Income Tax Return not filing by Temple Committee

One temple in our locality, between the registered members there is two group and they having legal tussle in court, due to the legal litigation the court freeze the bank account of the temple, 

So the group who are now manage the temple not able compliance the all the statutory compliance with the Government, like income tax return filling or other things, is there any problem in future from Income tax department or other bodies and what are the procedure to assess the bank account.

I think the temple registered under registered under societies act or association of person.

please advise


Replies (2)
Quick Summary
A temple committee is struggling to file income tax returns and meet other statutory compliances because its bank account has been frozen due to a legal dispute between registered members. The Income Tax Department may initiate assessments under Section 147 if returns are not filed, especially with significant bank transactions visible in Form 26AS or AIS. It's advisable for the temple to file its returns, get accounts audited (claiming exemption under Section 11 with 12A registration), and maintain proper records. For issues concerning the frozen bank account, consulting a lawyer is recommended.

The similiar case has been faced by one of our client, Ill try to give some inputs regarding your query.

The first query you are asking is , regarding Income Tax assessment, definitely the Income tax department will start the assessment under section 147. If the return of income has not been filed and if there is a huge transaction In the trusts bank account. On the basis of transactions reported in form 26 or AIS income tax dept will issue the notice. 

So to tackle this issue , trust should file its return of income, get its accounts audited. (Can claim exemption under section 11 after obtaining 12A registration certificate)

And apart from IT and GST dept will also send notice regarding bank transaction, if the trust has taxable income such as rent from commercial complex, Tendor income from vocant land (Fest or Jatre), business income etc. So it's better to prepare books of accounts and should maintain all the records like receipts and vouchers etc. And should get it's accounts audited. 

And second issue regarding the freeze of bank account you need to consult a lawyer in this matter.  Thank you. 

Thank you for the valuable guidance sir.

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