DY. COMMISSIONER OF INCOME TAX(EXEMPTIONS)-2(1),MUMBAI, MUMBAI vs. SHREE KASHI MATH SAMSTHAN VARANASI, MUMBAI
IN THE INCOME-TAX APPELLATE TRIBUNAL “E” BENCH,
MUMBAI
BEFORE SHRI NARENDER KUMAR CHOUDHRY, JUDICIAL MEMBER
&
SHRI PRABHASH SHANKAR, ACCOUNTANT MEMBER
ITA 1451/MUM/2025
(A.Y. 2017-18)
Deputy
Commissioner of Income
Tax
(Exemptions)–
2(1), 608, 6th Floor, MTNL,
Peddar
Road, Cumbala
Hill
Mumbai–400026, Maharashtra v/s.
बनाम
Shree Kashi Math Samasthan
Varanasi,
Regd.
Office
85
Walkeshwar Sri Kashi Math, 85,
Banaganga
Road,
Walkeshwar,
Mumbai – 400 006, Maharashtra
स्थायी लेखा सं./जीआइआर सं./PAN/GIR No: AAETS5451R
Appellant/अपीलार्थी
..
Respondent/प्रतिवादी
Appellant by :
Shri Srinivas Kamath,AR
Respondent by :
Shri Hemanshu Joshi (Sr. DR)
Date of Hearing
24.04.2025
Date of Pronouncement
28.04.2025
आदेश / O R D E R
PER PRABHASH SHANKAR [A.M.] :-
The present appeal arising from the appellate order dated
30.12.2024 is filed by the Revenue against the order passed by the Learned
Commissioner of Income-tax,
Appeal/ADDL/JCIT(A)-4,
Chennai [hereinafter referred to as “CIT(A)”] pertaining to assessment order u/s. 143(3) of the Income-tax Act, 1961 [hereinafter referred to as “Act”] dated 15.12.2019 as passed by the ACIT, Exem., Circle-2, Mumbai for the Assessment Year [A.Y.] 2017-18. P a g e | 2
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Shree Kashi Math Samasthan Varanasi
The grounds of appeal are as under:- 1. Whether on the facts and circumstances of the case and in law, the NFAC has erred in allowing the donation of Rs. 1,74,50,201/-under head ‘Hundi Kanika’ as corpus donation u/s 11(1)(d) of the I.T. Act, ignoring the fact that the assessee trust had failed to substantiate that the donations are received with specific directions from the donor. 2. Whether on the facts and circumstances of the case and in law, the NFAC has erred in holding that by specifying on the Hundi that the Kanika would be for corpus of the Samsthan, ignoring the fact that the such mentioning by the assessee trust does not satisfy the conditions mentioned u/s 11(1)(d) of the Act. 3. Whether on the facts and circumstances of the case and in law, the NFAC has erred in allowing the donation of Rs. 84,32,908/-under head ‘moolnidhi’ as corpus donation u/s 11(1)(d) of the I.T. Act, ignoring the fact that the assessee trust had failed to substantiate that the donations are received with specific directions from the donor. 4. Whether on the facts and circumstances of the case and in law, the NFAC has erred in holding that the offerings made by the devotees are made in specific platter and is specifically kept for ‘moolnidhi’ i.e. corpus, ignoring the fact that the such mentioning by the assessee trust does not satisfy the conditions mentioned u/s 11(1)(d) of the Act. 3. Facts of the case are that the assessee Trust, is an ancient Religious Institution which is registered under Section 12A of the Act and also approved u/s 10(23c)(v).For the relevant year the assessee had returned Nil income. By his order the ld. AO treated the sum of Rs 2,58,83,109/-, being ‘Padapooja Kanika’ and ‘Hundi Kanika’ claimed as donation by the assessee towards corpus as normal donation and added to gross income denying exemption u/s 11(1)(d) of the Act. 4. Ground nos.1 and 2 pertain to the donations received by way of HUNDI KANIKA of Rs.1,74,50,201/- which was treated as income on P a g e | 3 A.Y. 2017-18
Shree Kashi Math Samasthan Varanasi the ground that the letters of the donors with specific direction for corpus donation were not in the possession of the assessee. In the subsequent appeal before the ld.CIT(A), the assessee submitted that since the number of devotees are huge and they are visiting the Maths to seek to fulfil their aspirations, it is impracticable to obtain details from each devotee. Hence, it is clearly written on the Hundi in which Kanikas were/are offered by the devotees that the donation that is made is towards the Corpus of the Samsthan. It was observed that Hundi kanika are basically the offerings made by the devotees to Hundi. Usually, a hundi is kept in the temple premises with closed surface wherein the devotees can come and offer their money into it. In this process, as claimed by the assessee, it is highly impractical to obtain the details of each of the devotee as pointed out by the AO. Since it had furnished details that it has been specified on the Hundi that the Kanika would be for the Corpus of the Samsthan, it is implicit that when kanika was collected from a devotee he was appraised of the object for which such kanika was being donated by him and unmistakably indicated that it is his specific direction and his desire that his offering shall form part of the Corpus. Further, it was also stated that these voluntary contributions specifically offered by the devotees in Hundi, by tradition and practice, have been treated by the Samsthan as donation to the P a g e | 4
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Shree Kashi Math Samasthan Varanasi corpus for all these years and the Income Tax Department has also accepted this stand for all the earlier years. Considering these facts and case laws relied on by the assessee, the addition made in this regard was deleted by the ld.CIT(A).
Before us, the assessee reiterated the same submission as before the ld.CIT(A). It is stated that the Branch Maths of Shree Kashi Math Samsthan, Varanasi are bound to keep at least one Hundi in front of the Deity for Mooladhana Kanike (Corpus Donation), for utilizing the said Kanike (Corpus Donation) amount for capital expenditure and major periodical and non-recurring expenditure. This is warranted in terms of the custom and usage, prevailing in the Samsthan, from time immemorial. As per the customs and traditions followed by the Samsthan, the Math is bound to conduct at periodical intervals various religious rituals like Homa, Havana and different poojas etc. to meet the spiritual requirements of the Math and the devotees. Repairs and maintenance of building, various ornaments, Vahana such as Pallike (Palanquin), Ratha (Chariot) etc and various rituals followed are also required to be conducted. These rituals/ repairs etc., require huge expenditure and they are not part of the daily rituals/repairs of the Branch Maths. So, the system of keeping Hundis in Maths, as dictated
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Shree Kashi Math Samasthan Varanasi by the wi om of our revered senior Gurus in the Guru Parampara, who prescribed for providing of Mooladhana Hundi (Corpus Fund Hundi) has been in vogue from the earliest times. Accordingly, such Hundis are kept in the Maths. Further, since the number of devotees are huge and they are visiting the Maths to seek to fulfil their aspirations, it is impracticable to obtain details from each devotee. Hence, it is clearly written on the Hundi in which Kanikas were offered by the devotees, that the donation that is made is towards the Corpus of the Samsthan. A few sample copies of the photographs which were shown to the AO were furnished which shows the system prevailing in the Samsthan. Since, it has been specified on the Hundi that the Kanika would be for the Corpus of the Samsthan, it is implicit that when kanika was collected from a devotee he was appraised of the object for which such kanika was being donated by him. Otherwise, he has alternative options to give his offerings as Guru Kanika, Deity Kanika, Seva Kanika, General Donations etc. This act of the donor of putting the contribution to the Hundi where it is stated that it is towards Corpus, unmistakably indicates that it is his specific direction and his desire that his offering shall form part of the Corpus. These Hundis are opened periodically in the presence of the two independent witnesses by the Vyavasthapak Committee members. At the time of opening of Hundi Box, the proceedings are recorded and signed
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Shree Kashi Math Samasthan Varanasi by all the members present, accordingly the same has been properly recorded in the books of accounts and is banked on the immediate next available opportunity.
5.1 It is further stated that the manner in which specific direction is to be made for Corpus Donation has not been laid down in the Act or in the Income Tax Rules, 1962. There is no method or mode prescribed by law of giving such directions. These voluntary contributions specifically offered by the Devotees in Hundi, by tradition and practice, have been treated by the Samsthan as donation to the corpus for all these years and the Department has also accepted this stand for all the earlier years. There is no reason as to why the same should be taken as taxable income for this year when there is no change either in the objects or in the system of accounting or in the treatment of donation as compared to earlier years. There has been no change in facts and the treatment in accounts being consistently followed over years and accepted by the Department.
Reliance is placed on AddI/JCIT(Appeals)-1,
Chandigarh dated
25.11.2024, order
No.ITBA/APL/S/250/2024-25/1070610590(1),CIT vs.
Bhartiya
Samskriti Vidyapith Trust ITA Nos. 278 to 282/ Bangalore/2013 dt.
13.11.2013(Kar), ITAT Mumbai Bench (SMC III) in the case of ITO Vs
Diamond Jubilee Trust ITA Nos. 1955 and 1956(MUM) of 1998, March
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Shree Kashi Math Samasthan Varanasi
5, 2001 (2002 120 Taxmann 86 (MUM.) (MAG.), ITAT Agra Bench in the case of ITO (Exemptions), Agra Vs M/s Shri Girraj Sewak Samiti,
Danghati, Goverdhn Mathura ITA Nos. 30 to 33/Agra/2017 dt.
09.03.2018,Hbl. ITAT Chandigarh Bench in the case of Shree Mahadevi
In the year under consideration, the AO has taken a divergent view though he did not bring on record any distinguishing feature so as to justify adopting such view. Though the principles of res judicata is not attached since each assessment year us separate in itself, there ought to be uniformity in treatment and consistency when the facts and the circumstances are identical. Non applicability of rule of res judicata in income tax matters should not unnecessarily disturb rule of consistency to be followed on factual matters repeated from assessment year to assessment year. The chord of consistency can be cut off only if facts are substantially different from earlier years, capable of leading to a P a g e | 8
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Shree Kashi Math Samasthan Varanasi different findings. Each assessment year being a unit, what is decided in one year may not apply to the following year but when a fundamental aspect permeating through different assessment years has been found as a fact one way or other and parties have followed that position to be sustained by not challenging the order, it will not be appropriate to allow such position to be challenged in a subsequent year and rule of consistency would apply in such cases. We therefore, hold that the AO was not justified in treating the donations as income of the assessee trust. The appellate order is accordingly upheld allowing the grounds of appeal of the assessee.
7. Ground nos.3 and 4 relate to similar donation known as PADAPOOJA KANIKA Rs.84,32,908/-which was also treated as income u/s 11(1)(d) of the Act by the AO. In the subsequent appeal, the assessee submitted before the ld.CI(A) that the offerings for the Padapooja are made by the devotees in a big platter specifically kept for contributing towards “Moolanidhi” i.e. Corpus Fund, of the Samsthan which is a capital receipt. The said amount has been taken as donation towards the Corpus of Shree Samsthan and accordingly recorded in the books of accounts. The ld.CIT(A) observed that padapooja kanika are the offerings made to the Swamiji of the temple by the devotees when they
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Shree Kashi Math Samasthan Varanasi visit the temples. As stated by the appellant, it is noted that on the platter in which Padapooja Kanika is offered it is clearly written that the donation is made towards the Moolanidhi i.e. Corpus of the Samsthan.
Since, the number of Devotees are huge and they are visiting Swamiji to seek to fulfill their aspirations, it is impracticable to obtain letter from each Devotee. This act of the donor of putting the contribution to the Platter where it is stated that it is towards Corpus, unmistakably indicates that it is his specific direction and his desire that his offering shall form part of the Corpus. Further it is also noted that the manner in which specific direction is to be made for Corpus Donation has not been laid down in the Act. Further, these voluntary contributions specifically offered by the Devotees as paadapooja kanika, by tradition and practice, have been treated by the Samsthan as donation to the corpus for all these years and the Department has also accepted this stand for all the earlier years. Hence, considering these facts and case laws relied on by the assessee, the addition made in this regard was deleted by the ld.CIT(A).
8. Before us, the ld.AR has made a detailed submission stating that Padapooja Kanika represents offerings made by the devotees for the Padapooja to the Swamiji, which signifies paying obeisance to the Guru
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Shree Kashi Math Samasthan Varanasi and invoking the Divine Blessings. The Samsthan is a Dharmapeetha of GSB community headed by a Spiritual Guru, the Matadhipathi to propagate the tenets of Sanatana Dharma and foster spiritual knowledge for the Dharmic upliftment and spiritual progress of the community.
The amount so collected every day at the Head Quarters at the camp of His Holiness Swamiji has, by tradition, been treated as donation to the Corpus Fund for developmental work of the Samsthan and to utilize the income accruing from the said Moolanidhi i.e. Corpus Fund for purposes of non-recurring expenditure. Moreover, on the platter in which Padapooja Kanika is offered it is clearly written that the donation is made towards the Moolanidhi i.e. Corpus of the Samsthan. Since, the number of devotees are huge, it is impracticable to obtain letters from each Devotee. This act of the donor of putting the contribution to the Platter where it is stated that it is towards Corpus, unmistakably indicates that it is his specific direction and his desire that his offering shall form part of the Corpus.
8.1 It is further stated that the manner in which specific direction is to be made for Corpus Donation has not been laid down in the Act or in the Income Tax Rules, 1962. There is no method or mode prescribed by law of giving such directions. These voluntary contributions specifically offered by the devotees, by tradition and practice towards the P a g e | 11
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Shree Kashi Math Samasthan Varanasi corpus of the Samsthan, have been treated by the Samsthan as donation to the corpus for all these years and also the Income Tax Department has also accepted this stand for all the earlier years. There is no reason as to why the same should be taken as Taxable Income for this year.
There has been no change in facts and the treatment in accounts being consistently followed over years and accepted by the Department. He has placed on reliance on several case laws which are already discussed in para 5 (supra) while adjudicating ground nos.1 and 2. 8.2 It is also submitted further that in own case of the assessee for the A.Y. 2015-16 order u/s.250 passed by the AddI/JCIT (A)-1,
Chandigarh in which donation received towards corpus for the said purpose has been considered and also in the order u/s 250 passed by the Addl/JCIT(Appeals)-4, Chennai dated 30.12.2024 and subsequent years orders being completed under section 143(3) without making additions to the said issues. This proves that the Department has accepted the manner in which the donations have been treated consistently over the years. It is contented that in view of the Supreme Court decision in the case of Radhasoami Satsang Vs. CIT 193 (ITR) 321, the matter should be allowed in the favour of the Respondent and the Department appeal be dismissed.
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Shree Kashi Math Samasthan Varanasi
We have carefully considered the above facts. We do not find any infirmity in the appellate order. Our orders in para 6 above w.r.t. Handi donations are applicable to the facts of the case in these grounds as well. The appellate order is upheld and the grounds of the assessee are allowed. 10. In the result, the appeal is allowed. Order pronounced in the open court on 28/04/2025. NARENDER KUMAR CHOUDHRY PRABHASH SHANKAR (न्याययक सदस्य /JUDICIAL MEMBER) (लेखाकार सदस्य/ACCOUNTANT MEMBER)
Place: म ुंबई/Mumbai
ददनाुंक /Date 28.04.2025
Lubhna Shaikh / Steno
आदेश की प्रयियलयि अग्रेयिि/Copy of the Order forwarded to :
1. अपीलार्थी / The Appellant
2. प्रत्यर्थी / The Respondent.
3. आयकर आयुक्त / CIT
4. विभागीय प्रविविवि, आयकर अपीलीय अविकरण DR, ITAT,
Mumbai
5. गार्ड फाईल / Guard file.
सत्यावपि प्रवि ////
आदेशानुसार/ BY ORDER,
उि/सहायक िंजीकार (Dy./Asstt.