Law:

Section:

Section 10(23BBA) of the Income-tax Act, 1961 - Charitable/religious trust - Body oauthority established for administration of a public, exemption to  Petitioner-committee, constituted under Shri Jagannath Temple Act, 1955 was entitled to total exemption from tax under section 10(23BBA); neither it could be asked to file return nor any direction could be given to bank to deduct tax at source from amounts due to it petitioner. [A.Y. 2005-06]. The petitioner-committee was constituted under the Shri Jagannath Temple Act, 1955. It had been contended by the petitioner that section 10(23BBA) granted complete exemption to any income of any such body or authority established under the said Act as of the petitioner. The activities of the petitioner were concerned with the administration of a body which was solely engaged in public religious worship or in charitable purposes, and the said administration vested in a statutory committee which was set-up under the State Act. The petitioner challenged the order passed by the Income-tax Officer, to the effect that Letter No. 1015, dated 17-8-1995, issued by the Assistant Commissioner granting exemption to the petitioner under section 10(23BBA) stood withdrawn with an immediate effect. Apart from withdrawing the exemption, various other notices were issued to it under section 142 and letters to the bankers and others were issued under sections 201 and 201(1A) and notices under section 221(1) had also been issued which had been impugned in the petition. Held that, admittedly, the said order was passed changing the petitioner's status relating to grant of exemption from payment of income-tax which facility the petitioner was enjoying since 1962. Therefore, the said order definitely visited the petitioner with civil consequences and affected its right in so far as its income was concerned. The principles of natural justice was, therefore, attracted to the situation. Admittedly, the said order had been passed without giving the petitioner an opportunity of hearing. Any post decisional hearing given to the petitioner would not comply with the requirement of natural justice. Further, in the instant case the petitioner was a body…

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