IN HIGH COURT OF JUDICATURE AT MADRAS DATED : 18.02.2020 CORAM : HONOURABLE MR.JUSTICE N.KIRUBAKARAN and HONOURABLE MR.JUSTICE P.VELMURUGAN T.C.A.No.81 of 2020 Income Tax Officer (Exemptions), 121, M.G.Road, Nungambakkam, Chennai - 600 034. ... Appellant Vs M/s.Arulmigu Devi Karumariamman Thirukoil, Thiruverkadu, Poonamalle Taluk, Chennai - 600 077. ...Respondent PRAYER: Tax Case Appeal filed under Section 260A of Income Tax Act, 1961 against order dated 16.11.2018 in I.T.A.No.1090/Chny/2018 on file of Income Tax Appellate Tribunal, 'B' Bench, Chennai. For Appellant : Mr.J.Narayasamy, Senior Standing Counsel. For Respondent : Mr.N.V.Balaji. 1/6 T.C.A.No.81 of 2020 JUDGMENT (Judgment of Court was delivered by N.KIRUBAKARAN, J) This tax case appeal has been filed against order of Income Tax Appellate Tribunal dated 16.11.2018 in I.T.A.No.1090/Chny/2018 in allowing appeal filed by assessee 2.The facts of case are as follows: Respondent is Hindu temple situated at aforementioned address that falls within purview and consequently is managed under Hindu Religious and Endowment Department of Government of Tamil Nadu. Under Section 10 (23C) (v) of Income Tax Act, 1961, income received on behalf of trusts or institutions operating wholly for religious or charitable purposes is exempted for purpose of calculation of income tax under Act. Section 10 (23C) provides that in computing total income of previous year of any person, any income falling within any of clauses shall not be included. However, exemption envisaged under Section 10 (23C) (v) is granted only on basis of specific application to this effect and grant of approval by prescribed authority. various criteria http://www.judis.nic.in 2/6 T.C.A.No.81 of 2020 that prescribed authority should consider at time of granting approval for such exemption is contained in various provisos to Section 10 (23C). 3.It is seen that in present case respondent was granted approval for exemption under this provision by way of Government Notification No.8354 dated 08.05.1989. This approval was renewed from time to time subsequently. This approval expired before assessment year 2015-2016 and therefore, respondent had to gain approval from appellant in order to continue enjoying exemption available under said provision. 4.The respondent being aware of this did not apply for approval under Section 10 (23C) (v) for Assessment Year 2015- 2016 by September 2015 as required under Section 10 (23C). respondent filed application for exemption later in year 2016. Appellant considered this application and granted exemption to respondent by way of its Order dated 03.11.2016 which was to be effective from assessment year 2016-2017 onwards. This order was http://www.judis.nic.in 3/6 T.C.A.No.81 of 2020 also subsequently modified by way of appellant's order dated 28.12.2017. Since respondent had not applied for exemption for Assessment year 2015-2016 and since time to file such application had expired, same could not be granted and income of respondent was therefore liable for tax during Assessment year 2015-2016. 5.The Respondent challenged Order dated 03.11.2016 that was subsequently modified on 28.12.2017 before Income Tax Tribunal. challenge was dismissed and therefore, respondent appealed before Income Tax Appellate Tribunal. said appeal was allowed by way of Income Tax Appellate Tribunal's Order dated 16.11.2018. Aggrieved over said order, appellant filed present appeal before this Court. 6.Heard Mr.J.Narayasamy, learned Senior Standing Counsel for appellant and Mr.N.V.Balaji, learned Counsel for respondent. 4/6 T.C.A.No.81 of 2020 7.There is no question of law arising for consideration as appeal is devoid of merits. However, liberty is given to Department to proceed against trustees and committee members dealing with administration and monies of temple for mismanagement and misappropriation leading to loss of public monies and Government revenue, if any. 8.With above observations, this appeal is dismissed. No costs. (N.K.K.,J.) (P.V.,J.) 18.02.2020 ay To Income Tax Officer (Exemptions), 121, M.G.Road, Nungambakkam, Chennai - 600 034. 5/6 T.C.A.No.81 of 2020 N.KIRUBAKARAN, J. and P.VELMURUGAN, J. ay T.C.A.No.81 of 2020 Dated:18.02.2020 6/6 Income-tax Officer (Exemptions), Chennai v. Arulmigu Devi Karumariamman Thirukoil