TMI Blog1998 (1) TMI 11X X X X Extracts X X X X X X X X Extracts X X X X ..... smissed the appeal by his order dated April 16, 1991. The aggrieved assessee-temple agitated the matter further by filing an appeal before the Tribunal, as stated above. Before the Tribunal, the assessee-temple, it appears, produced the exemption certificate obtained from the Income-tax Department under section 11 of the Income-tax Act as relatable to non-agriculturists for the year ending June 30, 1990. Placing reliance on the exemption certificate obtained by the assessee-temple under section 11 of the Income-tax Act, the Tribunal also granted exemption under section 4(b) of the Act. In that view of the matter, the Tribunal allowed the appeal, giving rise to the present action---T. C. (R.) No. 140 of 1994, by the Revenue. Notice, of course, had been issued to the assessee-temple in this action and the assessee-temple also entered appearance through its counsel K. Srinivasan, R. Venkataraman, G. Prabhurajadurai and P. Jeevarathinam. None of the counsel appearing for the assessee-temple was present in the court at the time, when the matter was called and no representation was made on their behalf. In such a situation, there is no other go for us, except to dispose of the m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... property held under trust wholly or partly for charitable or religious purposes, is not included in the total income for the purposes of the Income-tax Act, 1961 (Central Act No. XLIII of 1961)" assumes signal importance. Unless and until the said phraseology is properly understood, by interpretative process, it is not feasible or possible to come to any conclusion as to whether and in what manner any agricultural income derived from the property held under trust, wholly or partly for charitable or religious purposes, is exigible to tax or not and to what extent. For a proper understanding of the phraseology, as extracted above, it is but necessary to refer to certain provisions of the Constitution and the Indian Income-tax Act, 1922. "Agricultural income" is defined under clause (1) of article 366 of the Constitution of India, which reads as under : "366. In this Constitution, unless the context otherwise requires, the following expressions have the meanings hereby respectively assigned to them, that is to say--- (1) 'agricultural income' means agricultural income as defined for the purposes of the enactments relating to Indian income-tax. ." Under section 2(1A) of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by this Part and any law made in contravention of this clause shall, to the extent of the contravention, be void. (3) In this article, unless the context otherwise requires,--- (a) 'law' includes any Ordinance, order, bye-law, rule, regulation, notification, custom or usage having in the territory of India the force of law ; (b) 'laws in force' includes laws passed or made by a Legislature or other competent authority in the territory of India before the commencement of this Constitution and not previously repealed, notwithstanding that any such law or any part thereof may not be then in operation either at all or in particular areas. (4) Nothing in this article shall apply to any amendment of this Constitution made under article 368." Article 246 dealing with the subject-matter of laws made by Parliament and by the Legislatures of States reads as under : "246. (1) Notwithstanding anything in clauses (2) and (3), Parliament has exclusive power to make laws with respect to any of the matters enumerated in List I in the Seventh Schedule (in this Constitution referred to as the 'Union List'). (2) Notwithstanding anything in clause (3), Parliament, and, subject to claus ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n. Section 12 of the Income-tax Act deals with the income of trusts or institutions from contributions. Section 12A prescribes the requisite and necessary conditions as to the registration of trusts, etc., Section 13 deals with the situations in respect of which section 11 shall not apply. Further, section 11 is subject to the provisions of sections 60 to 63, as had been indicated in the opening part of the section itself. Thus, the Income-tax Act contains relevant salient provisions prescribing the parameters for grant of exemption in respect of income from property held for charitable or religious purposes. As already adverted to, the subject-matter of taxation cannot be any one other than "agricultural income" under the Act. For the sake of emphasis, we may again reiterate that the income from the property held under trust for religious or charitable purposes, which were originally exempt from tax was sought to be taxed by Act 4 of 1973 with effect from April 1, 1972, by the introduction of clause (b) of section 4 and in such process, income from property held under trust for religious or charitable purposes is sought to be exempted in the manner and methodology cont ..... X X X X Extracts X X X X X X X X Extracts X X X X
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