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7. As regard the first issue, the learned AR submitted that the provisions of section 10(23BBA) of the Act are applicable in the case of the assessee and therefore, the income is exempt from tax. The learned AR of the assessee has submitted that the assessee temple is managed by Endowment Commissioner as per the provisions of the Endowment Act and therefore, Endowment Temples are not liable to tax as per section 10(23BBA) of the Act.

He has further submitted that the Endowment run temple is nothing but a state government created body under the Endowment Act of the State and hence, not liable to income tax. He has further submitted that it is like an educational institution run by the Govt. in contrast with an educational institution which is registered body of individual(s) in accordance with the instrument of its creation. Since the Endowment Temples are run by the Govt. according to the Telangana Charitable and Hindu Religious and Institutions and Endowment Act, 1987, therefore, maintenance of the temples are as prescribed by the Endowment Act including the financial deficiencies which are made good by the State Govt. by way of grant and surplus, if any, spent according to the Endowment Act. The temples are administered by Govt. Officer called Executive Officer and there are no election, no general body members or meeting, no audit by the C.A. Thus, the Telangana Govt.de-facto represents all the Endowment Temples which cannot be equated with other Trusts and Societies created by the body of individuals. He has referred to section 7 of the Endowment Act and submitted that the Commissioner shall ITA Nos 1002 and 1003 of 2024 Sri Venkateswara Swamy Devastanam be a corporate sole and shall have perpetual succession and common seal and may sue or be sued in his corporate name as per section 8(1) of the Endowment Act. The administration of the charitable and Hindu Religious Institutions and Endowment is under general superintendence and control of the Commissioner. The learned AR has contended that the management and control of the Endowment Temple is rested in the Govt and not liable to income tax as per section 10(23BBA) of the Act. The end use of the funds of the Endowment Temples are at the disposal of the Govt, which it does in accordance with the Endowment Act. The Endowment Temples are liable to pay the govt. amount from the income derived by it and such contribution is required to be made annually to the endowment administration fund for actual expenditure incurred towards such services as may be prescribed u/s 65 of the Endowment Act. He has further submitted that a common good fund is created under the Endowment Act which shall be vested in the committee constituted by the Govt. and shall be administered in such manner as may be prescribed. Thus, the income of the assessee temple is exempt u/s 10(23BBA) of the Act.

8. On the other hand, the learned DR has submitted that the provisions of section 10(23BBA) of the I.T. Act are applicable only in respect of the income of the body/authority/ establishment constituted/appointed by the Central/State Govt for the administration of any one or more of the public religious or charitable trust or endowments including Math/Temples/ Gurdwara/Waqf/Churches etc., or other placed of public religious worship. Therefore, the income of such body which is constituted ITA Nos 1002 and 1003 of 2024 Sri Venkateswara Swamy Devastanam by the Central or State govt, to administer interalia Endowment Temples is exempt u/s 10(23BBA) and not the income of the temple itself. He has referred to the provisions of section 10(23BBA) and submitted that it is specifically made clear under the said proviso that nothing in this clause shall constitute to exempt from tax incomed of any Trust/Endowment or Society referred to therein. Thus, the learned DR has submitted that the provisions of section 10(23BBA) of the Act are not applicable to the temple itself/endowment temples. In support of his contention, he has relied upon the judgment of the Hon'ble Madras High Court in the case of M/s. Sri Amirthakadeswaraswamy Devasthanam Dharumapauram Adheenam vs. ACIT in W.P. Nos.29312 & 29315 of 2019 & WMP.Nos.29115 & 29111 of 2019 & 2325 of 2020 WP.No.29312 of 2019 dated 18/02/2021 and submitted that the Hon'ble High Court has held that the exemption is extended to those bodies or authorities set up under the Central/State Govt. or provincial Acts that are entrusted with the administration of public religious and charitable trust/endowment that included within their ambit viz., Temples/Math/Waqf/Churches/ Synagogue/Agiaries and other placed of public religious worship. The Hon'ble High Court has further observed that these overseeing authorities are constituted only to administer or manage the affairs of religious and charitable endowments vested in them and do not engage in any commercial activities and therefore, any income that may arise or accrue to them would not bear the nature of the taxable income for the purpose of income tax Act. Thus, the learned DR has submitted that the assessee ITA Nos 1002 and 1003 of 2024 Sri Venkateswara Swamy Devastanam temple is not entitled for the benefit of section 10(23BBA) of the I.T. Act, 1961 and liable to tax.

9. We have considered the rival contentions as well as the relevant material available on record. The assessee temple is managed by the Endowment Commissioner, an authority appointed by the State Govt. under the Endowment Act (Telangana Charitable and Hindu Religious Institutions Endowment Act, 1987). The assessee temple has not filed any return of income and claimed that it is exempt u/s 10(23BBA) of the Act on the strength that the assessee temple is managed/administered by the Govt. through the authority appointed under the Endowment Act and therefore, the de facto representation of Endowment Temples including the assessee is by the State Govt. The A.O has rejected the claim of the assessee and assessed the donations received under Hundi (Box collection) as anonymous donation u/s 69A r.w.s. 115BBC of the Act.

12.2 Accordingly, the provisions of sec 10(23BBA) of the Act are applicable only on the income of the body or authority established, constituted or appointed by the State Govt. or the Central Govt. under the Central or State or Provincial Act for administration of public religious or charitable trust or endowments and not on the income of the Endowment i.e. Mosque/Temples/Church/Gurudwara etc., The amount paid to the administrative authority or body as constituted under the Act is certainly a statutory obligation on the part of the temple to pay such amount as per the provisions of the Act and to that extent, the same will be excluded from the income of the assessee temple for the purpose of computation of total income. Even otherwise, ITA Nos 1002 and 1003 of 2024 Sri Venkateswara Swamy Devastanam the public religious trusts or temples are eligible for registration u/s 12A or 12AA of the I.T. Act, 1961 and consequently, the benefit of sections 11 and 12 of the Act and therefore, the provisions of section 10(23BBA) are not applicable to these Trusts/Temples. Respectfully following the judgment of the Hon'ble Madras High Court in the case of Sri Amirthakadeswaraswamy Devasthanam Dharumapouram Adheenam vs. ACIT (Supra), we hold that the provisions of section 10(23BBA) are not applicable on the income of the assessee temple but this provision is applicable only on the income of the administrative body or authority constituted/appointed under the Endowment Act.