TMI Blog2018 (12) TMI 1257X X X X Extracts X X X X X X X X Extracts X X X X ..... pproval ought to have been renewed from the assessment year 2015-16.The Commissioner (Exemption) is directed to grant approval under Section 10(23C)(v) from assessment year 2015-16, so that the approval under Section 10(23C)(v) of the Act can be continued without any break. - Decided in favour of assessee - ITA No.1090/Chny/2018 - - - Dated:- 16-11-2018 - SHRI N.R.S. GANESAN, JUDICIAL MEMBER AND SHRI A. MOHAN ALANKAMONY, ACCOUNTANT MEMBER For The Appellant : Shri N.V. Balaji, Advocate For The Respondent : Shri S. Nataraja, JCIT ORDER PER N.R.S. GANESAN, JUDICIAL MEMBER: This appeal of the assessee is directed against the order of the Commissioner of Income Tax (Exemptions) dated 03.11.2016 as modified by order dated 28.12.2017. 2. Shri N.V. Balaji, the Ld.counsel for the assessee, submitted that the assessee is a Hindu religious temple situated in the outskirts of Chennai since 1943. According to the Ld. counsel, the assessee temple was under the management of individuals till 1963. In the year 1963, the Hindu Religious and Charitable Endowments took over the administration. The assessee-temple was also notified under Section 80G(2)(b) of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ritable Endowments Board / Department. She was appointed by the Government and salary was paid from Consolidated Fund of State Government. However, as per the provisions of Hindu Religious and Charitable Endowments Act, 1959, every temple has to reimburse the expenditure towards payment of salary and other benefits to the Government. Referring to Section 92 of Hindu Religious and Charitable Endowments Act, 1959, the Executive Officer / Joint Commissioner submitted that to reimburse the expenditure incurred by the Government, towards the salary and allowances of the officers appointed by it, each temple has to contribute 12.5% of its income to the Government. Even though, initially the salary was paid by the Government to the Executive Officer and other officers and employees appointed by the Government, in fact, it was reimbursed by respective temples in the State. Therefore, the Executive Officer / Joint Commissioner of the assessee-temple clarified that the assessee-temple is a religious institution, hence, eligible for registration under Section 10(23C)(v) of the Act. She also clarified that the assessee-temple is an assessable unit under the provisions of Income-tax Act. The Ex ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng Officers of the range. 6. The Ld. Departmental Representative further submitted that the assessee-temple is a religious institution, therefore, it was approved as religious institution under Section 10(23C)(v) of the Act from the year 1989. However, according to the Ld. D.R., the assessee has not applied for renewal of approval granted earlier. Therefore, the application filed in 2016 was treated as application for fresh approval under Section 10(23C)(v) of the Act and the CIT (Exemptions) has accordingly granted approval from the assessment year 2016-17 by an order dated 03.11.2016. This order was subsequently modified by the CIT (Exemptions) by an order dated 28.12.2017. Since the renewal application was not filed in time, according to the Ld. D.R., the CIT (Exemptions) has rightly granted fresh approval from the assessment year 2016-17. Therefore, according to the Ld. D.R., the assessee cannot claim any retrospective effect of approval under Section 10(23C)(v) of the Act. In other words, according to the Ld. D.R., the assessee cannot claim any approval from the assessment year 2015-16. 7. We have considered the rival submissions on either side and perused the relevant m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e authorities concerned to appoint trustees in the place of hereditary trustees who were not functioning. An area committee was also formed for all the non-listed temples. 10. The Madras Hindu Religious and Charitable Endowments Act, 1951 was subsequently repealed by Tamil Nadu Hindu Religious and Charitable Endowments Act, 1959. In fact, Tamil Nadu Hindu Religious and Charitable Endowments Act, 1959 consolidates the law relating to the administration and governance of Hindu religious and Charitable endowments and institutions. The provisions of Hindu Religious and Charitable Endowments Act, 1959 were also extended to Jain religious institutions or endowments. Hierarchy of officers were appointed for managing the religious institutions, temples, endowments and math, etc. In the State of Tamil Nadu and the Union Territory of Puducherry, there are about 38000 temples are in existence, besides endowments, math, arakattalai and trusts which are established for providing service to various temples in the State. Before going into the issue arises in this appeal, we have to see what is a temple. The word temple is defined in Section 7(20) of Hindu Religious and Charitable Endowments ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd of the State. The Commissioner subsequently, out of Tamil Nadu Hindu Religious and Charitable Endowments Administration Fund, shall repay to the Government the sums paid by the Government towards salary, allowance, pension and other remunerations to the Government employees. Section 92 of Hindu Religious and Charitable Endowment Act, 1959 provides for payment of 12.5% of the temple s income to the Government Account in respect of service rendered by the Government and their officers. Therefore, it is obvious that all the temples whether they are listed temples or non-listed temples or called otherwise, math, endowments, religious trusts and other bodies which manage the property of temples are independent assessable units under the provisions of Income-tax Act. 13. We have also carefully gone through the provisions of Section 10(23C)(v) of the Income-tax Act, 1961 which reads as follows:- 10(23C) any income received by any person on behalf of ( i) . . . . . . . ( ii) . . . . . . . ( iii) . . . . . . . ( iiia) . .. . . . . ( iiiaa) . . .. .. . . . ( iiiaaa) . . . . . . ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to Section 66 of the said State Act, then the assessee is not eligible for any exemption. 15. Even though there are about 38000 temples in the State of Tamil Nadu and Pondicherry, the Commissioner (Exemption) claims that 782 temples have obtained PAN numbers, out of which, only 131 temples filed the return of income. It is not known what action has been taken by the Department against other temples, math, endowments, trusts, which have not filed their return of income. This Tribunal is of the considered opinion that even though all the temples, math, endowment, mosques and churches, etc. are primarily performing religious functions in this State, under the provisions of Income-tax Act, they are all independent taxable units. Therefore, it is for the income-tax authorities to bring all the temples, churches, mosques, wakf, endowments, math, Kattalai and whatever other name they are called, including Gurudwara, Sikh, Jain Buddhist temple to the tax net. If no action was taken so far in respect of other temples, mosques, wakf, churches, math, endowments, Kattalai, trusts, Gurudwara, Sikh, Jains or Buddhist temple, etc. the concerned income-tax authorities shall enforce the provisi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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