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Facts
The assessee, Shreeji Education and Charitable Trust, filed an application for approval under Section 80G(5)(iii) of the Income-tax Act, 1961. The Ld. CIT(E) denied the approval, holding that the trust's objects were partly religious and thus violated the conditions for approval. The trust's primary activity is running schools, and it has been registered under Section 12A of the Act.
Held
The Tribunal held that while the trust has some spiritual objectives, they are not exclusively religious and do not benefit a particular religious community. The non-obstante clause in object 5(D) stating "WITHOUT DISCRIMINATIONS OF RELIGION OR CAST" makes it clear that the object is not purely religious. The Tribunal also noted that the trust's main activity is running schools, which is a charitable purpose, and no expenditure has been incurred on religious activities.
Key Issues
Whether the assessee trust, having partly religious objects, is eligible for approval under Section 80G(5) of the Income-tax Act, 1961, when its primary activities are charitable and it does not exclusively benefit a particular religious community.
Sections Cited
80G(5)(iii), 80G(5), 80G, 2(15), 12A
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, RAJKOT BENCH, RAJKOT
Before: DR. ARJUN LAL SAINI & SHRI DINESH MOHAN SINHA
आदेश / O R D E R Per, Dr. A. L. Saini, AM: Captioned appeal filed by the assessee, is directed against the order passed by the Learned Commissioner of Income Tax (Exemption), Ahmedabad [ in short, ‘Ld.CIT(E)’] vide order dated 24.12.2024, wherein Ld. CIT(E) has denied the approval under Section 80G(5)(iii) of the Income-tax Act, 1961 (hereinafter referred to as ‘the Act’) holding that assessee has violated existing main condition of sub-Section (5) of Section 80G and Explanation 3 to Section 80G of the Act and Clause(ii) of sub- Section(5) of Section 80G of the Act. Therefore, the assessee is not entitled to get approval under Section 80G(5) of the Act.
The grounds of appeal
raised by the assessee are as follows: “1. The order passed u/s. 80G(5) of the Act by the ld. Commissioner of Income- tax (Exemption), Ahmedabad is bad in law and invalid.
2. The ld. CIT(Exemption) erred on facts as also in law in rejecting application for regular approval u/s. 80G(5) of the Act, though the purpose of the trust is not Shreeji Education and Charitable Trust in violation of the provisions of Explanation-3 and clause (ii) of sub-section (5) of section 80G of the Act.
3. The ld. CIT(Exemption.) erred on facts as also in law in rejecting application for regular approval u/s. 80G(5) of the Act, without considering submission made in prescribed manner.
4. The Appellant prays that the order of the ld. CIT(Exemption) may kindly be set aside and regular approval u/s. 80G(5) may kindly be accorded.
5. The grounds of are without prejudice to one another.
6. Your Honour’s appellant craves leave to add, to amend, alter, vary and / or withdraw any one or more grounds of appeal
on/or before hearing of appeal.”
3. Brief facts qua the issue are that the assessee filed an application for approval under Clause (iii) of first proviso to Section 5 of Section 80G of the Act in Form No. 10AB. However, after going through the application of the assessee, the Ld. CIT(E) issued a notice to the assessee calling certain details. The assessee, in response to the notice of the Ld. CIT(E), submitted relevant details including trust deed of the institution. However, the Ld. CIT(E) on perusal of the trust deed of the institution, it was observed by him that the objects of the assessee-trust is also religious in nature. Accordingly, a show cause notice was issued to the assessee, which is reproduced below: “*Please refer to your application filed in Form 10AB for registration u/s. 80G(5) (iii) of the Act For further seeking required details for granting registration, notice was issued on 05.10.2024. In response to the same, you have filed/submitted certain details/documents vide reply received on 16.11.2024, which have been considered.
2. On perusal of such details, your attention is drawn towards the MOA/Constitution of the Company/Trust, wherein para 5 contains the main Aims/objects of Trust and the objects therein at sr no 5(D) are in the field of Religion. The said objects in the trust deed/instrument of creation of company/trust are religious in nature and not charitable in nature as per Section 80G(5) of the Income-tax Act, 1961 Therefore, please explain that as to how there is no violation of the Section 80G(5) of the Act. Also furnish complete details of religious expenditure made towards such objects of Trust in past 3 years.
3. In this regard. You are requested to show cause as to why your application filed in Form 10AB under clause(iii) of first proviso to sub section (5) of Section 80G Shreeji Education and Charitable Trust should not be rejected and also your provisional registration should not be cancelled for the reasons discussed in the above para 2. 4 In case you want to change/alter impugned object(s) so as to comply with provisions of section 80G(5) of the Income Tax. 1961 (to avoid litigation on this issue) and have not already incurred any expenditure on said object(s) since taking provisional certificate, kindly file a copy of affidavit to the effect that you want to change/alter impugned object(s) including a resolution from Authorized Persons in this regard and copy of application made to Charity Commissioner/RoC in this connection clearly mentioning the old object and new object. This is subject to compliance of other provisions of Income Tax Act, 1961 for grant of approval under section 80G of Income Tax Act 1961. Further, you are requested to note that in case of non compliance/part compliance of said notice, the matter will be decided on the basis of facts/material available on record Please note that this is a final opportunity and no requests for adjournment will be entertained"”
In response to the above show-cause notice the assessee submitted it’s reply before the Ld. CIT(E). However, Ld. CIT(E) rejected the above reply of the assessee and observed that the question about how there is no violation of the main condition of the section 80G(5) of the Act which put bar for granting approval to a "Religious" or a "Religious-cum-charitable" trust, remains un-answered and accordingly the present applicant has to be decided based on material available on record. To begin with, on perusal of the objects of the applicant as stipulated in the instrument of creation, it is observed that the objectives/objects of the applicant are also religious in nature which put the applicant under the category of composite trust that is, Religious-cum-charitable trust. The object under dispute were re-produced as under: (c) Spiritual- (1) To start knowledge centers for development of the spintual knowledge of the Supreme Element Spiritual knowledge without discrimination of any kind of religion or caste, the spirit of religion, the spirit of God, and higher spiritual knowledge in human beings and to realize the principle of 'Atma Atina, Bhat Bhai' and remove the religious superstition and ignorance of the supreme element Shreeji Education and Charitable Trust (2) To start and run Sant Cottages, Yoga Cottages, Meditation Centres, Satsang Centres, Pranayama, Meditation, Yoga, Yogasana centres. (3) To establish and maintain Bhakitdham, Mukitdham, Vedic Sanskar Kendras, Yagna. (4) Schools, Divya Jeevan Kendras, Jal Kendras, Anna Kshetras, Dharamshalas.
Thereafter Ld. CIT(E) noticed that the above object(s) of the applicant is/are composite in nature and not purely charitable in nature which clearly contravenes main condition of 80G(5) of the Act which is a pre-requisite. The assessee trust should be set up only for charitable purpose. Also, even if it is assumed that the applicant has not undertaken any religious activity and has also not incurred any religious expenditure, it is always open to the applicant to undertake activities in accordance to the object under dispute in future and as explained in para 5 of this order, ceiling limit of 5 percent religious expenditure cannot grant permission to insert a purely religious or a composite object in any form under objects stipulated in instrument of creation of trust. Further, the applicant has also not filed any evidence establishing removal/amendment of its above referred religious/composite object.
Therefore Ld. CIT(E) noticed that assessee trust is not established only for charitable purposes, whereas, the provisions of section 80G of the Act makes it amply clear that the applicant/assessee has to be established only for charitable purposes and there is no transfer of application of funds for any purposes other than a charitable purpose, subject to concession granted under Sec 80G(5B) of the Act. Therefore, there is clear violation of the main condition of sub-section (5) of section 80G of the Act.
Shreeji Education and Charitable Trust 7. Hence, the Ld. CIT(E) observed that there is clear violation of clause(ii) of section 80G(5) referred to in Para 5 above, which put a bar on granting approval under section 80G(5) of the Act to the institution or fund whose instrument of constitution or rule there under permit for transfer or application at any time the whole or any part of its income or assets for any purpose other than a charitable purpose and also it is clear violation of Explanation 3 to sec. 80G of the Act which clarifies that charitable purpose does not include any purpose the whole or substantially the whole of which is religious in nature and as the above referred objects are composite/religious in nature accordingly, present application falls outside the scope of section 80G of the Act. Moreover, the provisions of section 80G(5B) of the Act is not applicable to any institution/fund established for any purposes other than charitable purpose, i.e., religious or charitable- cum-religious purposes. The ld. CIT(E) noticed that similar law has been laid down by the Hon'ble ITAT Agra in the case of Yug Chetna Parmarth Trust, reported in 44 taxmann.com 446.
Thus, Ld.CIT(E) observed that in light of above discussion and having regard to provisions of Section 2(15), Section 80G(5), Section 80G(5B) and Explanation 3 to Section 80G(5) of the Act, the following is inferred:
(i) Section 80G(5) of the Act applies to the donations to any institution or fund only if it is established in India for a Charitable purpose only. Thus, the purpose or object necessarily have to be only charitable, not religious, for an institution or fund to avail benefits of Sec. 80G(5) of the Act. Even if one object is for religious purpose, approval u/s.80G of the Act cannot be granted as there is no way to stop assessee from incurring expenditure on that particular object in excess of 5% since occasion to renew such an approval will arise only after 5 years and any subsequent withdrawal of Shreeji Education and Charitable Trust approval will jeopardize the interests of donor who have made donations in good faith to the assessee -trust. (ii) Sub-section (5B) of Section 80G of the Act merely further clarifies and qualifies the conditions laid down under clause (ii) of Section 80G(5) of the Act, in terms of extent of expenditure of religions nature which could be incurred by trust while carrying out its charitable activities. The Sub-section (5B) of Section 80G of the Act does not mandate religious object or allows religious objects to institutions/funds desirous of approval or approved u/s 80G(5) of the Act. (iii) Thus, for the purpose of section 80G(5) of Income Tax Act, 1961, the objects can be only of charitable nature and even not a single object can be religious in nature as unambiguously and explicitly provided for under Explanation 3 to Section 80G of the Act. (iv) It is incorrect to interpret that Sub-section (5B) of Section 80G of the Act overrides provisions of Section 80G(5) of the Act. The Provisions of Sub-section (5B) of Section 80G of the Act only clarifies and qualifies the conditionality provided for by clause(ii) of section 80G(5) of the Act and has to do nothing with the object of institutions/funds desirous of approval or approved u/s 80G(5) of the Act. Such institutions/funds are mandatorily required by section 80G(5) and Explanation 3 to Section 80G of the Act to have only charitable objects. This position has been explained by Hon'ble Supreme Court of India in the case of Director of Secondary Education Vs. Pushpendra Kumar AIR 1998 SC 2230 wherein the Supreme Court held that a provision in the nature of an exception cannot be so interpreted as to sub-serve the main enactment and thereby nullify, the right conferred by the main enactment. In view of the above, the ld. CIT(E) noticed that the applicant has violated existing main condition of sub-section (5) of section 80G, Explanation (3) to section 80G of the Act and clause (ii) of sub-section (5) of section 80G of the Act and hence the applicant is not entitled to get
Aggrieved by the order of the Ld. CIT(E), the assessee is in appeal before us.
Shri Rajendra Singhal, Ld. Counsel for the assessee, argued that the undisputed and relevant facts are that the appellant trust has been created on 25/11/2013 and registered in the office of the Charity Commissioner of Gujarat. The trust has been created for a number of objects including social, cultural, medical, educational, human upliftment through spirituality, animal welfare etc. Only activity of the trust is running two schools since 2013 to till date, namely Bhagyodaya Academy – Primary and Bhagyodaya Academy – Secondary in Jam Kandorana Village, in backward region Saurashtra. The Photos related to the activities were also produced before the Bench. After verification of objects and activities, the Ld. CIT(E) has granted regular registration u/s. 12AB(1)(b) of the Act, to the trust, vide URN no. AAQTS3244L24AD01 dated 13.12.2024 from AY 2022-23 to AY 2026-27. Besides, assessee had been granted provisional approval u/s 80G(5) of the Act also in Form No. 10AC, issued on 17.11.2021, in terms of section 80G(5)(iv) of the Act for the period from 17.04.2021 to AY 2024-25. Thereafter, an application has been made, requesting regular approval u/s 80G(5) of the Act, with supporting documents including trust deed, photos of activities and audit reports & audited financial statements for FY 2020-21 to FY 2023-24. However, the application has been rejected, on the ground that one of the object as per clause 5(D) of the trust deed describes object of religious nature. From the above undisputed facts, as emerging from the impugned order also, the trust has been registered u/s 12A of the Act, after verification of the objects and activities. The assessee trust is providing educational services to the society, since creation of the Shreeji Education and Charitable Trust trust, without discrepancy on cast, creed, colour and religion etc. The assessee`s main activity is running two schools only. Apart from running schools, neither any other activity was carried nor fund of trust was applied for any other purpose, as apparent from the audited financial statements for FY 2020-21 to FY 2023-24, as produced before the Ld. CIT(E). The Ld. CIT(E) has verified assessee’s, audit reports as well as the audited financial reports for FY 2020-21 to FY 2023-24, while granting registration u/s 12A of the Act, as well as in proceedings u/s 80G(5) of the Act. No any instance has been pointed out in any of the proceedings, showing carrying any other activity or use of trust for any other purpose. A probability has been raised that the trust might have undertaken activity towards the object 5(D) in future. The Ld. Counsel submitted that the only reason for rejection of assessee`s application is the observation in respect of one of the objects 5(D) to be religious in nature. This has led the ld. CIT (E) to reject assessee’s application.
The ld. Counsel explained the objectives of this trust, which are without any discrimination to cast or religion, hence registration should be granted to the assessee; as the majority of objects are charitable in nature, which are as follows:
A. Social: 1) This trust will do all the activities regarding development of human society and regarding research and development. 2) It will do activities for the conduct of better family, good virtues. Simple living, better society with good qualities and it will publish matter regarding this. 3) It will conduct activities against bad qualities, bad habits and addiction to protect the society and humans from those. As well as it will arrange programs for anti-addiction and anti-drug activities. 4) To establish shelters for old handicapped, weak, widow, blinds, deaf, dumb, mentally retarders and start ease centres for those. 5) As the part of women empowerment, establish and manage courses and centres for tailoring, cutting, fitting, designing, dress materials etc. 6) To run annakshetra. to eliminate social ill systems, to remove dowry system, to handle marriage bureau, to arrange samuhlagna and to receive donations and gifts regarding the same. To prepare the backward Shreeji Education and Charitable Trust and tribal class economically, start and handle professional and educational Services. 7) To carry funeral of any dead body of living being, including funeral of unknown persons. 8) To distribute required goods and food packets and serve in any natural calamities. It will be able to distribute food packets and grain. 9) It will avail services by taking grant of E-billing centres from PGVCL so that people don't have to go far. And it will be able to do other social activities. It will conduct all the anti-pollution activities so that human society 10) and other animals could get fresh food, water and air. To conduct plantation programs, plant the trees, distribute and grow 11) plants, to conduct activities for gardening and to protect and maintain them, to conduct the activities for forest protection and development.\ B. Cultural: 1) To do activities for giving virtues to the human society and especially to Indian youth. 2) To arrange competition of music, dance, drama, drawing, acting and etc. and to get income from those competition. This income could be used for the objectives of trust. 3) It will be able to provide scholarship to the students and teachers of music, dance, drawing, acting and etc. for motivating them . 4) It will be able to provide certificates to the students studying in the schools of music, dance, drawing, acting and etc, by examining them and it will be able to form a committee for such examination and take grant from state or central government. 5) It will be able to establish schools and colleges giving training of music, dance, drawing, acting and etc. and will be able to handle it. It will handle and run marriage bureau and if needed it will take grant from state or central government. C. Health and Medical: 1) It will do activities of health related health protection for human and any other living entity. 2) To start blood banks for treatment, to run an existing blood bank. To establish, run and manage hospital, clinic, medical, maternity home, nursing home, after care clinic home etc. as well as to help such organization or to handle them. To provide, all disease treatment camp, eye treatment camp, dental camp, camps for awareness of thalassemia . AIDS and distribution of medicines. 3) It will try to protect health by mainly the fundamentals of Ayurvedic treatment method and inform the people of its usefulness in day to day life. Then also, if needed, it will use any other methods like allopathic, homeopathy, naturopathy, biochemical, yunaani, magnetism, acupuncture, acupressure for the treatment of people. 4) Hospitals, clinics, treatment camps, panchkarma centres, research centres, vaysthaapan Kendra, dirghayu Kendra. punsanvanan Kendra could be established and managed.
Shreeji Education and Charitable Trust 5) The trust will accept any income legally receivable to any organizations handled by this trust i.e, hospitals. Clinics, maternity homes. Nursing homes etc. 6) To give treatment to patients at very low rate and to purchase any vehicles for such organization and to avail mobile clinics. 7) To prepare the projects for medical services and work according to the projects prepared by — the co-operative. Government. Proprietary organization, company or firm. Medical stores for low cost medicines could be established and handled. 8) To arrange camps for medical protection, exhibition of forest medicines, treatment camp, suvarnaprashan camp, and anti-addiction. 9) The treatment will be done by green, fresh and dry medical vegetation's swaras, kavath, churna, vati. guti. avleh. tail, ghrut, malam and fresh honey. As well as to establish and handle the medical vegetation organization. To arrange activities like Yoga. Yogasan. Pranayama for health 10) protection of humans. It will do activities of health protection by publishing books. 11) Pamphlets etc D. Spiritual :- 1) “WITHOUT DISCRIMINATIONS OF RELIGION OR CAST”, the trust shall establish SPIRITUAL KNOWLEDGE CENTERS; to remove bad customs, blind faith in any kind of religious power and ignorance in human being as per the principle of 'Atma Atma Bhai Bhai' as well as to spread higher spiritual knowledge and brother hood in human being. 2) To establish centres to develop the religious feelings in human by not considering cast or class, spiritual feelings to materialise the slogans like "Atma-Atma" and "Bhai-Bhai" and to eliminate religious superstitions and to develop the spiritual knowledge of God. 3) to establish and maintain SantKutir, Yoga Kutir, meditation centre, silence, praanayam Kendra. yogasan Kendra. 4) to establish and maintain libraries for spiritual books, literature, magazines and pamphlets. To establish and manage centres for DivyaJivan and to handle the higher spiritual activities that are helpful to society and human in real sense. 5) to establish and maintain Bhaktidham, Muktidham, Vaidik Sanskar Kendra, YagnaShaala, DivyaJivan Kendra, Jal Kendra, Ann Kshetra and Dharmashala. E. Gaushala and Panjarapol:- 1) This trust will try its best to stop the animals being taken to slaughter houses. It will conduct all the activities for protection of cows and will try to stop the illegal deals of animals and stop any torture and pain being given to animals. 2) To run gaushala panjarapol and cattle camps, to get subsidy for that activity, to develop, maintain, give treatment to the generations of cows, to get the grass from vidi, either from government or from private, to hire the room for that as well as to develop gaushala and panjarapol receive Shreeji Education and Charitable Trust donations from foreign or from own country. To handover the management of gaushala and panjarapol to other trusts. It will avail the facilities of grass and water for gaushala and panjarapol. 3) To establish shelter for animals and birds, to feed them and for their protection to establish and handle the zoo. 4) To handle the zoo in the hands of Nigam, board, state or central government. 5) To avail better quality of milk. ghee, butter, curd, gaumutra. cow dunk etc. by developing and maintaining the gaushala. To conduct activities of animal pity by stopping the animal slaughter. 6) To avail the facility of clinic, hospitals for old and handicapped animals and birds. To avail the mobile clinics for the same. 7) To conduct the environmental activities by developing the fertilizers from the cow or buffalo's dunk and their urine and by running gas plants. F. Educational : 1) This trust will do all the educational works related to motivate the society, to remove the darkness of ignorance and to scatter the light of knowledge. 2) This trust will establish, handle and manage nursery, play house. Balwadi, Ghodiyaghar, Anganwadi, mother and children development centres. 3) This trust will establish and manage Gujarati medium and English medium playhouses, nursery, LKG, HKG. pre-primary school, primary school, middle school, high school, higher secondary school and many types of colleges. 4) This trust will establish and manage industrial schools, agricultural school and college, laboratory. workshop, library, research centres. Computer training school, college and any other universities. 5) Ayurvedik, Homeopathic, Medical, Dental. Physiotherapy. Nursing course, Pharmacy and any other colleges would be established and managed. 6) Polytechnic. ITI, engineering, architectural, designing. BCA, BBA. MCA, MBA. PTC, CPEd, AID. BEd. MEd. etc. related certificate, degree, diploma, post diploma, post-graduation etc. colleges would be started and managed. 7) Arts, commerce, science, agriculture, veterinary etc. colleges could be established and manage Sanskrit Schools. 8) Backward class, tribe, other backward class" boarding, boys/girls boarding, aashramshaala, hostel, old age homes, organisation for handicapped, gymnasium etc. would be established and handled. 9) For the mental and physical development of youth: gymnasium, sports activities, sports club, gymnastic organisation as well as regarding the sports activities the training would be given in a scientific manner. Colleges regarding purchase of the tools for training schools would be established and managed. To prepare the projects for the educational tasks and work according 10) to the projects prepared by the co-operative, government. Proprietary organisation, company or firm. For the motive of students' technical education and professional 11) courses, they, would join in GEB billing centres. BSNL and other Shreeji Education and Charitable Trust different schemes and would work. As well as they will guide students and help them in required financial and social necessity. 12) Schools and organisations for old age education, literature, music, drama, and drawing would be started and managed. It will publish educational research book writing. It will be able to 13) guide, write and publish the books related to religion, as well as distribution of pamphlets of religious and social awareness education. For helping the children at orphanage, this trust will be able to help 14) the children of orphanage with educational books, education or any other social and economic requirement without considering cast. It will be able receive required donation, income and wealth regarding that. It will be able to adopt needy children according to the situation as well as make them develop socially and economically. It will arrange national and international conferences for higher 15) education such as M.Phil. Ph.D., P.D.F. etc. and it will be able to be helpful to the Students pursuing such higher courses. As well as it will help these students in the research work. Activities like technical, management and self-employment would be 16) helped by this trust. It will do all the activities for agricultural development and maintenance, it will provide knowledge of different languages and conduct the courses for such languages.”
On the other hand, the Ld. CIT-DR for the Revenue, stated that the trust has certain spiritual objectives, like spirit of God, Satsang, Bhaktidham, Muktidham etc, which are religious in nature. Therefore, the assessee- trust is not entitled to approval under Section 80G(5)(iii) of the Act. The Ld. CIT-DR also relied on the findings of the Ld. CIT(E) which we have narrated above.
We have heard the rival contentions, perused the material on record and duly considered facts of the case in the light of the applicable legal position. We note that since commencement of activities, assessee’s activity is only running of schools, which is charitable activity, not a religious activity. The assessee’s had never carried any religious activity nor used trust fund towards, the spiritual object as per clause 5D of the trust deed. Besides, assessee had never incurred any religious expenses. On basis of the activities, the assessee-trust has been registered u/s. 12A of the Act
At this juncture, it is appropriate to go through the provisions of section 80G of the Act, which is applicable to the assessee-trust under consideration, which are reproduced below for ready reference: “Deduction in respect of donations to certain funds, charitable institutions, etc. 80G. (1) ……. (5) This section applies to donations to any institution or fund referred to in sub- clause (iv) of clause (a) of sub-section (2), only if it is established in India for a charitable purpose and if it fulfils the following conditions, namely :— (i) ….. … (iii) the institution or fund is not expressed to be for the benefit of any particular religious community or caste; …… (5B) Notwithstanding anything contained in clause (ii) of sub-section (5) and Explanation 3, an institution or fund which incurs expenditure, during any previous year, which is of a religious nature for an amount not exceeding five per cent of its total income in that previous year shall be deemed to be an institution or fund to which the provisions of this section apply. …. Explanation 3.—In this section, "charitable purpose" does not include any purpose the whole or substantially the whole of which is of a religious nature.” (Emphasis supplied) 15. The object 5(D) as per the trust deed in english language is reproduced below:
“5D Spiritual :- 1“WITHOUT DISCRIMINATIONS OF RELIGION OR CAST”, the trust shall establish SPIRITUAL KNOWLEDGE CENTERS; to remove bad customs, blind faith in any kind of religious power and ignorance in human being as per the principle of 'Atma Atma, Bhai Bhai' as well as to spread higher spiritual knowledge and brother hood in human being. 2.To establish centres to develop the religious feelings in human by not considering cast or class, spiritual feelings to materialise the slogans like "Atma-Atma" and "Bhai-Bhai" and to eliminate religious superstitions and to develop the spiritual knowledge of God.
To establish and maintain SantKutir, Yoga Kutir, meditation centre, silence, praanayam Kendra. yogasan Kendra.
Shreeji Education and Charitable Trust 4. To establish and maintain libraries for spiritual books, literature, magazines and pamphlets. To establish and manage centres for DivyaJivan and to handle the higher spiritual activities that are helpful to society and human in real sense.
5. To establish and maintain Bhaktidham, Muktidham, Vaidik Sanskar Kendra YagnaShaala, DivyaJivan Kendra, Jal Kendra, Ann Kshetra and Dharmashala.
We note that after carefully considering the above object, we find that the object 5(D) is not an exclusive or overriding object. Assessee’s trust has other objects towards educational, medical, yoga, social, cultural, gaushala, as well as spiritual. None of the object is religious as well as for benefit of an exclusive religious community or caste. We note that the object 5(D) under consideration begins with a non-obstante clause “WITHOUT DISCRIMINATIONS OF RELIGION OR CAST”. This non-obstante clause provides that it shall uphold its enforceability over later part of the object, even if that is contradictory to it. Hence, the object is not a religious object. Further the purpose YOGA is expressly charitable object as per definition of charitable purpose as per the provisions of section 2(15) of the Act, which says that Charitable purpose" includes relief of the poor, education, Yoga, medical relief, preservation of environment (including watersheds, forests and wildlife) and preservation of monuments or places or objects of artistic or historic interest, and the advancement of any other object of general public utility. Moreover, Publication of spiritual books, literature and running of spiritual and Vaidik centers is also a charitable purpose. It is further submitted that assessee- trust had not constructed any place of worship or conducted exclusively for religious activities, but it is running two schools. Even in the impugned order also, there is no allegation that this object is for benefit of a particular religion.
We find that the Explanation 3 to section 80G(5) states that "in this section, "charitable purpose" does not include any purpose the whole or substantially the whole of which is of a religious nature." This explanation Shreeji Education and Charitable Trust takes note of the fact that an institution or fund shall be for a charitable purpose and may have a number of objects. If any one of these objects is wholly or substantially wholly of a religious nature, the Institution or Funds falls outside the scope of section 80G. The objects as per Explanation 3 must be wholly or substantially whole of which must be of religious nature. Objects and activities of assessee- trust exhibits that none of them is wholly or substantially for the religious purpose. We find that the Hon'ble Allahabad High Court in case of CIT v Sri Radha Raman Niwas Trust [2014] 42 taxmann.com 77 has 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 Act. The High Court held that unless it was proved that the above 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 Act.
We note that the ITAT, Nagpur Bench has in case of Shiv Mandir Devsthan Panch Committee Sanstan v CIT [2012] 27 taxmann.com 100 (Nagpur Trib) has held that worship of Lord Shiva, Hanumanji, Goddess Durga and maintaining of temple cannot be regarded as for the advancement support or propagation of a particular religion and granted the approval under section 80G of the I.T. Act. The Hon’ble ITAT Bangalore Bench in M/s Sri Channamallikarjuna Trust Committee Gangavathi v CIT (E) - (order dated 4.5.2022) explained the difference between charitable purpose and religious purpose and held as under: "13. In sections 11, 12 & 13, a distinction has been drawn between 'charitable purpose' and 'religious purposes', but there is no definition of the term 'religious purpose' in the Act. Generally interpreted, it would encompass within its fold all institutions or funds, which are for the advancement, support or propagation of a religion and its tenets. How religion is to be understood in the context of the Act, has been examined in the case of Dawoodi Bhora Shreeji Education and Charitable Trust Jamat (supra). If the benefit of religious endowments too ensures for the benefit of the public, then the religious trusts/endowments too will be entitled to the exemption provided by section 11 of the Act. A religious trust could be 'public' or 'private'. Section 13(1)(a) bars exemption to any private religious trust, which does not enure for the benefit of the public. Section 80G(5)(iii) makes a distinction in cases of institutions or funds, which are for the benefit of any 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.
We find that the objects and purposes of the assessee are both charitable and religious, however, 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. We are of the view that the assessee is a charitable 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. 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. As we have explained above that the object 5(D) of assessee- trust is not expressly be for benefit of any particular religious community or caste; therefore, assessee- trust is satisfying the condition as per 80G(5)(iii) of the Act and it is not violation of the provisions of the Act. Moreover, assessee-trust has not spent any amount ( not even 1%) on these religious activities. Considering the above facts and circumstances, we direct the ld. CIT(E ) to grant the registration as per the provisions of law.