ANNIE THAYIL’S RELIGIOUS AND CHARITABLE TRUST, vs. THE COMMISSIONER OF INCOME TAX (EXEMPTION),

In response to the said show cause notice, the petitioner has filed a reply vide Exhibit P10 dated 15.03.2023. The petitioner, in its reply, states that the petitioner is a Charitable Trust, for which registration has been obtained under Section 12AA of the Act, 1961 with effect from the assessment year 2017-2018. It is also admitted that they have not filed any return prior to the assessment year 2017- 2018. It was further stated that since the petitioner has been granted registration under Section 12AA of the Act, 1961, the benefits of exemption are also available to them for the assessment year 2016- 2017. 4. After considering the said reply, Exhibit P11 order under clause (d) of Section 148A of the Act, 1961 was issued by the second respondent. The order would disclose that the petitioner’s reply was duly considered. However, it was held by the authority that on a careful consideration of the reply, it could be seen that the assessee themselves admitted that they had not filed their ITR for the assessment year 2016-2017 and no valid reasons were provided for not filing the returns upto the year 2017-2018. The petitioner also did not provide any details relating to the transaction of the immovable property other than the agricultural land disposed of by the assessee during the financial year 2015-2016 relevant to the assessment year : 4 : 2016-2017. 5. It has also been stated in Exhibit P11 that the applicability of exemption/taxability of transaction performed by the assessee and the averments made by the assessee are not supported with any proof or details. The authority, after considering the reply and the facts of the case, concluded that the taxability/exemption applicable to the property transaction could be checked only if ITR Is filed and therefore, a notice under Section 148 is issued suggesting that income chargeable to the tax to the tune of Rs.61,81,600/-had escaped assessment in the case of the assessee for the assessment year 2016-2017. Thereafter, the second respondent has issued Exhibit P12 notice under Section 148 of the Act, 1961. 6. However, the petitioner, instead of filing ITR in pursuance to Exhibit P12 notice under Section 148 of the Act, 1961, has approached this Court. Considering the aforesaid facts and after perusing Exhibit P11 order passed under Section 148A(d) of the Act, 1961, I find that there is no violation of the statutory prescriptions by the authority, while issuing a notice under Section 148A of the Act, 1961 to the petitioner. Unless the petitioner files a return and the same is accepted by the assessing authority, an exemption as claimed by the petitioner cannot be granted.

The petitioner should participate in the assessment proceedings in pursuance to Exhibit P12 notice issued under Section 148 of the Act, 1961. The petitioner is permitted to file ITR within seven days from today, in compliance with Exhibit P12 notice issued under Section 148 of the Act, 1961 and may make a claim regarding exemption as permitted under law. The assessment proceedings shall be finalised by the assessing authority in accordance with law expeditiously. With the above observations and directions, instant writ petition stands finally disposed of. DINESH KUMAR SINGH, JUDGE.