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TMI Blog2018 (12) TMI 1257X X X X Extracts X X X X X X X X Extracts X X X X ..... ed 08.05.1989. It was also renewed subsequently from time to time till assessment year 2014-15. By an order dated 03.11.2016, the CIT (Exemptions) granted approval from the assessment year 2016-17. Therefore, according to the Ld. counsel, the Assessing Officer denied exemption under Section 10(23C) of the Act for the assessment year 2015-16 on the ground that there was no approval for the assessment year 2015-16. According to the Ld. counsel, what was sought for by the assessee is renewal of approval granted earlier in the year 1989. Therefore, the CIT (Exemptions) ought to have renewed the approval under Section 10(23C) of the Act from the year in which the earlier approval expired. 3. Shri N.V. Balaji, the Ld. counsel for the assessee, further submitted that as per the procedure, earlier, every year the approval under Section 10(23C) of the Act has to be renewed. Subsequently, the CBDT by its circular No.7 of 2010 dated 27.10.2010 clarified that it is one time approval which would be valid until it was withdrawn. The requirement of periodical renewal of approval was dispensed with. Therefore, according to the Ld. counsel, the CIT (Exemptions) ought to have granted approval from ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... institution and assessable as such under the provisions of Income-tax Act. The Executive Officer / Joint Commissioner of the assessee-temple has also clarified that to her understanding and knowledge, all the temples in the State are filing return of income regularly. It is also clarified that the object of the assessee temple is provided in Section 66 of Hindu Religious and Charitable Endowments Act, 1959. 5. On the contrary, Shri S. Nataraja, the Ld. Departmental Representative, submitted that all the temples in the State of Tamil Nadu and Union Territory of Puducherry are independent religious institutions and they are liable for assessment as such under the provisions of Income-tax Act. According to the Ld. D.R., it is open to the independent temples to apply for registration either under Section 12AA as religions institution or apply for approval under Section 10(23C)(v) of the Act before the CIT (Exemptions). Referring to the communication said to be received from CIT (Exemptions), the Ld. D.R. clarified that all the religious and charitable institutions are now under the control of CIT (Exemptions) at Chennai. As per the said communication said to be received from CIT (Exem ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt of the Government of Tamil Nadu. In order to examine the status of the assessee-temple, we need to go through the legislative history of the religious institutions in the State. 8. Before independence, former rulers and British Government asserted their sovereign power to visit endowments and to prevent and redress abuses in the management. In 1817, the British Government proclaimed Madras Endowment Escheats Regulation No.VII of 1817 conferring general superintendence on all the endowments of Hindu temples in the erstwhile Board of Revenue. The erstwhile Board of Revenue had to ensure that all such endowments were duly appropriated to the purpose for which they were destined by the Government or individuals by whom such endowments were made. The Board of revenue was authorized to appoint local agents. The local agents so appointed by the Board of revenue could not function properly owing to lack of mechanism to enforce their instructions and orders. Accordingly, Regulation VII of 1817 was repealed by an Act XX of 1863. Under Act XX of 1863, local temple committee was formed as a successor to Board of Revenue. This local temple committee also could not function properly. As a co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ght by, the Hindu community or of any section thereof, as a place of public religious worship" "Religious institution" is defined in Section 7(18) of Hindu Religious and Charitable Endowments Act, 1959 as follows:- "Religious institution" means a math, temple or specific endowment and includes:- (1) a samathi or brindavan or (2) any other institution established or maintained for religious purpose." 11. "Religious charity", "religious endowment", "Specific endowment" are also defined in Section 6(16), 6(17) and 6(19) of the Hindu Religious and Charitable Endowments Act, 1959. Therefore, a temple is a religious institution independently besides Samadhi, brindavan, etc. The word "Samadhi" "brindavan" are also defined in Hindu Religious and Charitable Endowments Act, 1959. In view of the above, such religious institutions, namely, temple, Samadhi, brindavan, math, arakattalai, endowment are independent assessable unit under the Income-tax Act. The question now arises for consideration is whether these temples, math, endowments, arakattalai, Trust which are being administered and managed by the officers of Hindu Religious and Charitable Endowments Department are part of Gove ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (iiiae) ... .... .... .... .... .... ..... ... (iv) ... .... ..... ..... ..... ..... ..... ... (v) any trust (including any other legal obligation) or institution wholly for public religious purposes, (which may be approved by the prescribed authority), having regard to the manner in which the affairs of the trust or institution are administered and supervised for ensuring that the income accruing thereto is properly applied for the objects thereof." 14. Therefore, in view of Section 10(23C)(v) of the Act, the assessee being a public religious temple / institution is entitled for approval by the Commissioner (Exemption). In fact, the Commissioner (Exemption) granted approval under Section 10(23C)(iv) of the Act by an order dated 03.11.2016 from the assessment year 2016-17 which was subsequently modified by an order dated 28.12.2017 as if the approval was granted under Section 10(23C)(v) of the Act. From the material available on record it appears that the approval under Section 10(23C) of the Act was granted from 08.05.1989 by Notification No.8354. Therefore, the assessee is seeking only renewal of earlier approval. Hence, this Tribunal is of the considered opinion that ..... X X X X Extracts X X X X X X X X Extracts X X X X
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