JIVA INSTITUTE OF VEDIC SCIENCE & CULTURE,FARIDABAD vs. CIT EXEMPTIONS CHANDIGARH, CHANDIGARH
What did the Tribunal hold?
The Tribunal found that the CIT(E) had selectively interpreted the trust's objects without examining its actual activities, which included running a school. The impugned order was set aside.
What were the facts?
The assessee trust applied for registration under Section 12AB(1)(b) and claimed to be a religious cum charitable trust. The CIT(E) granted registration as a religious entity, citing certain clauses in the trust's objects related to Vedic principles.
What were the issues?
Whether the CIT(E) erred in classifying the trust as a religious entity solely based on certain object clauses without considering its actual activities, and the consequential denial of Section 80G approval.
Which sections of the Income-tax Act were involved?
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, “A” BENCH, CHANDIGARH
Before: HON’BLE SHRI LALIET KUMAR, JM & HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM
Heard together (2 matters)
Read from the judgment's own cause title. This page is filed under one of them.
IN THE INCOME TAX APPELLATE TRIBUNAL “A” BENCH, CHANDIGARH HYBRID HEARING BEFORE HON’BLE SHRI LALIET KUMAR, JM AND HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM
आयकर अपील सं. / ITA No.625/CHANDI/2026 & 2. आयकर अपील सं. / ITA No.626/CHANDI/2026 Jiva Institute of Vedic Science & Culture CIT (Exemptions) बनाम/ 1144, Sector 19 Sector-17 Vs. Faridabad – 121002 Chandigarh - 160017 �ायीलेखासं./जीआइआरसं./PAN/GIR No. AAATJ-1164-A (अपीलाथ�/Appellant) : (��थ� / Respondent) अपीलाथ�कीओरसे/ Appellant by : Sh. Rabindra Choudhary (CA) – Ld. AR ��थ�कीओरसे/Respondent by : Sh. Manav Bansal (CIT) – Ld. DR सुनवाईकीतारीख/Date of Hearing : 26-05-2026 घोषणाकीतारीख /Date of Pronouncement : 02-06-2026 आदेश / O R D E R Per Bench 1. Aforesaid appeal by the assessee ITA No.625/Chandi/2026 arises out of an order passed by Ld. Commissioner of Income Tax (Exemption), Chandigarh, [CIT(E)] on 11-01-2026 granting registration to the assessee-trust u/s 12AB(1)(b) for AYs 2027-28 to 2031-32. The only grievance of the assessee is that it has been accorded the status of Religious Entity as against the claim of the assessee that it was
religious cum charitable trust. Having heard rival submissions, the appeal is disposed-off as under. 2. From case records and assessee’s written submissions, it emerges that the assessee society has claimed itself to be established with the primary object of carrying out charitable and educational activities. The activities of the assessee are stated to include promotion of education, cultural awareness, training, social welfare and other public welfare initiatives. In application Form No.10AB, it was stated that the assessee was engaged in genuine educational activities. In support, the assessee furnished all supporting documents including trust deed, Memorandum of Association (MOA), financial statements, activity details and other documents as required by the department. However, Ld. CIT(E), by observing that certain clauses in the object clause refer to promotion and teaching of vedic principles and propagation of cultural teachings relating to vedic literature formed an opinion that the assessee-society was engaged in religious activities and accorded registration as a religious entity. It is the contention of Ld. AR that none of the activities of the assessee are religious in nature and the assessee was running a school in the name of JIVA public school which is affiliated with ICSE Board. The same would indicate that institution was imparting formal, structured and recognized education in accordance with the prescribed academic standards. The existence of affiliated school, in itself, would establish the genuineness of educational activities of the assessee-society, The Ld. CIT(E) failed to examine the actual activities of the assessee 2
society and accorded the approval as religious entity merely on the basis of selective interpretation of certain object clause of the assessee-society. The Ld. CIT-DR fairly stated that the issue could be re-examined by appropriate authority. 3. Quite clearly, Ld. CIT(E) has gone by selective interpretation of certain object clause of the assessee trust while forming an opinion that the assessee was a religious entities. Apparently, the actual activities of the assessee have not been examined at all while according the approval. The Ld. AR has furnished plethora of documents in support of charity claim of the assessee. On these facts, we set aside impugned order and restore the issue of registration back to the file of Ld. CIT(E) for fresh consideration with a direction to the assessee to plead and prove its case forthwith. The appeal stand allowed for statistical purposes. 4. In ITA No.626/Chandi/2026, the assessee is aggrieved by consequential denial of approval u/s 80G(5)(ii). The denial is on the same ground i.e., by selective interpretation of object clause of the assessee trust that it was engaged in religious activities. The same is merely consequential in nature. Accordingly, this appeal also stand restored back to Ld. CIT(A) on same lines. 5. Both the appeals stand allowed for statistical purposes. Order pronounced on 02nd June, 2026.
-Sd- -Sd- (LALIET KUMAR) (MANOJ KUMAR AGGARWAL) JUDICIAL MEMBER ACCOUNTANT MEMBER 3
AS Dated: 02-06-2026 आदेश की �ितिलिप अ�ेिषत /Copy of the Order forwarded to : 1. अपीलाथ�/Appellant 2. ��थ�/Respondent 3. आयकरआयु�/CIT 4. िवभागीय�ितिनिध/DR 5. गाड�फाईल/GF
ASSISTANT REGISTRAR
ITAT CHANDIGARH
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