PRACHYA VIDDYA SAMVARDHAN MANDAL,VALPOI vs. COMMISSIONER OF INCOME TAX (EXEMPTION), BENGALURU

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ITA 146/PAN/2024Status: DisposedITAT Panaji30 June 2026AY 2024-257 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal noted that the assessee had been granted approval under Section 80G for subsequent assessment years with the same objects. It also referred to coordinate bench decisions holding that teaching Vedas and Sanskrit literature is a charitable activity.

What were the facts?

The assessee, a society formed for oriental studies, sought approval under Section 80G(5) of the Income Tax Act. The CIT(Exemptions) rejected the application, holding that the assessee's activities, including teaching Vedas and Sanskrit, were religious and not charitable.

What were the issues?

Whether the assessee's activities of imparting knowledge of ancient Indian Shastras, Vedas, and Sanskrit constitute a charitable purpose eligible for approval under Section 80G(5), or if they are primarily religious.

Which sections of the Income-tax Act were involved?

Section 80G(5)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, PANAJI BENCH, ‘DB’ PANAJI

Before: DR.MANISH BORAD & SHRI PAVAN KUMAR GADALE

For Appellant: Shri P.K. Bansal
For Respondent: Shri Jeetendra Kumar
Hearing: 21.05.2026Pronounced: 30.06.2026

PER DR. MANISH BORAD, ACCOUNTANT MEMBER :

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 2 Prachya Viddya Samvardhan Mandal

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

3 Prachya Viddya Samvardhan Mandal

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 4 Prachya Viddya Samvardhan Mandal

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

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