.
(l) To establish a training centre for Yoga.
(m) To establish a botanical garden of religious and medicinal trees.
(i) To carry Its activities for the benefits of all citizens of India on the basis of equality, without any discrimination & irrespective of any differences on the bases of caste, creed, religion, language, sex, place etc.
(n) To undertake any other activity consistent with the above objectives.
(m) This organization shall work purely on social basis and shall not work as profit making or commercial organization.”
8. We note that considering the very same objects, ld.CIT (Exemptions) has granted the approval u/s.80G(5) of the Act to the assessee for A.Y. 2027-28 to A.Y. 2031-32 vide order dated 19.03.2026. Assessee has also got registration u/s.12A of the Act for A.Y. 2022-23 to A.Y. 2026-27. We have carefully gone through the decisions relied upon by ld. Counsel for the assessee. We find in the case of Sri Ashvalayana Vrunda (supra) decided by the Coordinate Bench, Bangalore also, the respective assesses were carrying out the very same activity as that of the present assessee and has held that activity of the respective assesses are charitable in nature and not religious in nature. In the case of Shri Shruthiparampara Gurukulam Vs. ITO – ITA Nos. 1082 & 1083/Bang/2022 order dated 09.01.2023 Coordinate Bench, Bangalore has held that Vedic scholars were identified and felicitated irrespective of their caste, creed or religion. The trust is giving financial assistance to various people irrespective of caste, creed or religion involved in Indian heritage Education. It has also been observed that Vedas are unique in its purity and sanctity. The text of Vedas are preserved in its pure and original form without any alteration or interpolation even after thousands of years. The Vedas are the unadulterated treasure house of true knowledge. So much so that even UNESCO declared it as part of the Intangible cultural heritage in their true form up till now. Therefore, it cannot be said that Veda is confined to particular set of people belonging to a particular religion and thus Vedas are for the spiritual upliftment of the mankind. Based on these observations, Coordinate Bench, Bangalore allowed the registration u/s.12A as well as approval u/s.80G(5) of the Act to the charitable trust.
9. Under these given facts and circumstances and also following the ratio laid down by the Coordinate Bench, Bangalore in the case of Shri Shruthiparampara Gurukulam Vs. ITO (supra) and also observing that ld.CIT(Exemptions) has itself granted approval u/s.80G of the Act to the assessee for A.Y. 2027-28 to A.Y. 2031-32 we fail to find any merit in the finding of ld.CIT(Exemptions) and the same is reversed. Grounds of appeal raised by the assessee are allowed. Ld.CIT(Exemptions) is directed to restore the provisional approval granted on 26.10.2022 and grant regular approval u/s.80G(5) of the Act.
10. In the result, the appeal of the assessee is allowed.
Order pronounced on this 30th day of June, 2026.
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