TaxTMI 
TaxTMI 
2015 (8) TMI 1145
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....05-06 the Assessing Officer found the deposit to the extent of Rs. 19,28,264. For the assessment year 2006-07 a deposit of Rs. 11,80,407 and for the assessment year 2007-08 deposit of Rs. 30,42,728 was found. According to the learned Departmental representative, the bank account stands in the individual name of the assessee. The assessee is the bishop/metropolitan of Marthoma Syrian Church of Malabar. According to the learned Departmental representative, the original name of the assessee was Joseph Mar Iranius and after he became metropolitan, the name was changed to Most. Rev. Dr. Joseph Marthoma. The Department found a bank account in Federal Bank, Kozhencherry Branch. The account was opened in the name of the assessee during the financial year 2003-04. According to the learned Departmental representative, the assessee also purchased land in his name. The assessee claimed before the Assessing Officer that the bank account was opened in fiduciary capacity as bishop of the church and all the deposits were accounted in the books of Marthoma Syrian Church of Malabar and the church of Adoor. However, the Assessing Officer found that the money said to be collected by the assessee and d....
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....ho is appearing before this Tribunal) alleging that the property in the individual name of the bishop (assessee) was shown as asset of the church in the balance-sheet. The learned representative submitted that the complaint made to Institute of Chartered Accountants was examined by the disciplinary committee constituted under section 21B of the Chartered Accountants Act, 1949. The disciplinary committee found that the land was purchased from church fund in the name of the bishop and head of the Adoor Mavelikkara Diocese. It was further found by the Disciplinary Committee that the land was entered in the asset register in the books of account of the headquarters. The addition to land and building was further approved by the headquarters in the year 2006-07. Therefore, the disciplinary committee found that there is no guilt of professional conduct in showing the land as asset in the balance-sheet of the church. According to the learned representative, this shows that even though the land stands in the name of the assessee being the bishop/metropolitan of the diocese, it does not belong to him. He is holding the same in fiduciary capacity as head of the religious institution. Referrin....
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.... account de facto belongs to the church. The donors, who contributed for the cause, have credited the money into the hermitage account in the name of the assessee. The very credit in the account is the credit to the church for the hermitage for old age people of the church, who lost their spouse. The construction account was given to the church and it was incorporated in the church account which was approved by the supreme body of the church, viz., mandala. Therefore, according to the learned representative, when the money was credited in the bank account its character is a receipt by the church. Therefore, it goes to the church by overriding title as found by the apex court in Radhasoami Satsang v. CIT [1992] 193 ITR 321 (SC). The learned representative has also placed reliance on the judgment of the apex court in CIT v. Imperial Chemical Industries (India) (P.) Ltd. [1969] 74 ITR 17 (SC). Referring to the decision of this Tribunal in Loknete Balaswaheb Desai Sahakari Sakhar Karkhana Ltd. v. Deputy CIT [2014] 148 ITD 372 (Pune), the learned representative submitted that when the assessee's role is only as trustee, the amount collected in his capacity as trustee cannot be taxed....
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....itution it is binding on him as a contract under the Indian Contract Act. The assessee cannot go beyond his oath of affirmation executed on the date of assuming of the office of bishop or metropolitan. It is not in dispute that during the assessment years under consideration, the assessee is the metropolitan/ bishop of the diocese. The oath of affirmation executed by the assessee can be enforced by the church/diocese against the assessee. Therefore, whatever movable and immovable properties, assets, bank deposits possessed by him would automatically go to Marthoma Syrian Church. He cannot own anything except his patrimony. Under the Indian Contract Act, this oath of affirmation can be enforced against the assessee by the church. Therefore, this Tribunal is of the considered opinion that all landed properties, bank accounts, assets possessed by the assessee in his individual capacity would be the property of the church. As rightly submitted by the learned representative for the assessee, the money received by the assessee as metropolitan/bishop would go to the church by way of overriding title. Therefore, no part of the income would arise or accrue to the assessee. 10. We have also....