SWAMI INDERVESH FOUNDATION,ROHTAK vs. CIT (EXEMPTIONS), CHANDIGARH, CHANDIGARH

ITA 3247/DEL/2026Status: DisposedITAT Delhi29 September 2026AY 2026-276 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the Prescribed Authority's approach of singling out one or two clauses from the assessee's numerous objectives to allege engagement in religious activity was not prudent. The Tribunal found that the assessee's broader objectives, such as running yoga and meditation centers, fighting social evils, and helping the downtrodden, were predominantly charitable. The financial statements did not reveal expenditures exclusively for religious purposes. The Tribunal relied on the principle that merely because a trust has one object of a religious nature does not mean it cannot be established for charitable purposes, especially when other objectives are charitable. The Tribunal also referred to a coordinate bench decision in Baba Banda Singh Bahadur, emphasizing that the predominant intention of the institution and the proportionality of expenditures on Essential Religious Practices (ERP) should be examined. Activities like running hospitals and educational institutions, even if serving a place of worship, are considered public utility activities. Therefore, the denial of approval under Section 80G and the grant of registration solely as a religious entity were not sustainable. The appeals were allowed, and the Prescribed Authority was directed to grant the registration and approval within four weeks.

What were the facts?

The assessee, Swami Indervesh Foundation, filed appeals against orders dated 14.01.2026 and 16.01.2026 passed by the Commissioner of Income Tax (Exemption), Chandigarh (Prescribed Authority). These orders challenged the registration granted under Section 12A/12AA/12AB as a Religious Entity and the cancellation of approval under Section 80G of the Income Tax Act for Assessment Year 2026-27. The Prescribed Authority had concluded that the assessee was engaged in religious activities, citing objectives related to propagating Vedic principles and running a research center for Vedic philosophy, as well as 'Temple Expenses'. The assessee contended that similar objectives had previously led to approval under Section 80G and provisional approval for AY 2022-23 to AY 2026-27. The assessee also submitted financial statements showing general expenditures, not exclusively religious ones, and highlighted broader charitable objectives.

What were the issues?

1. Whether the assessee's objectives, specifically those related to propagating Vedic principles and running a Vedic research center, along with 'Temple Expenses', render it primarily a religious entity, thereby disentitling it from approval under Section 80G of the Income Tax Act, 1961? (Question of law and fact, turning on Section 80G(5) and Explanation 3 thereto). Assessee's contentions: The assessee argued that it had previously received approval under Section 80G(5)(iv) and provisional approval for AY 2022-23 to AY 2026-27 based on the same objectives. Its financial statements did not show exclusively religious expenses, and its broader objectives were charitable, including running yoga and meditation centers, fighting social evils, and helping the downtrodden. Merely pointing to one or two clauses should not lead to denial of approval. Revenue's contentions: The revenue, through the ld. DR, defended the impugned orders, implying that the Prescribed Authority's findings regarding the religious nature of the assessee's activities were valid.

Which sections of the Income-tax Act were involved?

Section 80G,Section 12A,Section 12AA,Section 12AB

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCHES, NEW DELHI

Before: SHRI ANUBHAV SHARMA & SMT. RENU JAUHRI

Pronounced: 29.09.2026

PER SHRI ANUBHAV SHARMA, JUDICIAL MEMBER:

These appeals filed by the assesse are against the orders dated 14.01.2026 & 16.01.2026 passed by the Commissioner of Income Tax (Exemption),

ITA 3246 & 3247/DEL/2026 SWAMI INDERVESH FOUNDATION

Chandigarh (in short ‘Prescribed Authority’) in DIN & Notice No. ITBA/EXM/F/EXM44/2025-26/1084761583(1) & ITBA/EXM/F/EXM45/2025- 26

The order continues below.

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