2011 (4) TMI 385 - AT - Income Tax

Registration under section 12A - Appellant-Trust Religious or Charitable - religious and the charitable is inherent in the very definitions of the two concepts and has to be admitted and respected - Continuing further 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 - Accordingly it is to be allowed the status of a religious and charitable trust - Decided in favour of assessee.

Summary

Issues Involved:
1. Delay in filing the appeal.
2. Nature of the trust's activities: religious or charitable.
3. Interpretation of Vedic teachings and their classification.
4. Overlap between religious and charitable activities.
5. Applicability of case law.

Issue-wise Detailed Analysis:

1. Delay in Filing the Appeal:
The appellant's appeal was delayed by 605 days. A condonation petition and an affidavit explaining the delay were submitted. The delay was attributed to a genuine misunderstanding due to the issuance of two orders under section 12AA by the Commissioner of Income-tax (CIT). The Bench found the reasons satisfactory and condoned the delay, allowing the appeal to proceed.

2. Nature of the Trust's Activities: Religious or Charitable:
The trust was registered under section 12A of the Income-tax Act, 1961, seeking recognition as a charitable institution. However, the CIT registered it as a religious institution, stating it primarily benefited the Hindu community. The appellant contended that the Vedas, which the trust aimed to propagate, were universal and not confined to any single community. The trust also engaged in charitable work for the general public.

3. Interpretation of Vedic Teachings and Their Classification:
The Tribunal examined whether Vedic texts could be classified as religious in nature. It delved into the origin, content, and philosophical aspects of the Vedas, noting their divine origin, profound philosophical science, and teachings on the nature of Brahma, atma, and maya. The Tribunal concluded that Vedas are essentially religious scriptures, and their study and dissemination constitute religious instruction.

4. Overlap Between Religious and Charitable Activities:
The Tribunal acknowledged the inherent overlap between religious and charitable activities. It noted that while the Vedas have universal appeal, the teachings imparted are of a religious nature. The trust's activities, including Vedic education, were deemed religious. However, the trust also engaged in purely charitable activities, as outlined in its Object Clause and activities undertaken.

5. Applicability of Case Law:
The Tribunal reviewed two case laws cited by the parties. The decision in CIT v. Sree Seetharama Anajaneya Veda Kendra was found irrelevant as it pertained to the actual conduct of activities and income diversion, which was not the issue in the present case. The second decision, Shavak Shiksha Samiti v. CIT, was also deemed inapplicable as it dealt with the refusal of registration under section 12A, which was not the matter at hand.

Conclusion:
The Tribunal concluded that the appellant-trust qualifies as both a religious and charitable trust. The appeals were allowed, granting the trust the status of a religious and charitable institution.