ATMA BODHODAYA SANGHAM SREE SUBHANANDA TRUST vs. THE INCOME TAX OFFICER

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WP(C)/39353/2023HC KeralaKLHC01088481202329 November 2023Author: HONOURABLE MR. JUSTICE D. K. SINGH5 pages
AI SummaryRemanded

What did the High Court hold?

The High Court disposed of the writ petition with directions. It noted the submission by the revenue that the Principal Commissioner (Exemption) is the competent authority to condone the delay, but the application was filed before the Principal Commissioner (2nd respondent). Therefore, the Court granted liberty to the petitioner to file a fresh application before the Principal Commissioner of Income Tax (Exemption) within ten days. The Court directed that if such an application is filed, the Principal Commissioner of Income Tax (Exemption) should consider it on its merits for condoning the delay in filing the return for assessment year 2022-23 and pass an order expeditiously. Additionally, the Court directed the 4th respondent, Commissioner of Income Tax (Appeals), to expeditiously consider the petitioner's application for a stay against the intimation under Section 143(1).

What were the facts?

The petitioner, Atma Bodhodaya Sangham Sree Subhananda Trust, is a charitable trust registered under Section 12AA of the Income Tax Act, 1961. It filed its income tax return for assessment year 2022-23 on December 19, 2022, which was beyond the prescribed time limit under Section 139. Consequently, the deduction claimed by the petitioner was denied, and a demand of Rs. 3,38,68,150/- was raised in the assessment order under Section 143(1). The petitioner had previously filed an application dated December 14, 2022, under Section 119(2)(b) before the 2nd respondent, the Principal Commissioner, on December 22, 2022, seeking condonation of the delay.

What were the issues?

1. Whether the application filed by the petitioner under Section 119(2)(b) for condonation of delay in filing the return for AY 2022-23 was filed before the competent authority? Assessee's Contention: The petitioner filed an application under Section 119(2)(b) seeking condonation of delay in filing its return. (No specific argument recorded regarding the authority, but the filing itself implies seeking condonation). Revenue's Contention: The learned Senior Standing Counsel for the Income Tax Department submitted that the Principal Commissioner (Exemption) is the competent authority to condone the delay, but the application was filed before the Principal Commissioner, who is the 2nd respondent. This implies the application was not filed before the correct designated authority.

Which sections of the Income-tax Act were involved?

Section 12AA,Section 139,Section 119(2)(b),Section 143(1)

AI-generated summary — verify with the full judgment below

Cause title — parties, addresses and appearances
IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE DINESH KUMAR SINGH WEDNESDAY, THE 29TH DAY OF NOVEMBER 2023 / 8TH AGRAHAYANA, 1945 WP(C) NO. 39353 OF 2023 PETITIONER: ATMA BODHODAYA SANGHAM SREE SUBHANANDA TRUST 1, CHERUKOL, MAVELIKKARA, ALAPPUZHA DISTRICT, REPRESENTED BY ITS SECRETARY, SWAMI GEETHANANDAN, PIN – 690 104. BY ADVS. HARISANKAR V. MENON MEERA V.MENON R.SREEJITH K.KRISHNA PARVATHY MENON RESPONDENTS: 1 THE INCOME TAX OFFICER EXEMPTION WARD - ALAPPUZHA, AAYAKAR BHAVAN, ALAPPUZHA, PIN – 688 011. 2 THE PRINCIPAL COMMISSIONER INCOME TAX DEPARTMENT, C.R. BUILDING,I.S. PRESS ROAD, ERNAKULAM, KOCHI, PIN – 682 018. 3 CENTRALIZED PROCESSING CENTER 1ST FLOOR, BERATENAAGRAHARA BEGUR, HOSUR ROAD, UTTARAHALLIHOBLI, BENGALURU, PIN – 560 100. 4 COMMISSIONER OF INCOME TAX (APPEALS) NATIONAL FACELESS APPEAL CENTRE, DELHI, PIN – 110 001. 5 THE ASST. COMMISSIONER OF INCOME TAX EXEMPTION CIRCLE,AAYAKAR BHAVAN, KAWDIAR P.O.,THIRUVANANTHAPURAM, PIN – 695 003. OTHER PRESENT: JOSE JOSEPH-SR.SC THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 29.11.2023, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C) NO. 39353 OF 2023 2 DINESH KUMAR SINGH, J. -------------------------------------------- WP(C) NO. 39353 OF 2023 -------------------------------------------- Dated this the 29th day of November, 2023

J U D G M E N T

1.

As per the averments in the writ petition, the petitioner is a charitable trust registered under the provisions of Section 12AA of the Income Tax Act, 1961. The petitioner has filed return of its income on 19.12.2022 for the assessment year 2022-23. As return has been filed beyond the time prescribed under Section 139 of the Income Tax Act, the deduction claimed by the petitioner has been denied and a demand of Rs.3,38,68,150/- has been made in the assessment order under Section 143 (1). In the meantime, the petitioner has filed an application dated 14.12.2022 under Section 119 (2)(b) in Ext.P2 and presented before the 2nd

WP(C) NO. 39353 OF 2023 3 respondent on 22.12.2022. 2. Mr. Jose Joseph, learned Senior Standing Counsel for Income Tax Department however, submits that the Principal Commissioner (Exemption) is the competent authority to condone the delay, but the application has been filed before the Principal Commissioner, 2nd respondent.

3.

Considering the aforesaid facts, the present writ petition is disposed of with liberty to the petitioner to file a fresh application before the Principal Commissioner of Income Tax (Exemption) within a period of ten days and if such an application is filed, the Principal Commissioner of Income Tax (Exemption) should consider the application on its merit for condoning the delay in filing the return by the petitioner in respect of the assessment year 2022-23 and pass order expeditiously in accordance with law.

WP(C) NO. 39353 OF 2023 4

4.

The 4th respondent, Commissioner of Income Tax (Appeals) should consider the application for a stay filed by the petitioner against the intimation under Section 143 (1), expeditiously.

5.

With the aforesaid directions, the present writ petition is disposed of. DINESH KUMAR SINGH JUDGE rpr

WP(C) NO. 39353 OF 2023 5

Appendix — schedule of exhibits
APPENDIX OF WP(C) 39353/2023 PETITIONER’S EXHIBITS Exhibit P1 COPY OF CIRCULAR NO. 09/2015 ISSUED BY THE INCOME TAX DEPARTMENT BOARD DTD. 09-06-2015. Exhibit P2 COPY OF APPLICATION FILED BY THEPETITIONER BEFORE THE 2ND RESPONDENT DTD. 14-12-2022. Exhibit P3 COPY OF ORDER ISSUED BY THE 3RD RESPONDENT DTD. 04-04-2023. Exhibit P4 COPY OF APPEAL FILED BY THE PETITIONER BEFORE THE 4TH RESPONDENT DTD. 27-04-2023. Exhibit P5 COPY OF STAYAPPLICATION FILED BY THE PETITIONER BEFORE THE 4TH RESPONDENT DTD. 26- 04-2023.

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