Madhur Temple Body’s Income Tax Exemption Claim Moved from Devaswom to IT Bench: Kerala HC

Petitioner is the administrative body of Madhur Sree Madanantheswara Vinayaka Temple, Kasaragod, comprising a hereditary trustee &  non-hereditary trustees, functioning under a scheme framed by the Deputy Commissioner, Malabar Devaswom Board, as per Section 58 of the Madras Hindu Religious &  Charitable Endowments Act, 1951. The temple is a controlled institution under the Malabar Devaswom Board.

Petitioner challenged the  Assessment order, Computation sheet & Demand notice u/s 156, all dated 27.03.2023 & multiple show cause &  statutory notices issued in July–August 2023. They sought a declaration that Petitioner, being the administrative body of Madhur Sree Madanantheswara Vinayaka Temple, constituted as per   the provisions of Madras Hindu Reglious & Charitable Endowments Act, 1951, is entitled for unconditional exemption for its entire income, from the levy of income tax under Section 10(23BBA) of the Income Tax Act.

High Court observed that in A.A. Gopalakrishnan v. Cochin Devaswom Board [(2007) 7 SCC 482] a Three-Judge Bench of  the Apex Court held that the properties of deities, temples & Devaswom Boards, require to be  protected & safeguarded by their trustees/ archakas/shebaits/employees. Instances are many  where persons entrusted with the duty of managing & safeguarding the properties of temples, deities & Devaswom Boards have usurped & misappropriated such properties by setting up false  claims of ownership or tenancy or adverse possession. This is possible only with the passive or  active collusion of the authorities concerned. Such acts of ‘fence eating the crops’ should be dealt  with sternly. The Government, members or trustees of boards/trusts, & devotees should be  vigilant to prevent any such usurpation or encroachment. It is also the duty of courts to protect &  safeguard the properties of religious & charitable institutions from wrongful claims or  misappropriation.