SHRI SHRUTHIPARAMPARA GURUKULAM,BANGALORE vs. ITO, WARD-3, EXEMPTIONS, BANGALORE

Per N. V. Vasudevan, Vice President :

These appeals by the assessee are directed against the final orders of assessment both dated 29.09.2022 of CIT(E), Bangalore, (hereinafter referred to as the Assessing Officer, “AO” in short).

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(a) To protect, preserve, teach, impart and spread the knowledge of VEDAS; (b) To spread vedic education, vedic chanting and its knowledge, to encourage and teach the tradition of Vedic Chanting in India which has been declared and notified by the UNESCO (United Nations Educational, Scientific and Cultural Organization) in the Intangible Cultural Heritage List (Proclaimed in 2003 and Inscribed in 2008); (c) To protect, preserve, teach, spread and encourage the knowledge of Indian heritage and culture contained in various Dharma Granthas, Dharma Shastras, Sutras, Shruti, Smruti, Puranas etc.; (d) To teach, impart and encourage the learning of Sanskrit; (e) To encourage students of studies having Indian Heritage Value; (f) To provide accommodation facility and other amenities required for the well being of students studying Vedic education; (g) To financially support the deserving students, teachers and scholars involved in learning of Indian Heritage Education; (h) To financially support the deserving students, teachers and scholars, involved in learning of Indian Heritage Education, for their modern education; (i) To help in building the infrastructure to teach modern education to those pursuing traditional Indian Heritage education; (j) To provide financial scholarship to those pursuing specialization on Heritage studies; (k) 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;

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(l) To give financial aid to the deserving parents sending their offspring for Heritage studies; (m) To encourage those doing research on the meaning of Vedas for the benefit of all; (n) To create zeal amidst students to excel and pursue deeper and wider into Heritage Education; (o) To work for National Integration, to promote universal brotherhood and to spread harmony among all sections of people of India. 4. The beneficiaries of the Trust are members of general public irrespective of race, religion, caste, community, creed or gender. [para 2.1 of Trust deed]. The assessee applied for the provisional registration under section 12A and 80G for recognition as a Charitable trust on 25.12.2021. Order of provisional registration under section 12A dated 1.1.2022 and order of provisional approval under section 80G dated 1.1.2022 was granted by the PCIT/CIT. The assessee applied for regular registration under section 12A and 80G for recognition as a Charitable trust on 31.3.2022. The ITO, Exemptions, Ward 3, Bangalore vide letter dated 12.7.2022 asked for various details, information and documents. These documents were electronically filed on 30.7.2022 and physically filed on 1.8.2022. The CIT (Exemptions) vide letter dated 14.7.2022 called for various documents and they were electronically filed on 30.7.2022 and physically filed on 1.8.2022. A detailed note on activities of the Trust since inception along with evidences in the form of brochures, photos etc was filed as Annexure 5 to above documents filed with the ITO, Exemptions, Ward 3, Bangalore and CIT (Exemptions) on 30.7.2022 and 1.8.2022. Similarly, explanation as to how the objects and activities of the Trust are covered within the meaning of

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definition of ‘Charitable purpose’ under section 2(15) of the Income tax Act, 1961 (‘the Act’) was filed on Annexure 6 to above documents filed with the ITO, Exemptions, Ward 3, Bangalore and CIT (Exemptions) on 30.7.2022 and 1.8.2022. Note explaining as to how the objects of the assessee are charitable, not religious, with supporting case laws and therefore the assessee is eligible for regular registration under section 12AB and regular approval under section 80G as a Charitable trust was electronically filed on 3.9.2022 and physically filed on 5.9.2022. The learned CIT (Exemptions) heard the matter and passed the order of registration under section 12A(1)(ac)(iii) on 29.9.2022 registering the assessee as RELIGIOUS and not as CHARITABLE for the reasons mentioned in another order dated 29.9.2022 rejecting the application for approval under section 80G.

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money or the donee gives a receipt of donation, based on which the donor is entitled to claim a deduction, provided the donee institution is approved under section 80G of the Income Tax Act’1961. One of the Conditions to be satisfied to get approval under Section 80G (5) is that the Institution should be established in India for Charitable purpose and institution should not be for the benefit of any particular religious community or caste. It was therefore important for the assessee get itself recognized as a “Charitable Institution” rather than “Religious Institution”. In fact, if it is concluded that the assessee is a charitable institution then registration to the assessee u/s.12A of the Act has to be allowed treating the assessee as Charitable Institution and consequently the approval u/s.80G of the Act has also to be allowed. Therefore, the short question that needs to be decided is as to whether the assessee can be regarded as a Charitable Institution or Religious Institution.

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(v) the institution or fund is either constituted as a public charitable trust or is registered under the Societies Registration Act, 1860 (21 of 1860), or under any law corresponding to that Act in force in any part of India or under section 253 of the Companies Act, 1956 (1 of 1956), or is a University established by law, or is any other educational institution recognised by the Government or by a University established by law, or affiliated to any University established by law, or is an institution financed wholly or in part by the Government or a local authority;

Explanation 3 to section 80G states that "charitable purpose" does not include any purpose the whole or substantially the whole of which is of a religious nature.

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who are not Muslims, Christians, Buddhists, Jains. Reference was made to decision of Hon’ble Supreme Court in the case of Dr. Ramesh Yeshwant Prabhoo Vs. Shri Prabhakar Kashinath Kunte and others 1996 AIR 1113 (SC) wherein the Constitutional Bench held that Hindutva is understood as a way of life or a state of mind and it is not to be equated with, or understood as religious Hindu fundamentalism. Reliance was placed on the following decisions, wherein various Benches of ITAT have held that Hinduism is a way of life and cannot be equated with religious institution: Shiv Mandir Devsttan Panch Committee Sanstan Vs. CIT (2012) 27 Taxmann.com 100 (Nagpur Trib). M/s. Sri Channamallikarjuna Trust Committee Gangavathi Vs. CIT(E) ITA No.1829/Bang/2018 order dated 4.5.2022 and Vaidik Bhakti Sadan Asram Vs. CIT (2010) 5 ITR (Trib) 590 (Delhi). The decisions relied upon by the CIT(E) were also distinguished.

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substantially the whole of which is a religious nature’ from charitable purpose is attracted.

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(Para vidya) as well as the knowledge of the world (Apara vidya). Thus, apart from philosophy, we find here descriptions of various aspects of the different subjects such as sciences, medicine, political science, psychology, agriculture, poetry, art, music etc. The Veda is unique in its purity and sanctity. The text of the Veda is preserved in its pure and original form without any alteration or interpolation even after thousands of years. The Veda is the unadulterated treasure house of true knowledge. So much so that even UNESCO declared it as part of the Intangible cultural heritage of humanity. Despite being oldest, the Vedas have been preserved in their true form up till now. Even Max Muller, a renowned European scholar, has admitted that, the text of the Vedas has been handed down to us with such accuracy and care that there is hardly any change in the words, or there is any uncertain aspect in the whole of Vedas. The credit for this goes to Vedic seers (Rishis) who devised means of protecting and preserving the text of Vedas letter by letter, with all their accessories. Vedic mantras have accents (Swara) which preserve its original form of word- construction. It cannot be said that Vedas are confined to a particular set of people or people belonging to a particular religion. It is for spiritual up-liftment of mankind.

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working people, retired persons 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.

“The word ‘Hindu’ itself has not been defined in any of the texts, nor in any of the judge made laws. The definition of a ‘Hindu’ is also not available in the ancient texts. Even the renowned author of the Hindu Law, viz., Mulla has not defined

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the word ‘Hindu’. According to the Concise Oxford Dictionary, ‘Hindu’ means adherent of Hinduism; whereas the Chambers Dictionary defines ‘Hindu’ as a member of any of the races of Hindustan or India, a believer in a form of Brahmanism. A perusal of the history shows that the name ‘Hindu’ was given by the British 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.” 15. The Constitution Bench of the Supreme Court in Dr Ramesh Yeshwant Prabhoo Vs. Shri Prabhakar Kashinath Kunte and Others 1996 AIR 1113 referring to various constitution bench decisions, Encyclopedia of Religion and Ethics, Dictionaries, Encyclopaedia Britannica and Treatise, had held as under.

“These Constitution Bench decisions, after a detailed discussion, indicate that no precise meaning can be ascribed to the terms `Hindu', `Hindutva' and `Hinduism'; and no meaning in the abstract can confine it to the narrow limits of religion

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alone, excluding the content of Indian culture and heritage. It is also indicated that the term `Hindutva' is related more to the way of life of the people in the sub- continent. It is difficult to appreciate how in the face of these decisions the term `Hindutva' or `Hinduism' per se, in the abstract, can be assumed to mean and be equated with narrow fundamentalist Hindu religious bigotry, or be construed to fall within the prohibition in sub-sections (3) and/or (3A) of Section 123 of the R.P. Act.” Ordinarily, Hindutva is understood as a way of life or a state of mind and it is not to be equated with, or understood as religious Hindu fundamentalism. “Thus, it cannot be doubted, particularly in view of the Constitution Bench decisions of this Court that the words `Hinduism' or `Hindutva' are not necessarily to be understood and construed narrowly, confined only to the strict Hindu religious practices unrelated to the culture and ethos of the people of India, depicting the way of life of the Indian people. Unless the context of a speech indicates a contrary meaning or use, in the abstract these terms are indicative more of a way of life of the Indian people and are not confined merely to describe persons practising the Hindu religion as a faith. Considering the terms `Hinduism' or `Hindutva' per se as depicting hostility, enmity or intolerance towards other religious faiths or professing communalism, proceeds form an improper appreciation and perception of the true meaning of these expressions emerging from the detailed discussion in earlier authorities of this Court.” 16. The Hon’ble Allahabad High Court in CIT Vs. Sri Radha Raman Niwas Trust [2014] 42 taxmann.com 77 affirmed the findings of the Tribunal, which held that to carry sewa puja of Sri Giridhari Ji and carry Akhand Naam Sankirtan uninterruptedly 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

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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.

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in judge made law. The word was given by British administrators to inhabitants of India, who were not Christians, Muslims, Parsis or Jews. Hinduism is a way of life. It consists of a number of communities having different gods who are being worshipped in a different manner, different rituals, different ethical codes. The worship of God is not essential for a person who has adopted Hinduism way of life. Therefore, expenses incurred for worshipping of Lord Shiva, Hanuman, Goddess Durga and for maintenance of temple cannot be regarded to be for religious purpose. In holding so, the Tribunal referred to the decisions in the case of Commissioner of Hindu Religious and Charitable Endowments Vs. Sri Lakshmindra Thirtha Swamiar 1954 SCJ 335 & T. T. Kuppuswamy Chettiar Vs. State of Tamil Nadu (1987) 100 LW 1031.

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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), benefit of deduction under section 80G can be claimed. Thus, it could be said that a public religious trust, not meant for the benefit of a particular community, caste or section, will be entitled to claim exemption on its income in the same way as a public charitable trust. 15. We are of the view that the objects and purposes of the Assessee are both charitable and religious, the Assessee does not exist exclusively for the benefit of a particular religious community. The objects do not channel the benefits to any community and thus, would not fall as an institution existing solely for religious purpose. In that view of the matter, we are of the view that the Assessee is a charitable and religious trust which does not benefit any specific religious community and therefore, it cannot be held that it exists solely for religious purpose. It cannot be characterised as religious object especially when it does not make a distinction between caste, creed, race, religion, etc. 16. In the light of the aforesaid discussion, we are satisfied that the plea of the Assessee to recognize it as existing for “Charitable Purpose” deserves to be accepted and is accepted. We accordingly allow the plea of the Assessee and direct that the registration be allowed treating the Assessee as existing for “Charitable purpose”.

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“9. A perusal of the impugned order of the learned Commissioner of Income-tax shows that the renewal of registration under section 80G was denied by him to the assessee-trust mainly on three grounds which have already been enumerated by us while narrating the facts of the case in the foregoing portion of this order. At the time, of hearing before us, learned counsel for the assessee has made elaborate submissions to meet all these objections raised by the learned Commissioner of Income-tax while denying exemption to the assessee under section 80G. As rightly pointed out by him, the objects and activities of the assessee-trust relating to propagation of vedic thoughts and philosophy cannot be attributed to any religion as the same are more concerned 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.”

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places of worship and prayer halls’. The Hon’ble Apex Court considering the said object, held as under:-

“10. To reiterate, 'Explanation 3 does not require the ascertainment of whether the whole or substantially the whole of the institution or fund's charitable purpose is of a religious nature. If it did, it would read differently. It requires the ascertainment of whether there is one purpose within the institution or fund's overall charitable purpose which is wholly, or substantially wholly, of a religious nature. There is little doubt that clause 2(h)of the trust deed which permits the trustees to support prayer halls and places of worship sets out a purpose the whole or substantially the whole of which is of a religious nature, and this has not been seriously disputed. Therefore, in our view, the Trust and the donation by the assessee to it fall outside the scope of section 80G.”

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not an authority to conclude what teaching of Vedas involve. Hence, the decision of the Supreme Court in Upper Ganges Sugar Mills Ltd Vs. CIT (supra) is not applicable to the facts of the present case.

“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 and prayer halls". The Hon'ble Supreme Court dealing with Explanation4 of section 80G(5) held as under :

"To reiterate, Explanation 3 does not require the ascertainment of whether the whole or substantially the whole of the institution or fund's charitable purpose is of religious nature. If it did, it would read differently. It requires the ascertainment of whether there is one purpose within the institution or fund's

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overall charitable purpose which is wholly, or substantially wholly, of a religious nature. There is little doubt that clause 2(h) of the trust deed which permits the trustees to support prayer halls and places of worship sets out a purpose the whole or substantially the whole of which is of religious nature, and this has not been seriously disputed. Therefore, in our view, the trust and the donation by the assessee to it fall outside the scope of section 80G." (p. 582) The aforesaid case is clearly distinguishable from the facts of the present case as there is no clause in the trust deed in the present case which indicates that income of the petitioner-trust was to be applied wholly or substantially for any particular religion. Therefore, the said case has been clearly wrongly applied by the learned CIT(A) in the present case. In Sri Marudhar Kesari Sthanakwasi Jain Yadgar Samiti Trust's case (supra) also relied upon by the learned Counsel for the revenue, the facts of the case were distinguishable in the said case. Thus, the judgments cited and relied upon by the learned Counsel for the revenue are distinguishable on facts and do not support the case of the respondents. Since the law in the case of Upper Ganges Sugar Mills (supra) was laid down while dealing the case of deduction under section 80G of the Act in the hands of donor so also in the case of Sri Marudhar Kesari Sthanakwasi Jain Yadgar Samiti Trust (supra) by this Court, those judgments do not advance cause of the revenue. On the other hand, the case laws relied upon by the learned counsel for the petitioner fully support the case of the petitioner when the Courts have consistently held that it is the dominant object of the trust which is important and contribution and expenditure incurred by the petitioner-trust has to be viewed in light of the objects with which charitable trust in question was constituted.”

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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 religion only. All people who have faith in Lord Vishnu’s temple belong to different sects and have faith in different religions and also visit such temple of Lord Vishnu. The Revenue had not shown that entry to the temple was restricted to persons of one particular community or sect practising one religion. Hinduism is not one particular religion and different sects following Hindu philosophy do visit temples of the Lord Vishnu, be they Jains, Sikhs, Brahmins, etc. There is no watertight compartment between different castes or sects following one particular religion. Right to freedom of religion is guaranteed in the Constitution under article 25. Therefore, the Revenue could not take such a pedantic and narrow approach that the character of the charitable trust was lost 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. Therefore, the order of the Commissioner was set aside and the petitioner-trust shall be deemed to be registered under section 80G throughout the period after April 1, 2004, with all consequential benefits.”

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“Vedas: Universal appeal 4.6 Vedanta is the philosophy which analysed and taught man to be moral consciously. It is the essence of all religions. The Hindu scriptures teach that man is attracted to this earth to learn, more completely in each successive life, the infinite ways in which the Spirit may be expressed through, and be dominant over, material conditions. Slowly but surely, man, throughout the world, including India, across different religions, nationalities and ideologies, with the entering of the atomic age and the expansion of 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

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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 appellant-trust qualifies to be a charitable trust as well. Accordingly, it is to be allowed the status of a religious and charitable trust.” 27. Moreover, 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 at page 86, 87 of paper book], and for AY 2022-23, ledger account for expenses incurred in achieving the objects like donation to veda pathashalas, veda pundits, medical assistance etc [Page 94 to 99 of paper book] and invoices, vouchers, brochures and photos [page 127 to 157 of paper book] 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

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registration under section 12A of the Act as charitable trust. Consequently, the approval under section 80G of the Act is to be granted. It is ordered accordingly.

Pronounced in the open court on the date mentioned on the caption page. Sd/- Sd/- (CHANDRA POOJARI) (N.V. VASUDEVAN) Accountant Member Vice President Bangalore, Dated: 09.01.2023. /NS/* Copy to: 1. Appellants 2. Respondent 3. CIT 4. CIT(A) 5. DR 6. Guard file By order

Assistant Registrar, ITAT, Bangalore.