HAYANA STATE POLLUTION CONTROL BOARD vs. CENTRAL BOARD OF DIRECT TAXES AND OTHERS

Facts

The petitioner, Haryana State Pollution Control Board, filed a writ petition seeking a mandamus to direct the Central Board of Direct Taxes (CBDT) to decide its application dated 31.01.2013 for condoning delay in filing applications for exemption under Section 10(23C)(iv) and registration under Section 12A of the Income Tax Act, 1961, for Assessment Year 2006-07. The petitioner also sought to quash orders dated 29.07.2013 and 09.01.2014 rejecting its applications for registration under Section 12AA and exemption under Section 10(23C)(iv). The High Court noted that the impugned order dated 09.01.2014 had confined its consideration to accounts and expenditure without considering the petitioner's objects. Counsel for the revenue stated they wished to withdraw the impugned order and pass a fresh one.

Held

The High Court noted that the revenue's counsel, with instructions, agreed to withdraw the impugned order dated 09.01.2014. Consequently, the order dated 09.01.2014 was deemed withdrawn. The Chief Commissioner of Income Tax, Panchkula, was directed to pass a fresh order considering the petitioner-Board's objects, reasons for constitution under the Water (Prevention & Control of Pollution) Act, 1974, and Air (Prevention & Control of Pollution) Act, 1981, along with all other relevant statutory functions. The petitioner agreed not to raise objections regarding limitation. The prayer to quash the order dated 29.07.2013 rejecting registration under Section 12AA could not be considered as the matter was pending before the Income Tax Appellate Tribunal. The prayer for a mandamus to the CBDT to decide the delay condonation applications was accepted, directing the Board to decide them within three months of receiving a certified copy of the order. The writ petition was disposed of accordingly.

Key Issues

1. Whether the High Court should issue a writ of mandamus directing the CBDT to decide the petitioner's application for condonation of delay in filing applications for exemption under Section 10(23C)(iv) and registration under Section 12A of the Income Tax Act, 1961, for Assessment Year 2006-07. 2. Whether the order dated 09.01.2014 rejecting the petitioner's application for exemption under Section 10(23C)(iv) should be quashed. 3. Whether the order dated 29.07.2013 rejecting the petitioner's application for registration under Section 12AA of the Act should be quashed. Assessee's Contentions: The petitioner sought directions for the CBDT to decide its delay condonation application and to quash the rejection orders for exemption and registration. The petitioner agreed not to raise objections regarding limitation in the fresh adjudication. Revenue's Contentions: Counsel for the revenue stated they had instructions to withdraw the impugned order dated 09.01.2014 and pass a fresh order after considering the matter in its entirety, including the petitioner's objects and statutory functions.