Venkateswara Swamy Devasthanam Vs ITO (Exemption) (ITAT Hyderabad)
Govt-Managed Temple fails Sec. 10(23BBA) test- Exemption meant only for Administrative Authority”; Section 10(23BBA) Exemption not available to Temple, Only to Govt. Administrative Body
Assessee, Sri Venkateswara Swamy Devasthanam, a temple managed by the Endowment Commissioner under the Telangana Charitable & Hindu Religious Institutions & Endowments Act, 1987, did not file returns of income for AYs 2013-14 & 2016-17. AO taxed Hundi (donation box) collections as anonymous donations u/s 115BBC & denied exemption u/s 11 & 12 due to non-filing of return & audit report.
Before the Tribunal, there was a delay of 160 days in filing the appeal, explained as due to pendency of writ petitions before the Hon’ble High Court. The High Court, vide order dated 09/09/2024, permitted Assessee to avail the statutory remedy before the ITAT & clarified that “the time consumed before this Court shall not be counted for the purpose of limitation before the Tribunal”. Delay was condoned.
The issues for adjudication were:
- Whether the assessee temple is entitled to exemption u/s 10(23BBA) of the Income-tax Act.
- Whether Hundi collections can be taxed as anonymous donations u/s 115BBC(1) or only on surplus basis under normal provisions.
- Whether exemption u/s 11 & 12 can be allowed despite non-filing of return & Form 10B audit report.
Assessee contended that the temple is managed by the Endowment Commissioner, a State Government-created body under the Endowment Act, & thus income is exempt u/s 10(23BBA). Hundi donations are not anonymous donations taxable u/s 115BBC, relying on CIT v. Shree Sai Baba Sansthan Trust – Shirdi (Bom HC, 2024).
