TMI Blog2019 (4) TMI 298X X X X Extracts X X X X X X X X Extracts X X X X ..... Immaculate (Tamil Nadu) and others [2019 (3) TMI 1253 - MADRAS HIGH COURT] wherein this Court held that the State is liable to deduct income tax at source under Section 192 of the Income Tax Act, 1961, while making payment of salary from the Grant-in-Aid, to the Teachers in the respondents Societies/Schools, who may be Nuns or Sisters or Missionaries working as Teachers in such Institutions. salary in question was not directly received by the Congregation or Religion by overriding diversion of title, but were paid by the State to the Teachers who are Nuns or Missionaries and thereafter, it might have been applied or made over to the Church or Diocese or the Institution run by them. Merely by illustrative view of the entry shown as depos ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd batch [Union of India Vs. The Society of Mary Immaculate (Tamil Nadu) and others] , wherein this Court held that the State is liable to deduct income tax at source under Section 192 of the Income Tax Act, 1961, while making payment of salary from the Grant-in-Aid, to the Teachers in the respondents Societies/Schools, who may be Nuns or Sisters or Missionaries working as Teachers in such Institutions. 2.The relevant portion of the said judgment rendered on 20.03.2019 is quoted below for ready reference: 49. On the basis of the aforesaid, we find that the salary in question was not directly received by the Congregation or Religion by overriding diversion of title, but were paid by the State to the Teachers who are Nuns or Missionarie ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n. Therefore, neither the Income Tax Department nor the State Government have anything to do with the religiious character of the Institution, may be Teachers or Nuns or Missionaries and therefore, they cannot take a stand for not making the tax deduction at source in view of the Canon Law. 51. Therefore, in our opinion, with great respects, the learned Single Judge has taken an impermissible route of Canon Law to interpret the provisions of Income Tax Law and holding such Tax Law to be of secondary importance, vis-a-vis the Canon Law applicable to the individual Teachers belonging to the class of Nuns, Missionaries or Sisters. Therefore, we are of the considered opinion that the present writ appeals filed by the Union of Ind ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
