The exemption under Section 10(23BBA) of the Income Tax Act applies solely to bodies established under statutes, not to the income of public religious institutions like temples.

JUDGMENT :

ZIYAD RAHMAN A.A., J.

act." data-para-type="facts" id="1">1. In all these writ petitions, the petitioners are either administrative bodies of various temples under the Malabar Devaswom Board or the temples represented by their administrative bodies. In all these cases, the respective petitioners are seeking the benefit of Section 10(23BBA) of the Income Tax Act , which contemplates for a complete exemption from the Income Tax.

act." data-para-type="facts" id="2">2. In W.P.(C).No.27452 of 2023, the petitioner is the administrative body of a temple and challenge raised in this writ petition is against Ext.P11 order of assessment passed against the temple, pertaining to the assessment year 2018-2019. In other writ petitions, the petitioners are seeking refund of the TDS already collected from the deposits made in the name of the respective temples in various financial institutions. In some cases, the petitioners have sought for declaration that the income received by them are entitled to be exempted under Section 10(23BBA) of the Income Tax Act.

3. Counter affidavits have been filed by the respondents disputing the averments contained in the writ petitions and opposing the reliefs sought.

4. I have heard the respective learned counsel for the petitioners and the respective learned standing counsel for the respondents.

5. The main contention raised on behalf of the petitioners is by placing reliance upon the various provisions contained in the Madras Hindu Religious and Charitable Endowments Act, 1951 (hereinafter called HR & CE Act), and also the relevant provisions, including Section 10(23BBA) of the Income Tax Act. HR&CE Act is relied on by the petitioners, in view of the fact that, all the temples before this Court are under the Malabar Devaswom Board, which was created under the said statute and all the administrative bodies in charge of the affairs of these temples, are constituted as per the scheme created under the HR&CE Act. Thus, the specific contention raised by the petitioners is that, in all these cases, the petitioners are entitled to the exemption contemplated under the Act, being a body or authority constituted or established under a State enactment.

6. On the other hand, the standing counsel appearing for the Income Tax, opposed the said contention by pointing out that, going by the statutory stipulations contained under Section 10(23BBA) of the Act, the petitioners are not entitled to get any exemption, in view of the fact that, what is exempted is the income of the bodies established under the statute and not the income of the temples as such. Strong reliance was placed on the proviso to Section 10(23BBA), which, according to them, is clarificatory in nature and it confirms the said view.

7. I have carefully gone through the records and examined the relevant statutory provisions. Before, going into the questions that arise in these cases, it is profitable to examine the relevant statutory provisions. Section 10 of the Income Tax Act, provides for the incomes not included in the total income. What is relevant for this case is Sub section (23BBA) of section 10, which reads as follows:

“(23BBA): any income of any body or authority (whether or not a body corporate or corporation sole) established, constituted or appointed by or under any Central, State or Provincial Act which provides for the administration of any one or more of the following, that is to say, public, religious or charitable trusts or endowments (including maths, t