Madhur Sree Madanantheswara Vinayaka Temple Vs ITO (Kerala High Court)
Board Exempt, Temple Not – HC Settles the 10(23BBA) Debate Once & For All- No Divine Exemption: Temple ≠ Board: Kerala HC Draws the 10(23BBA) Red Line; Income of Deity Not Immune: Kerala HC Says Temple Can’t Claim 10(23BBA)
No Blanket IT Exemption for Temples – Only Devaswom Board Gets 10(23BBA) Shield- Temple Income Taxable Unless 11/12 Conditions Met
Payyannur Case No Rescue – Kerala HC Clarifies Temples Not Covered by 10(23BBA)
Background & Nature of Petitions
- Multiple temples under the Malabar Devaswom Board approached the Court, either through their administrative bodies or directly as temple entities.
- Reliefs sought varied across writs:
– Challenge to assessment order (AY 2018-19).
– Claim for refund of TDS deducted on fixed deposits in banks.
– Prayer for declaration that temple income is exempt u/s 10(23BBA).
– Challenge to notices issued u/s 148A & 148.
- Core issue in all petitions: Whether the temple’s income or the administrative body’s income is eligible for exemption u/s 10(23BBA).
Arguments Raised by Petitioners
- Temples are administered under schemes framed u/s 58 of the Madras HR&CE Act, 1951, thereby making administrative bodies statutory creations.
- Therefore, it was contended that:
– The income earned in the name of the temple should be treated as income of a “body or authority established or constituted under State enactment”.
-Full exemption u/s 10(23BBA) must be granted to temple income.
