M/S. PUNNYAM TRUST vs. THE INCOME TAX OFFICER

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WP(C)/6897/2023HC KeralaKLHC01016237202302 March 2023Author: HONOURABLE MR. JUSTICE T.R.RAVI12 pages
AI SummaryRemanded

What did the High Court hold?

The High Court noted that the Commissioners of Income Tax have been authorized by Circular No. 16/2022 dated 19.07.2022 to admit applications for condonation of delay in filing Form 10B for the relevant assessment years. Therefore, the Court directed the petitioners to approach the concerned Commissioners of Income Tax with an appropriate application for condonation of delay in submitting the audit reports in Form 10B. If such applications are filed within one month from the date of the order, they shall be considered and orders passed within one month. Consequential changes in the assessment are to be made within six months thereafter. The orders previously issued and any recovery steps initiated are to remain suspended until a decision is taken on the condonation applications. The writ petitions were disposed of in terms of this direction.

What were the facts?

The petitioners are Charitable Trusts (M/s. Punnyam Trust, M/s. Athuraseva Sangham, M/s. Ettumanoor Education Society, M/s. Vidyadhiraja Educational and Charitable Trust, and M/s. Kottayam Taluk Mannam Social Service Society) who are aggrieved by the denial of the benefit of Section 11 of the Income Tax Act, 1961. This denial was due to their failure to submit audit reports in Form 10B within the prescribed time. The Income Tax Officer and the Centralised Processing Center are the respondents. The cases were heard by the High Court of Kerala at Ernakulam.

What were the issues?

1. Whether the petitioners are entitled to the benefit of Section 11 of the Income Tax Act, 1961, despite failing to submit their audit reports in Form 10B within the stipulated time? Assessee's Contention: The petitioners, being Charitable Trusts, are seeking the benefit of Section 11. The core issue revolves around the procedural lapse of late filing of Form 10B. Revenue's Contention: The revenue appears to have denied the benefit of Section 11 due to the non-compliance with the filing requirement of Form 10B. The judgment does not explicitly detail the revenue's arguments beyond this procedural denial.

Which sections of the Income-tax Act were involved?

Section 11

AI-generated summary — verify with the full judgment below

Heard together (5 matters)

WP(C) NO. 6897 OF 2023
WP(C).6913/2023
WP(C) NO. 6947 OF 2023
WP(C) NO. 6983 OF 2023
WP(C) NO. 6989 OF 2023

Read from the judgment's own cause title. This page is filed under one of them.

Cause title — parties, addresses and appearances
IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE T.R.RAVI THURSDAY, THE 2ND DAY OF MARCH 2023 / 11TH PHALGUNA, 1944 WP(C) NO. 6897 OF 2023 PETITIONER: 1 M/S. PUNNYAM TRUST PUNNYAM TRUST BUILDING, T.P.PURAM, VAZHOOR, KOTTAYAM, PIN - 686505 REPRESENTED BY ITS TREASURER, RAJESH G. BY ADVS. HARISANKAR V. MENON MEERA V.MENON R.SREEJITH K.KRISHNA RESPONDENTS: 1 THE INCOME TAX OFFICER EXEMPTION WARD, INCOME TAX DEPARTMENT, PUBLIC LIBRABRY BUILDING LAL BAHADUR SASTRI ROAD, KOTTAYAM, PIN - 686001 2 CENTRALISED PROCESSING CENTER 1ST FLOOR, BERATENAAGRAHARA BEGUR, HOSUR ROAD, UTTARAHALLI HOBLI, BENGALURU, PIN - 560100 SRI. CHRISTOPHER ABRAHAM, STANDING COUNSEL THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 02.03.2023, ALONG WITH WP(C).6913/2023, 6947/2023 AND CONNECTED CASES, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WPC No.6897 of 2023 & conn. cases 2 IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE T.R.RAVI THURSDAY, THE 2ND DAY OF MARCH 2023 / 11TH PHALGUNA, 1944 WP(C) NO. 6913 OF 2023 PETITIONER: 1 M/S. ATHURASEVA SANGHAM SACHIVOTHAMAPURAM, KOTTAYAM, PIN – 686532 REPRESENTED BY ITS SECRETARY, E. K. VIJAYAKUMAR BY ADVS. HARISANKAR V. MENON MEERA V.MENON R.SREEJITH K.KRISHNA RESPONDENTS: 1 THE INCOME TAX OFFICER EXEMPTION WARD, INCOME TAX DEPARTMENT, PUBLIC LIBRARY BUILDING, LAL BAHADUR SASTRI ROAD, KOTTAYAM, PIN - 686001 2 CENTRALISED PROCESSING CENTER 1ST FLOOR, BERATENAAGRAHARA BEGUR, HOSUR ROAD, UTTARAHALLI, HOBLI, BENGALURU, PIN – 560100 SRI. CHRISTOPHER ABRAHAM, STANDING COUNSEL THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 02.03.2023, ALONG WITH WP(C).6897/2023 AND CONNECTED CASES, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WPC No.6897 of 2023 & conn. cases 3 IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE T.R.RAVI THURSDAY, THE 2ND DAY OF MARCH 2023 / 11TH PHALGUNA, 1944 WP(C) NO. 6947 OF 2023 PETITIONER: 1 M/S. ETTUMANOOR EDUCATION SOCIETY ETTUMANOORAPPAN COLLEGE, CHOORAKKULANGARS, ETTUMANOOR KOTTAYAM, PIN – 686631 REPRESENTED BY ITS EXECUTIVE COMMITTEE MEMBER, HEMANT KUMAR BY ADVS. HARISANKAR V. MENON MEERA V.MENON R.SREEJITH K.KRISHNA RESPONDENTS: 1 THE INCOME TAX OFFICER EXEMPTION WARD, INCOME TAX DEPARTMENT, PUBLIC LIBRARY BUILDING, LAL BAHADUR SASTRI ROAD, KOTTAYAM, PIN - 686001 2 CENTRALISED PROCESSING CENTER 1ST FLOOR, BERATENAAGRAHARA BEGUR, HOSUR ROAD, UTTARAHALLI HOBLI, BENGALURU, PIN – 560100 SRI. CHRISTOPHER ABRAHAM, STANDING COUNSEL THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 02.03.2023, ALONG WITH WP(C).6897/2023 AND CONNECTED CASES, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WPC No.6897 of 2023 & conn. cases 4 IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE T.R.RAVI THURSDAY, THE 2ND DAY OF MARCH 2023 / 11TH PHALGUNA, 1944 WP(C) NO. 6983 OF 2023 PETITIONER: 1 M/S. VIDYADHIRAJA EDUCATIONAL AND CHARITABLE TRUST PONNARAMTHOTTAM, MAVELIKKARA, ALAPPUZHA, KERALA, PIN – 690101 REPRESENTED BY ITS MANAGING TRUSTEE, M.N.SASIDHARAN PILLAI. BY ADVS. HARISANKAR V. MENON MEERA V.MENON R.SREEJITH K.KRISHNA RESPONDENTS: 1 THE INCOME TAX OFFICER EXEMPTION WARD, INCOME TAX DEPARTMENT, AAYAKAR BHAVAN, ALAPPUZHA, PIN - 688001 2 CENTRALISED PROCESSING CENTER INCOME TAX DEPARTMENT, 1ST FLOOR, BERATENAAGRAHARA BEGUR, HOSUR ROAD, UTTARAHALLI HOBLI, BENGALURU, PIN – 560100 SRI. CHRISTOPHER ABRAHAM, STANDING COUNSEL THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 02.03.2023, ALONG WITH WP(C).6897/2023 AND CONNECTED CASES, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WPC No.6897 of 2023 & conn. cases 5 IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE T.R.RAVI THURSDAY, THE 2ND DAY OF MARCH 2023 / 11TH PHALGUNA, 1944 WP(C) NO. 6989 OF 2023 PETITIONER: 1 M/S. KOTTAYAM TALUK MANNAM SOCIAL SERVICE SOCIETY KMC-17-698, NSS UNION OFFICE BLDNG, THIRUNAKKARA, KOTTAYAM, PIN – 686001 REPRESENTED BY ITS SECRETARY, A. M. RADHAKRISHNAN NAIR. BY ADVS. HARISANKAR V. MENON MEERA V.MENON R.SREEJITH K.KRISHNA RESPONDENTS: 1 THE INCOME TAX OFFICER EXEMPTION WARD, INCOME TAX DEPARTMENT, AAYAKAR BHAVAN, ALAPPUZHA, PIN - 688001 2 CENTRALISED PROCESSING CENTER 1ST FLOOR, BERATENAAGRAHARA BEGUR, HOSUR ROAD, UTTARAHALLI HOBLI, BENGALURU, PIN – 560100 SRI. CHRISTOPHER ABRAHAM, STANDING COUNSEL THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 02.03.2023, ALONG WITH WP(C).6897/2023 AND CONNECTED CASES, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WPC No.6897 of 2023 & conn. cases 6 T.R. RAVI, J. ------------------------------------------------ WP(C) Nos.6897/2023, 6913/2023, 6947/2023, 6983/2023 & 6989/2023 ----------------------------------------------- Dated this the 02nd day of March, 2023

JUDGMENT The grievance in all these cases is that the benefit of Section 11 of the Income Tax Act, 1961 has not been extended to the petitioners who are Charitable Trusts, for the reason that they failed to submit the audit reports in Form 10B in time.

2.

When the case is taken up today, the counsel for the respondents placed before me circular No.16/2022 dated 19.07.2022 whereby the Commissioners of Income Tax have been authorised to admit applications for condonation of delay in filing Form 10B, for the relevant assessment years.

3.

In view of the above circular, it is for the petitioners to approach the Commissioners of Income Tax concerned with an appropriate application for condonation of delay in the submission of audit reports in Form 10B and if such applications are filed within one month from today, the same shall be considered and orders passed within one month and consequential changes made in the assessment within six months thereafter. The orders now issued and the steps for recovery initiated shall stand suspended till a decision is taken as aforesaid. The writ petition is disposed of as above. T.R.RAVI JUDGE SKP/02-03

Appendix — schedule of exhibits
APPENDIX OF WP(C) 6897/2023 PETITIONER’S EXHIBITS: EXHIBIT P1 COPY OF RETURN OF INCOME ALONG WITH THE STATEMENT OF INCOME FILED BY THE PETITIONER DTD. 14-03-2022 EXHIBIT P2 COPY OF AUDIT REPORT IN FORM 10B FILED BY THE PETITIONER DTD. 14-03-2022 EXHIBIT P3 COPY OF INTIMATION ISSUED BY THE 2ND RESPONDENT DTD. 25-11-2022 EXHIBIT P4 COPY OF ORDER OF ITAT, CHANDIGARH BENCH DTD. 29-04-2021 EXHIBIT P5 COPY OF RECTIFICATION REQUEST ACKNOWLEDGEMENT DTD. NIL EXHIBIT P6 COPY OF RECTIFICATION ORDER ISSUED BY THE 2ND RESPONDENT DTD. 24-01-2023 RESPONDENTS' EXHIBITS:NIL WPC No.6897 of 2023 & conn. cases 9 APPENDIX OF WP(C) 6913/2023 PETITIONER’S EXHIBITS: EXHIBIT P1 COPY OF RETURN OF INCOME ALONG WITH THE STATEMENT OF INCOME FILED BY THE PETITIONER DTD. 31-03-2022 EXHIBIT P2 COPY OF AUDIT REPORT IN FORM 10B FILED BY THE PETITIONER DTD. 15-03-2022 EXHIBIT P3 COPY OF THE REVISED AUDIT REPORT IN FORM 10B FILED BY THE PETITIONER DTD. 31-03-2022 EXHIBIT P4 COPY OF INTIMATION ISSUED BY THE 2ND RESPONDENT DTD. 20-09-2022 EXHIBIT P5 COPY OF ORDER OF THE ITAT, CHANDIGARH BENCH DTD. 29-04-2021 EXHIBIT P6 COPY OF ACKNOWLEDGEMENT OF RECTIFICATION REQUEST DTD. NIL EXHIBIT P7 COPY OF RECTIFICATION ORDER ISSUED BY THE 2ND RESPONDENT DTD. 15-12-2022 EXHIBIT P8 COPY OF NOTICE ISSUED BY THE 1ST RESPONDENT DTD. 16-02-2023 RESPONDENTS' EXHIBITS:NIL WPC No.6897 of 2023 & conn. cases 10 APPENDIX OF WP(C) 6947/2023 PETITIONER’S EXHIBITS: EXHIBIT P1 COPY OF RETURN OF INCOME ALONG WITH THE STATEMENT OF INCOME FILED BY THE PETITIONER DTD. 31-03-2022 EXHIBIT P2 COPY OF AUDIT REPORT IN FORM 10B FILED BY THE PETITIONER DTD. 15-03-2022 EXHIBIT P3 COPY OF REVISED AUDIT REPORT IN FORM 10B FILED BY THE PETITIONER DTD. 31-03-2022 EXHIBIT P4 COPY OF INTIMATION ISSUED BY THE 2ND RESPONDENT DTD. 23-08-2022 EXHIBIT P5 COPY IOF ORDER OF ITAT, CHANDIGARH BENCH DTD.29-04-2021 EXHIBIT P6 COPY OF RECTIFICATION REQUEST ACKNOWLEDGEMENT DTD. NIL EXHIBIT P7 COPY OF RECTIFICATION ORDER ISSUED BY THE 2ND RESPONDENT DTD. 16-12-2022 RESPONDENTS' EXHIBITS:NIL WPC No.6897 of 2023 & conn. cases 11 APPENDIX OF WP(C) 6983/2023 PETITIONER’S EXHIBITS: EXHIBIT P1 COPY OF RETURN OF INCOME ALONG WITH THE STATEMENT OF INCOME FILED BY THE PETITIONER DTD. 14-03-2022 EXHIBIT P2 COPY OF THE AUDIT REPORT IN FORM 10B FILED BY THE PETITIONER DTD. 14-03-2022 EXHIBIT P3 COPY OF INTIMATION ISSUED BY THE 2ND RESPONDENT DTD. 23-08-2022 EXHIBIT P4 COPY OF ORDER OF ITAT, CHANDIGARH BENCH DTD. 29-04-2021 EXHIBIT P5 COPY OF RECTIFICATION REQUEST ACKNOWLEDGEMENT DTD. NIL EXHIBIT P6 COPY OF RECTIFICATION ORDER ISSUED BY THE 2ND RESPONDENT DTD. 06-12-2022 RESPONDENTS' EXHIBITS:NIL WPC No.6897 of 2023 & conn. cases 12 APPENDIX OF WP(C) 6989/2023 PETITIONER’S EXHIBITS: EXHIBIT P1 COPY OF RETURN OF INCOME FILED BY THE PETITIONER DTD. 12-03-2022 EXHIBIT P2 COPY OF AUDIT REPORT IN FORM 10B FILED BY THE PETITIONER DTD. 10-03-2022 EXHIBIT P3 COPY OF INTIMATION ISSUED BY THE 2ND RESPONDENT DTD. 25-11-2022 EXHIBIT P4 COPY OF ORDER OF THE ITAT, CHANDIGARH BENCH DTD. 29-04-2021 EXHIBIT P5 COPY OF RECTIFICATION APPLICATION ACKNOWLEDGEMENT DTD. NIL EXHIBIT P6 COPY OF ORDER ISSUED BY THE 2ND RESPONDENT DTD. 24-01-2023 RESPONDENTS' EXHIBITS:NIL TRUE COPY P.A. TO JUDGE

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