2019 (7) TMI 241 - SCH - Income Tax

Deduction of TDS on salary u/s 192 - Nuns, Sisters, Missionaries and Fathers are bound by the Canon Law for their vows of poverty to the Christ and that they cannot be taxed in respect of the Grant-in-Aid or salary received from the State Government by respective school or educational institutions - Ld. Single Judge held that Assessee Institutions and the Missionaries, discussing the Canon Law in detail and held that no income tax can be deducted at source from the salaries and other monetary benefits paid to these persons - religious denomination under Article 26 of the Constitution of India - right to practice a religion as guaranteed under Articles 25 and 26 of the Constitution of India - Diversion of income at source - Religious binding character of the Nuns and Missionaries to make over even their salary receipts to the Institution, Church or Diocese amounts to diversion of income at source, by overriding title in favour of the Institution, Church or Diocese towards such religious obligations - HELD THAT - Learned ASG appearing for the respondents seeks four weeks time to file an affidavit. Rejoinder, if any, be filed within two weeks thereafter. List the matter on 7th August, 2019 for final disposal. In the meantime, status quo, as on today, shall be maintained by the parties.

Summary

The Supreme Court granted four weeks for the respondents to file an affidavit, with a two-week period for rejoinder. The matter is listed for final disposal on 7th August 2019, with parties instructed to maintain the status quo in the meantime.