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6. The only activity of Trust is to do Charitable Activities.
7. The Director of Income Tax(Exemption) Hyderabad, has not considered the facts pleaded by the Petitioner in its application for renewal of exemption U/s. S.80G(5)(vi) of the Income Tax Act, 1961."
2. The learned counsel for the assessee submitted that the assessee-trust was registered under S.12A of the Act by the Commissioner of Income-tax and was also granted the benefit of S.80G of the Act. However, the application of the assessee for renewal of approval under S.80G filed on 15.12.2009 was rejected by the Director of Income Tax(Exemption). The only reason advanced by the Director of Income Tax(Exemption) for refusing approval under S.80G was that the assessee was engaged in the spread of knowledge of Vedanta and Advaita by publishing books and periodicals and also engaged in propagation of Vedas by running a residential Veda Patasala and that the assessee trust was created with the blessings of Shri Sankaracharya of Kanchi Kamakoti Peetham, which is a religious institution. The Director of Income Tax(Exemption) has referred to the decision of Hon'ble Andhra Pradesh High Court in the case of Arsha Vignana Trust (295 ITR 437)-AP. The learned counsel for the assessee submitted that the reasoning of the Director of Income Tax(Exemption) is patently contrary to facts. The assessee has not spent even a single rupee on publication of books and periodicals for the spread of knowledge in 'Vedanta' and 'Advaita' nor has it ever run a residential patasala for the propagation of Vedas. He submitted that the decision of the Hon'ble jurisdictional High Court in Arsha Vignana Trust (supra) is distinguishable on facts since in the case before the Hon'ble A.P. High Court, the assessee has published books on Ramayana, Sri Kamakoti Punya Bhoomi Trust, Hyderabad Mahabharatha and Darshanas. He submitted that the only activity undertaken by the assessee trust was giving scholarships to the poor and meritorious students studying in the affiliated schools, as is evident from the statement of accounts of the assessee for the last many years filed in the compilation by the assessee.
6. We find that the only activity undertaken by the assessee trust was to accept donations and to grant scholarships of small amounts to poor and meritorious students. In fact, scholarships have been titled as merit scholarships by the assessee and have been awarded to various students studying in affiliated schools in the State of Andhra Pradesh. The recipients of merit scholarships are not confined to a particular school and were studying in different affiliated schools. The assessee has filed photocopies of the receipts in respect of merit scholarships from the year 2006 to the year 2008 before us and a test check thereof shows that the students receiving merit scholarships have secured marks ranging from 77% to 95% in their qualifying examinations. The scholarship was given on the recommendation Sri Kamakoti Punya Bhoomi Trust, Hyderabad of the Head Master of the school in which the recipient of the merit scholarship was studying and the receipt is duly signed by the Head Master of the School as well as the parent of the beneficiary and the authorized trustee of the assessee trust. Details of the scholarships granted during the year 2009-10, as furnished by the assessee at pages 50 to 53 of the second compilation, are tabulated as under-