Someshwara Laxmi Narasimha Swamy Temple Palakurthy Vs ITO (ITAT Hyderabad)
Temple’s Gross Donations cannot be taxed without expenses – 12AB Rejection & Gross Taxation both Set Aside & remanded
In this case four appeals were filed by Assessee temple-three against reassessment orders & one against rejection of registration u/s 12AB.
For AYs 2015-16, 2016-17 & 2018-19, CIT(A) had dismissed appeals as time-barred by 11–14 days. The temple explained that being under Government Endowment administration, delays occurred due to transfer of Executive Officer & non-receipt of email notices, since the temple lacked computer/internet facilities. The Tribunal accepted the explanation, held that delay was for bona fide reasons & condoned the delay.
For AYs 2015-16, 2016-17 & 2018-19, CIT(A) had dismissed appeals as time-barred by 11–14 days. The temple explained that being under Government Endowment administration, delays occurred due to transfer of Executive Officer & non-receipt of email notices, since the temple lacked computer/internet facilities. The Tribunal accepted the explanation, held that delay was for bona fide reasons & condoned the delay.
On merits, it noted that AO had taxed gross hundi/donation receipts without allowing expenditure, despite applicability of exemption u/s 10(23BBA) for temples managed by Government. Relying on coordinate bench ruling in Zoos & Parks Authority of Telangana vs. DCIT (ITA Nos. 114–118/Hyd/2025), tribunal held that only net income after expenses can be taxed if exemption is denied. Accordingly, matters were restored to AO for de novo assessment after verification of books.
