| Case ID |
388f1468-089e-4137-bf15-45a59935cf70 |
| Body |
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| Case Number |
IT REFERENCE CASE No. 1 OF 1980 |
| Decision Date |
Nov 10, 1983 |
| Hearing Date |
|
| Decision |
The court held that the activities of delivering sermons and preaching the Bible by the church are integral to its vocation, and thus the church is entitled to claim depreciation on its building. The previous decision by the Tribunal was overturned, affirming that the church operates under the definition of 'profession' as including 'vocation' as per the Income-tax Act. The court also referenced the case of P. Krishna Menon v. CIT to support its ruling, emphasizing that the nature of the church's activities aligns with those considered a vocation, thus justifying the depreciation claim. |
| Summary |
In the case of All Saints Church v. Commissioner of Income Tax, the Karnataka High Court addressed the issue of whether a church's activities qualify as a vocation under the Income-tax Act, 1961. The court examined the church's claim for depreciation on its building, which the Income Tax Officer had disallowed, citing that the church was not engaged in any profit-generating business. However, the Appellate Authority reversed this decision, leading to an appeal by the department to the Tribunal. The Tribunal ruled against the church, prompting further appeal to the High Court. The High Court concluded that the sermons and preaching conducted by the church are integral to its operations and thus constitute a vocation, allowing the church to claim depreciation. This case highlights the intersection of religious activities and tax law, establishing a precedent for how similar entities might claim deductions in the future, emphasizing the importance of recognizing religious institutions' operational frameworks in legal contexts. |
| Court |
Karnataka High Court
|
| Entities Involved |
Commissioner of Income Tax,
All Saints Church
|
| Judges |
K. Jagannatha Shetty,
S.R. Rajasekhara Murthy
|
| Lawyers |
K.R. Prasad,
K. Srinivasan,
H. Raghavendra Rao
|
| Petitioners |
All Saints Church
|
| Respondents |
Commissioner of Income Tax
|
| Citations |
1984 SLD 371,
(1984) 145 ITR 786
|
| Other Citations |
P. Krishna Menon v. CIT [1959] 35 ITR 48 (SC)
|
| Laws Involved |
Income-tax Act, 1961
|
| Sections |
28(ii),
32
|