TaxTMI 
TaxTMI 
2016 (6) TMI 430
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....P(MD).No.3838 and 3839 of 2016 and WP(MD).No.4309 of 2016 and WMP(MD).No.3840 and 3841 of 2016 and W.P.(MD).No.4310 of 2016 and WMP(MD).No.3842 and 3843 of 2016 and WP(MD).No.4262 of 2016 and WMP(MD).No.3798 and 3799 of 2016 and W.P(MD).No.4311 of 2016 and WMP(MD).No.3844 and 3855 of 2016 and W.P(MD).No.4467 to 4478 of 2016 and WMP(MD).Nos.4011 to 4034 of 2016 For the Petitioners : Mr. Isaac Mohanlal (in all W.Ps. Except W.P.No.4262/2016) For the Petitioner : Mr. D. Anbarasu ORDER These Writ Petitions have been filed praying to call for the records relating to the impugned proceedings issued by the second respondent in Letter C.No.Misc/PRO/2015-16, dated 07.10.2015 and the consequent circular of the 4th respondent Director of Treasuries and Accounts in RC.No.23545/2014/E1 dated 26.10.2015 insisting upon the petitioner to deduct Income Tax (TDS) from the salaries of the Religious Nuns in the service of the petitioners' school and quash the same. 2. By consent, all these cases are taken up for final disposal. 3. The only point which has been raised in all these Writ Petitions is that all these petitioners are in Catholic Institutions, religious Priests and Nuns who have bee....
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....er and Accountant General. Since the ultimate beneficiaries are the congregation or Diocese, which is already exempted from the purview of the Income Tax that their Salary by the Government need not be paid directly to them. The salary could be directed to be paid to the respective congregation without deducting TDS, so that the entire amount will go to the congregation which is already exempted from payment of Tax and the individuals also have the benefit of it. It was represented before Income Tax Department as well as the Government that they will not have any claim, if the amount is directly paid to the said congregation. Therefore, in view of this undertaking they would now only contend that the common order be passed in all these petitions. 5. The Income Tax Department is represented by the learned counsel Mr.R. Krishnamoorthy and Mr.D. Muruganantham, learned counsel representing on behalf of the Government of Tamil Nadu. 6. The Income Tax Department has stated that the congregations as on date which have got the exemption alone are entitled to Tax exemption and the present congregations are the Diocese, which have not been exempted from the purview of the Income Tax are no....
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....of India in a communication issued by the Commissioner of Income Tax, Bombay City in reference No.Dat/284 (287)/60, which is addressed to one of the Solicitors in Bombay, it has considered the claim made by the Rev. Fr. Valeria Godinho regarding exemption from payment of income tax for the Priests of the Archdiocese, Bombay. In that letter, it has been stated as follows: It has been decided in the case of Rev.Fr.Valeria Godinho that the Departmental appeals filed be withdrawn. Incase where amount received by Priests as salary are subject to an overriding title by their conditions and rules of service, to be passed over to the Church authorities (whose income is exempt from tax) such amounts will not be liable to be taxed. Therefore, immediately after the advent of the very Act itself way back in the year 1963 the Government of India thought it fit to withdraw the appeal filed by the department as against the deduction of payment of tax on the salary of Priests of the Archdiocese of Bombay. 10. Thereafter, the Commissioner of Income Tax, Madras, in his proceedings in R.C.No.230..11(75), dated 30.01.1969 addressed to the Secretary, Madras Catholic Educational Council on the repr....
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....y them independently. They work for the Congregation in their respective status as Teacher or any other capacity by virtue of their status as a Priest and Nuns but having been duly appointed as teacher or any other capacity in the institutions. They receive the salary but they pass it on to the Diocese according to them. If the money is directly paid to the individuals, necessarily TDS has to be deducted. But, the amount is being paid by them to the congregation which is the ultimate beneficiary, which has already been exempted from payment of Tax and therefore unnecessarily TDS should not be deducted. Therefore, they have come forward with these writ petitions. 13. This Court specifically asked the petitioner counsel that whether they are willing to give necessary undertaking to both department as well as the State Government to the effect that when the income is directly given to the Congregation or the Diocese, they will not have any further claim and such salary directly paid would be deemed to be a full satisfaction for the payment of money to the respective Priests and Nuns. In fact, the counsel has specifically stated that they have agreed to file necessary affidavit or let....