SETH SHRI NIWAS CHARITY TRUST vs. COMMISSIONER OF INCOME TAX JA

Facts

The petitioner, Seth Shri Niwas Charity Trust, through its trustee Shri Mahesh Kumar Kandoi, filed a writ petition in 2004 before the Rajasthan High Court, Jaipur Bench. The petition challenged an order dated February 5-6, 2004, passed by the Commissioner of Income Tax (CIT), Jaipur-II. This order had rejected the trust's application for the renewal of exemption under Section 80G(5) of the Income Tax Act, 1961, for a period of five years. The writ petition was filed in 2004, and no interim protection was granted to the petitioner during its pendency. Due to the passage of time, the prayer for renewal of exemption has become infructuous.

Held

The High Court held that the writ petition has become infructuous due to the efflux of time, as the period for which the renewal of exemption under Section 80G(5) of the Income Tax Act, 1961, was sought has expired during the pendency of the petition. The Court disposed of the petition on this basis. It was further clarified that if the petitioner applies for fresh exemption or a subsequent renewal, the department shall decide such application in accordance with the law, without being influenced by the observations made in the impugned order dated February 5-6, 2004. No decision was made on the merits of the original rejection order.

Key Issues

1. Whether the writ petition challenging the order rejecting the renewal of exemption under Section 80G(5) of the Income Tax Act, 1961, is maintainable when the period for which the renewal was sought has expired during the pendency of the petition. Assessee's Contention: The assessee, Seth Shri Niwas Charity Trust, filed the petition challenging the CIT's order. The specific arguments made by the assessee are not recorded in the judgment. Revenue's Contention: The respondent, Commissioner of Income Tax, Jaipur-II, is the authority whose order is under challenge. The specific arguments made by the revenue are not recorded in the judgment.