TaxTMI 
TaxTMI 
2021 (2) TMI 860
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....aitheeswaran Koil at Sirkazhi Taluk, Thanjavur, Sri Veeratteswara Swami Temple, Korkkai, Mayiladuthurai Taluk, Sri Kutramporutheeswarar Temple, Thalaignayiru, Mayiladuthurai Taluk, Sri Lakshmipureeswarar Temple, Thirunandriyur, Mayiladuthurai Taluk, Sri Maruthapureeswarar Temple, Maruvatthur, Sirkazhi Taluk, Sri Mariyamman Temple, Sri Angalaparameswari Temple, Sri Ayyanar Temple, Sri Pidariyamman Temple, Sri Thirowbathaiyamman Temple, Vaitheeswaran koil, Sirkazhi Taluk, Sri Ayyanar Temple, Neikuppai, Sirkazhi Taluk, ('constituent temples') shrines in the aforesaid temple premises and endowments and charities. As for the petitioner in W.P.29312 of 2019, the Amirthakadeswaraswamy Devasthanam comprises the Sri Amirthakadeswara Swami Temple, Thirukkadaiyur, Tranqubar Taluk, Sri Veeratteswara Swami Temple, Parasaloor, Tranqubar Taluk, Sri Thuraikattum Vallalar Swami Temple, Vilanagar, Tranqubar Taluk, Sri Mariyamman Temple, Ottangadu Temple, Tranqubar Taluk, Sri Agneeswara Swami Temple, Udayavar Koil Pathu, (Panjakkai), Tranqubar Taluk, Sri Edirkaleswarar Temple, Thirukkadaiyur, Tranqubar Taluk and Sri Kathayamman Temple, Thirukkadaiyur, Tranqubar Taluk ('constituent temples') along wit....
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....ommunication dated 05.08.2019 was thereafter issued by R2, the Income Tax Officer (Exemption Ward), putting the petitioners to notice that the cash deposits made were proposed to be brought to tax as unaccounted cash credits in terms of Section 115 BBE of the IT Act and inviting the petitioners to submit objections to this proposal. The petitioners reiterated the claim of exemption under Section 10(23BBA) stating that they were under no obligation to file returns of income. As far as the cash deposits are concerned, the explanation given was that the offerings in SBN had been made by devotees in the hundis voluntarily during the period of demonetization, and such collections, according to the devasthanams, were not taxable. Several judgements have been relied upon in support of their claim for exemption. 7. On 09.09.2019, the Joint Commissioner of Income Tax (Exemptions)/R3 proposed to complete the assessments to the best of his judgment and, invoking the proviso to Section 144(a) of the IT Act issued show cause notices, again putting the petitioners to notice that the cash deposits were proposed to be brought to tax. The petitioners reiterated the claim of exemption. On 18.09.2....
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....turn of income is required to be furnished as per the conditions and manner prescribed in Rule 12 of Income-tax Rules, 1962, on or before 27/12/2017. P.VIJAIDEEPAN CIRCLE 1 KUMBAKONAM -------- GOVERNMENT OF INDIA INCOME TAX DEPARTMENT OFFICE OF THE JOINT COMMISSIONER OF INCOME TAX (EXEMPTIONS) Room no.308, 3rd Floor,Aannexue Builidng, Aayakar Bhawan, No.121, M.G.Road, Nungambakkam, Chennai-34/Coimbatore F.No.JCIT(E)/BCE/144A/Scrutiny/2019-20 Date-18/09/2019 To, The Income Tax Officer (Exemptions) Trichy. Sir, Sub:Directions u/s144A-in the case of Sri Vaithiyanatha Swamy Devasthanam Vaitheeswaran Koil-A.Y.2017-18-reg. Ref: 1.Assesse....
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....treated under AOP Status. 8. The AO is directed to verify the total cash credits reflected in the bank accounts with regular books of accounts to verify an unexplained cash credits u/s 68 or unexplained money u/s. 69A of the IT Act, 1961, and also verify any inadmissible under AOP status for finalizing the assessment in the lines as per SOPs issued by the CBDT time to time (as mentioned under reference). Necessary penalty proceedings may be initiated. Draft Assessment order may be sent to this office. 10. The counter filed by the respondents adopts the stand that the provisions of Section 10(23BBA) are not attracted to the facts and circumstances of the petitioner devasthanams as, according to them, the constituent temples function under the aegis of the HR&CE Act and the 'body' or 'authority' as referred to in Section 10(23BBA) would be the HR&CE department only with exemption only available to it. Moreover, the proviso to Section 10(23BBA) specifically excludes temples and other religious institutions functioning under the management of the 'body' or 'authority' from the scope of exemption, stating that they fall within the ambit of taxability. Thus, in summation, ....
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....charitable trusts or endowments of other communities, there are similar bodies set up under enactments in force in different States. These bodies or authorities set up by or under the Central, State or Provincial Acts are entrusted with the administration of public religious or charitable trusts within their jurisdiction. These public religious or charitable trusts also cover temples, maths, wakfs, churches, synagogues, agiaries and other places of public religious worship, other religious and charitable endowments, as also societies formed for religious or charitable purposes under the Societies Registration Act, 1860. Such bodies or authorities are at times in receipt of income during the course of administration of such public religious or charitable trusts or institutions. Since these bodies or authorities are not engaged in any commercial activity, it is proposed to insert a new clause (23BBA) in section 10 in order to grant exemption in respect of income arising to anybody or authority established, constituted or appointed under any enactment for the administration of such public religious or charitable trusts or endowments or societies for religious or charitable purposes. I....
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....rant of exemption is conditional upon the existence of the structure as contemplated above and is directed towards the entity in the second tier, explicitly excluding all places of public religious worship and charities constituted under them, from the benefit of exemption. 18. This understanding of Section 10(23BBA) is accepted by all parties before me. The question that remains is where the petitioner Devasthanams fall within the aforesaid structure and such determination would be critical to answer the question of their taxability. 19. The Sri Vaithiyanathaswamy Devasthanam was under the supervision and administration of the British till, in 1842, its management was handed over to the Pandarasannadhi of Dharmapuram Adheenam, who has been managing the same since then, through a Kattalai Thambiran. The handing over is pursuant to the enactment of the Religious Endowments Act, 1863. 20. Original Suit (O.S.No.10 of 1911) was filed by Chidambaranatha Tambiran, the then Kattalai Thambiran, seeking removal of the then Pandara Sannidhi of the Dharmapuram Adheenam from the trusteeship of Vaitheeswaran Koil, for appointment of new trustees and for framing of a scheme. A scheme ca....
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....ernance and administration of the assets and receipts of the devasthanam and constituent temples by the Pandarasannadhi, who was named as trustee. Suffice it to say that the Supreme Court set aside the appointment of the Executive Officer confirming the scheme as framed originally. Thus, the temples, endowments and charities comprising the Vaithiyanathaswamy or Velur Devasthanam continue to be administered and managed till date by a Kattalai Thambiran appointed periodically by the Pandarasannathi in his capacity as trustee under a scheme of administration framed in a scheme suit filed under Section 92 of the Civil Procedure Code 1908 in line with the provisions of the Madras Hindu Religious & Charitable Endowment Act, 1951 ('1951 Act') and its precursor enactments, in the year 1919. 23. In light of the above facts, the requirements of Section 10(23BBA) appear to be satisfied in this case (i) the body or authority being the Devasthanam, (ii) the required enactments being the Civil Procedure Code 1909 (Central) and the Madras Hindu Religious & Charitable Endowment Act, 1951 (State) and precursor State enactments (iii) the devasthanam holding within its fold several constituent tem....
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....tax (1959 36 ITR 194 SC) and of the Delhi High Court in Finite Infratech (specifically paragraphs 25, 26 & 27) are relied upon in this regard. 27. Reference is made to Ramiengar alias Ramanuja Chariyar (supra) wherein the history relating to temples in Thanjavur and their endowments has been referred to in detail. The Court noticed that proper appropriation of the endowments of Hindu and Mohammedan temples and religious establishments and the preservation of the structures and management of their affairs were exercised by officers of the local Government indiscriminately prior to the period before they were assumed by the Government. It was in 1817 that the management of religious establishments and their endowments was made a legal obligation on the Board of revenue and their local agents by virtue of Regulation VII of that year. Act 20 of 1863 also states in Sections 3 and 4 thereof that the two classes of temples and religious establishments referred therein were at the time of its passing subject to the control of the Board of revenue and their local agents. 28. Reference is made to S.Govinda Menon Vs. The Union of India and Another (1967 2 SCR 566) that considered certai....
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....quirement for deduction of tax at source from income earned by them. 32. In the case of Payyanur Sri Subramaniam Swami Temple (supra), a learned Single Judge of the Kerala High Court answered the claim of that temple to exemption under Section 10(23BBA) positively, on the ground that the temple was constituted under the 1951 Act. The matter was decided on a concession by the Income Tax Department, recorded by the Court at paragraph 6, the court then issuing a mandamus for refund of the tax collected. There is no discussion on the interpretation of Section 10(23BBA) itself. 33. The Vaithyanathaswamy Devasthanam had questioned the fixation of salary payable to the employees of the devasthanam contending that the Government had no jurisdiction to fix the salaries of its employees. The matter was held adverse to the petitioner in a decision in 2012 2 CTC 218, Arulmighu Vaithiyanathaswamy Devasthanam, represented by its Hereditary Trustee (supra). This case does not advance the case of either party before me. 34. The argument of the Sri Amirthakadeswaraswamy Devasthanam to the effect that it should be deemed to have been constituted under the 1863 Central Act is, in my view, no....
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.... thousands of Acres of lands since ancient times. Even during the times of East India Company, complaints were received regarding maladministration of these institutions. The general public lodged complaints with the kings then and East India Company. In the meanwhile, the Madras regulation 1817 was enacted. This Act provided for monitoring whether the grants and endowments to temples were properly utilized or diverted for the welfare of private individuals. The Board was empowered to carry out this exercise. Due to this, thousands of temples were brought under the control of the Government. In 1858, the Indian Government's Administration was transferred to the British crown directly from the hands of the East India Company. It was required for the British Government to win the confidence of the people and to reduce their ill will. Hence, the British Government assured that it will not interfere in the religious matters. Hence, the persons who were managing the affairs of the temples and their properties continue to enjoy them without any hindrance. Even though, large number of complaints was received, the British Government kept aloof from the temple....