9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2023 (1) TMI 213 - AT - Income TaxEligibility for approval u/s 80G - some of the objects of the assessee-trust was to teach Veda and spread Vedic education - As concluded by the CIT(E) that the assessee was engaged in religious activities and in view of clause (iii) to section 80G(5), sub-section (5b) of section 80G and Explanation 3 to section 80G assessee s application filed in Form No.10AB for approval u/s 80G of the I.T.Act is to be rejected - CIT(E) granted the benefit of registration u/s 12A of the I.T.Act to the assessee as a religious trust (instead of charitable trust) - HELD THAT - 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. In the present case, assessee Trust does not have any object to establish, maintain and to grant and / or aid to public places of worship and prayer halls and hence the judgment of the Hon ble Apex Court in the case of Upper Ganges Sugar Mills Ltd. 1997 (8) TMI 4 - SUPREME COURT is inapplicable to the facts of the present case. The impugned conclusion of the learned CIT(E) that teaching of Vedas involve offering worship and prayer to God is not correct and bereft of any reason. The assessee only teaches the students how to recite the Vedas. There is a particular method of pronunciation of Vedas with Swaras attached to it. The recitation and pronunciation of Vedas is what is taught by the assessee-Trust. It is like teaching any other Sanskrit literature. The teaching of Vedas does not involve offering worship and prayer to God as held by the CIT(E). There is no object or activity of worship or prayer to God as contended by the CIT(E). The CIT(E) is also not an authority to conclude what teaching of Vedas involve. Hence, the decision of the Supreme Court in Upper Ganges Sugar Mills Ltd v CIT (supra) is not applicable to the facts of the present case. The assessee-trust has carried on other charitable activities in the nature of relief of poor. The Vedic Scholars were identified and felicitated irrespective of their caste, creed or religion. The Trust has given financial assistance to various people, irrespective of caste, creed or religion, involved in Indian Heritage Education. During Covid, many were in financial difficulty and the Trust provided financial assistance and distributed food kit, clothes, medicines for the needy Vedic scholars irrespective of their caste, religion or gender. All the expenses were met out of voluntary contributions or donations. The Income and expenditure account for AY 2021-22 are placed on record, and for AY 2022-23, ledger account for expenses incurred in achieving the objects like donation to veda pathashalas, veda pundits, medical assistance etc and invoices, vouchers, brochures and photos demonstrates the charitable activities carried on by the assessee Trust. Thus the activities carried on by the assessee- Trust are CHARITABLE in the nature of education, relief of poor and not RELIGIOUS as concluded by the CIT(E). In view of the above, the impugned findings of the CIT(E) that the assessee-trust is registered as RELIGIOUS is quashed and the assessee is allowed registration u/s 12A of the I.T.Act as charitable trust. Consequently, the approval u/s 80G of the I.T.Act is to be granted. Appeals filed by the assessee-trust are allowed.
Issues Involved:
1. Eligibility for approval under Section 80G of the Income Tax Act. 2. Classification of the assessee-trust as a religious or charitable trust under Section 12A. Detailed Analysis: 1. Eligibility for Approval under Section 80G of the Income Tax Act: The primary issue is whether the assessee-trust qualifies for approval under Section 80G, which provides tax deductions for donations to certain charitable institutions. The CIT(E) rejected the application for approval under Section 80G, concluding that the assessee-trust was engaged in religious activities, specifically teaching Vedas, which were deemed Hindu religious scriptures. The Tribunal analyzed the trust's objectives and activities and found that the trust's beneficiaries were members of the general public, irrespective of race, religion, caste, community, creed, or gender. The trust's objectives included teaching Vedas, spreading Vedic education, and preserving Indian heritage and culture, among others. The Tribunal emphasized that the term "Veda" means "knowledge" and is derived from the Sanskrit word "vid," meaning "to know." The Vedas contain both spiritual and worldly knowledge and are considered part of the intangible cultural heritage of humanity by UNESCO. The Tribunal referred to several judicial precedents, including the Hon'ble Madras High Court in TT Kuppuswamy Chettiar and others v State of Tamil Nadu, which held that Hinduism is a way of life and not a religion. The Constitution Bench of the Supreme Court in Dr. Ramesh Yeshwant Prabhoo v Shri Prabhakar Kashinath Kunte and Others also indicated that terms like "Hinduism" or "Hindutva" are related more to the way of life of the people in the subcontinent and are not confined merely to describe persons practicing the Hindu religion as a faith. Further, the Tribunal noted that the assessee-trust had not constructed a prayer hall or other place of worship, which are exclusively religious activities. The Tribunal also referred to the Hon'ble Rajasthan High Court in Umaid Charitable Trust v UOI, which distinguished the judgment of the Hon'ble Supreme Court in Upper Ganges Sugar Mills Ltd. v. CIT and held that approval under Section 80G cannot be refused if the trust's dominant objective is charitable. The Tribunal concluded that the teaching of Vedas by the assessee-trust does not involve offering worship and prayer to God, but rather teaching the recitation and pronunciation of Vedas, which is akin to teaching any other Sanskrit literature. Therefore, the Tribunal held that the assessee-trust is eligible for approval under Section 80G of the I.T. Act. 2. Classification of the Assessee-Trust as a Religious or Charitable Trust under Section 12A: The CIT(E) granted registration under Section 12A of the I.T. Act, classifying the assessee-trust as a religious trust rather than a charitable trust. The Tribunal examined whether the activities of the assessee-trust could be considered religious or charitable. The Tribunal referred to various judicial pronouncements, including the Hon'ble Allahabad High Court in CIT v Sri Radha Raman Niwas Trust, which held that activities such as Akhand Naam Sankirtan and sewa puja are charitable activities under Section 2(15) of the I.T. Act, unless it is proven that these activities are for any particular community or group of persons. The Tribunal also cited the decision in Shiv Mandir Devsttan Panch Committee Sanstan v CIT, which held that worship of deities and maintaining temples cannot be regarded as for the advancement of a particular religion and granted approval under Section 80G. The Tribunal observed that the assessee-trust conducted various workshops to disseminate the knowledge of Vedas, invited the general public irrespective of caste, creed, gender, or religion, and provided financial assistance to various people involved in Indian Heritage Education. During the COVID-19 pandemic, the trust provided financial assistance and distributed food kits, clothes, and medicines to needy Vedic scholars irrespective of their caste, religion, or gender. The Tribunal concluded that the activities of the assessee-trust are charitable in nature, focusing on education and relief of the poor, and not religious as concluded by the CIT(E). Consequently, the Tribunal quashed the CIT(E)'s finding that the assessee-trust is a religious trust and directed that the assessee be allowed registration under Section 12A of the I.T. Act as a charitable trust. The Tribunal also directed that approval under Section 80G of the I.T. Act be granted. Conclusion: The Tribunal allowed the appeals filed by the assessee-trust, holding that the trust is eligible for approval under Section 80G and should be registered as a charitable trust under Section 12A of the I.T. Act. The Tribunal emphasized that the teaching of Vedas is a cultural and educational activity rather than a religious one, and the trust's activities benefit the general public irrespective of caste, creed, or religion.
|
