Temple-management body exemption under section 10(23BBA) upheld for a board constituted under civil court scheme.

A temple-management board constituted under section 92 of the Code of Civil Procedure, 1908 for administration of a public religious temple was treated as a body constituted under a Central Act for the purposes of section 10(23BBA) of the Income-tax Act, 1961. On that basis, its income was regarded as eligible for exemption because the statutory provision covers bodies or authorities established, constituted or appointed under an Act where the Act provides for administration of public religious or charitable trusts or endowments. The assessee-board's exemption claim was therefore sustained, and the Revenue's challenge failed.

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Issues: Whether the assessee-board was entitled to exemption under section 10(23BBA) of the Income-tax Act, 1961 on the ground that it was constituted under section 92 of the Code of Civil Procedure, 1908 for administration of a public religious temple.

Analysis: Section 10(23BBA) exempts the income of a body or authority established, constituted or appointed by or under a Central, State or Provincial Act where the Act provides for administration of public religious or charitable trusts or endowments. The assessee-board was constituted under section 92 of the Code of Civil Procedure, 1908 by a civil court scheme, later upheld in appeal, for the management and administration of a public temple. On those facts, the board fell within the statutory description of a body constituted under a Central Act for administration of a public religious endowment. The reasoning was reinforced by the cited precedent treating similar temple-management bodies as enjoying unconditional exemption under section 10(23BBA).

Conclusion: The assessee was held entitled to exemption under section 10(23BBA), and the Revenue's challenge to the grant of exemption failed.

Final Conclusion: The departmental appeals were rejected and the exemption claimed by the assessee-board was sustained for both assessment years.

Ratio Decidendi: A temple-management body constituted under section 92 of the Code of Civil Procedure, 1908 for administering a public religious temple qualifies as a body constituted under a Central Act for the purposes of section 10(23BBA) of the Income-tax Act, 1961, and its income is exempt.

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