CIT-III. LUDHIANA vs. SHREE DURGA MATA MANDIR TRUST

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ITA/172/2010HC Punjab & HaryanaPHHC01093078201006 August 2010Author: MR. JUSTICE ADARSH KUMAR GOEL,MR. JUSTICE AJAY KUMAR MITTAL2 pages
AI SummaryDismissed

What did the High Court hold?

The High Court dismissed the appeal filed by the revenue. The Court noted that when the matter was previously heard, it had inquired about any outstanding tax liability or demand against the assessee. The revenue's counsel, after obtaining instructions, stated that no demand was pending against the assessee. In light of this, the High Court concluded that the questions raised by the revenue had become academic, as the assessee would not derive any tax benefit by securing registration from an earlier date. Consequently, the Court held that the questions could not be considered substantial questions of law. Therefore, the appeal was dismissed without delving into the merits of the ITAT's decision on condoning the delay.

What were the facts?

The assessee, Shree Durga Mata Mandir Trust (Regd.), a charitable trust created on 15.11.1983, applied for registration under Section 12AA of the Income Tax Act, 1961, on 30.5.2007. The Commissioner of Income Tax rejected the application for condonation of delay in filing the application and granted registration effective from 1.4.2007. The assessee appealed to the Income Tax Appellate Tribunal (ITAT). The ITAT, in its order dated 28.5.2009, upheld the assessee's plea for registration from the date of its creation. The revenue, represented by the Commissioner Income Tax-III, filed an appeal under Section 260-A of the Act before the High Court of Punjab and Haryana against the ITAT's order.

What were the issues?

The High Court had to decide the following substantial questions of law: 1. Whether the ITAT was right in law in condoning the delay for filing the application for registration under Section 12A of the Income Tax Act, given that the CIT found no sufficient reasons for the delay. 2. Whether the ITAT was right in law in condoning a delay of 24½ years in submitting the application for registration under Section 12A by relying on the Supreme Court decision in Motilal Padampath Sugar Mills Co. Ltd. (118 ITR 326), which the revenue contended was distinguishable on facts. Contentions of the Revenue: The revenue argued that the ITAT erred in condoning the significant delay in filing the application for registration under Section 12A, as there were no sufficient reasons presented to justify the delay. Furthermore, the revenue contended that the ITAT's reliance on the Supreme Court decision in Motilal Padampath Sugar Mills Co. Ltd. was inappropriate as the facts of that case were distinguishable from the present one. Contentions of the Assessee: The judgment does not record specific contentions made by the assessee before the High Court.

Which sections of the Income-tax Act were involved?

Section 260-A,Section 12A,Section 12AA

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH. I.T.A. No.172 of 2010 (O&M) Date of decision: 6.8.2010 The Commissioner Income Tax-III -----Appellant. Vs. Shree Durga Mata Mandir Trust (Regd.) -----Respondent. CORAM:- HON'BLE MR. JUSTICE ADARSH KUMAR GOEL HON'BLE MR. JUSTICE AJAY KUMAR MITTAL Present:- Mr. Vivek Sethi, Standing Counsel for the Revenue. --- ADARSH KUMAR GOEL, J.

1.

This appeal has been preferred by the revenue under Section 260-A of the Income Tax Act, 1961 (for short, “the Act”) against the order dated 28.5.2009 in I.T.A. No.1026/CHD/2007 passed by the Income Tax Appellate Tribunal, Chandigarh, proposing to raise following substantial questions of law:- “1. Whether on the facts and in the circumstances of the case, Hon’ble ITAT is right in law condoning the delay for filing the application for registration under section 12A of the I.T.Act in view of the factual findings of the CIT to this effect that there is nothing to show that the applicant trust was prevented from making the application before the expiry date for sufficient reasons.

2.

Whether on the facts and in the circumstances of the case, Hon’ble Income Tax Appellate Tribunal was right in law in condoning the delay 24½ years in submission of application for registration u/s 12A of I.T.Act by relying on the decision of Hon’ble Supreme Court in the case of Motilal Padampath Sugar Mills Co. Ltd. (118 ITR 326) (SC) which is distinguishable on facts.”

I.T.A. No.172 of 2010

2.

The assessee is a charitable trust which was created on 15.11.1983 as per trust deed registered with the Sub Registrar, Ludhiana. It applied for registration under Section 12AA of the Act on 30.5.2007. The Commissioner rejected the prayer for condonation of delay and granted registration w.e.f. 1.4.2007 i.e. the year in which the application was made. On appeal, the Tribunal upheld the plea of the assessee for registration from the date of its creation.

3.

When the matter came up for hearing earlier, we asked learned counsel for the revenue to ascertain if there was any tax liability of the assessee in the earlier years and whether any demand was pending. After taking instructions, he states that no demand was outstanding against the assessee. In these circumstances, the questions raised are academic, as no tax benefit is taken by the assessee by registration from an earlier date.

4.

In view of above, the questions raised cannot be held to be substantial questions of law.

5.

The appeal is dismissed. (ADARSH KUMAR GOEL) JUDGE August 06, 2010 ( AJAY KUMAR MITTAL ) ashwani JUDGE 2

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