M/S. SOLIDARITY MOVEMENT OF INDIA , vs. THE INCOME TAX OFFICER

WP(C)/11717/2023HC KeralaKLHC01026027202303 April 2023Author: HONOURABLE MR. JUSTICE T.R.RAVI4 pages
AI SummaryRemanded

What were the facts?

The petitioner, M/s. Solidarity Movement of India, a charitable society, filed a writ petition before the High Court of Kerala challenging the denial of benefits under Section 11 of the Income Tax Act, 1961. The denial was attributed to the petitioner's failure to submit audit reports within the stipulated time. The respondents are the Income Tax Officer, Centralised Processing Centre, Central Board of Direct Taxes, and the Commissioner of Income Tax (Exemption). The petitioner had submitted an application for condonation of delay in filing Form No. 10B.

What did the High Court hold?

The High Court of Kerala admitted the writ petition. The Court noted the submission by the Standing Counsel for the respondents regarding Circular No. 16/22 dated 19.07.2022, which empowers Commissioners of Income Tax to admit applications for condonation of delay in filing Form No. 10B. Since the petitioner had already preferred an application for condonation of delay (Ext.P4), the Court directed the 4th respondent (Commissioner of Income Tax (Exemption)) to consider this application and pass appropriate orders within one month. Furthermore, consequential changes in the assessment were to be made within six months thereafter. The Court also ordered that any recovery steps initiated against the petitioner would remain suspended until a decision on the condonation application is taken.

What were the issues?

1. Whether the petitioner is entitled to the benefit of Section 11 of the Income Tax Act, 1961, despite the delay in filing audit reports? Assessee's contention: The petitioner, a charitable society, seeks the benefit of Section 11. The reason for the delay in filing audit reports is not explicitly stated, but the filing of a condonation petition implies a request for leniency. The petitioner relies on the existence of a mechanism to condone such delays. Revenue's contention: The Standing Counsel for the respondents brought to the court's notice Circular No. 16/22 dated 19.07.2022, which authorizes Commissioners of Income Tax to admit applications for condonation of delay in filing Form No. 10B for relevant assessment years. This indicates the revenue acknowledges the possibility of condoning delays under specific circumstances.

Which sections of the Income-tax Act were involved?

Section 11

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE T.R.RAVI MONDAY, THE 3RD DAY OF APRIL 2023 / 13TH CHAITHRA, 1945 WP(C) NO. 11717 OF 2023 PETITIONER: M/S. SOLIDARITY MOVEMENT OF INDIA, 1, CENTRAL COMMITTEE, KANJIKUZHY P.O, IDUKKI - 685606, REPRESENTED BY ITS PRESIDENT (CHIEF FUNCTIONARY), T.K. THULASEEDHARAN PILLAI. BY ADVS. HARISANKAR V. MENON MEERA V.MENON R.SREEJITH K.KRISHNA PARVATHY MENON RESPONDENTS: 1 THE INCOME TAX OFFICER INCOME TAX DEPARTMENT, RANGE 174, EXEMPTION CIRCLE, KOCHI – 682018. 2 CENTRALISED PROCESSING CENTRE INCOME TAX DEPARTMENT, 1ST FLOOR, BERATENAAGRAHARA BEGUR, HOSUR ROAD, UTTARAHALLI HOBLI, BENGALURU – 560100. 3 CENTRAL BOARD OF DIRECT TAXES DEPARTMENT OF REVENUE, MINISTRY OF FINANCE, GOVERNMENT OF INDIA, NEW DELHI – 110001. 4 THE COMMISSIONER OF INCOME TAX (EXEMPTION) C. R. BUILDING, I S PRESS ROAD, ERNAKULAM, KOCHI – 682018. SRI.CHRISTOPHER ABRAHAM-SC THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 03.04.2023, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

WP(C) NO. 11717 OF 2023 2 T.R. RAVI, J. -------------------------------------------- W.P.(C) No.11717 of 2023 ------------------------------------------

The order continues below.

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