SRI MAMANIKKUNNU MAHADEVI TEMPLE, vs. INCOME TAX OFFICER,

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WP(C)/14904/2022HC KeralaKLHC01029978202206 December 2023Bench: HONOURABLE MR. JUSTICE D. K. SINGH7 pages
AI SummaryAllowed

What did the High Court hold?

The High Court of Kerala allowed the writ petitions. The Court quashed the impugned Ext.P1 orders dated 24.03.2023 and 31.03.2022 passed under Section 148A(d) of the Income Tax Act, 1961, and the Ext.P2 notices under Section 148 of the Act, which were challenged in the respective writ petitions. This decision was based on the concession made by the learned Standing Counsel for the Income Tax Department that a mistake had occurred in the issuance of these orders and notices. The ratio decidendi is that where the revenue concedes to an error in its proceedings, the court will intervene to quash such erroneous actions. No specific issue was left undecided.

What were the facts?

The petitioner, Sri Mamanikkunnu Mahadevi Temple, an artificial juridical person, holds two Permanent Account Numbers (PANs): AAAJS4785N and AAWTS2249B. The temple was granted exemption under Section 12AA of the Income Tax Act, 1961, for PAN AAAJS4785N. However, for assessment years 2016-17 and 2015-16, the Income Tax Officer, Exemption Ward, Kannur, issued orders under Section 148A(d) and notices under Section 148 of the Act in respect of PAN AAAJS4785N. These orders and notices are challenged by the petitioner in two separate writ petitions before the High Court of Kerala.

What were the issues?

1. Whether the orders passed under Section 148A(d) and notices issued under Section 148 of the Income Tax Act, 1961, are liable to be quashed when the assessee, an artificial juridical person, has been issued two PANs, and exemption was granted for one PAN while reassessment proceedings were initiated for the other PAN concerning the same income. Assessee's Contention: The petitioner argued that the issuance of two PANs to the same artificial juridical person, with exemption granted for one and reassessment proceedings initiated for the other for the same income, constitutes an error. The petitioner relied on the fact that exemption was granted under Section 12AA for PAN AAAJS4785N. Revenue's Contention: The Standing Counsel for the Income Tax Department fairly conceded that a mistake had crept in while issuing the orders under Section 148A(d) and notices under Section 148 of the Act.

Which sections of the Income-tax Act were involved?

Section 12AA,Section 148A,Section 148

AI-generated summary — verify with the full judgment below

Heard together (2 matters)

WP(C) NO. 12789 OF 2023
WP(C).14904/2022

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

IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE DINESH KUMAR SINGH WEDNESDAY, THE 6TH DAY OF DECEMBER 2023 / 15TH AGRAHAYANA, 1945 WP(C) NO. 12789 OF 2023 PETITIONER/S: SRI MAMANIKKUNNU MAHADEVI TEMPLE, IRIKKUR P.O , KANNUR - 670593, REP. BY ITS EXECUTIVE OFFICER, P MURALEEDHARAN. BY ADVS. P.RAGHUNATHAN PREMJIT NAGENDRAN M.SHYLAJA RISHAL.K RESPONDENT/S: 1 INCOME TAX OFFICER, EXEMPTION WARD, AAYAKAR BHAVAN,O/O ADDL./JOINT CIT, CHOVVA P.O , KANNUR-670 006. 2 COMMISSIONER OF INCOME TAX (EXEMPTIONS), 2ND FLOOR, SAN JUAN TOWERS, OLD RAILWAY STATION , KOCHI- 682018 3 PRINCIPAL CHIEF COMMISSIONER OF INCOME TAX (EXEMPTION), CR BUILDING ; IP ESTATE, DELHI-110002 BY ADV CHRISTOPHER ABRAHAM, INCOME TAX DEPARTMENT OTHER PRESENT: SRI.CHRISTOPHER ABRAHAM-SC THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 06.12.2023, ALONG WITH WP(C).14904/2022, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

WP(Cs 12789/23 & 14904/22 2 IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE DINESH KUMAR SINGH WEDNESDAY, THE 6TH DAY OF DECEMBER 2023 / 15TH AGRAHAYANA, 1945 WP(C) NO. 14904 OF 2022 PETITIONER/S: SRI MAMANIKKUNNU MAHADEVI TEMPLE, IRIKKUR P.O., KANNUR 670 593, REP. BY ITS EXECUTIVE OFFICER, P. MURALEEDHARAN BY ADVS. P.RAGHUNATHAN PREMJIT NAGENDRAN RESPONDENT/S: 1 INCOME TAX OFFICER, EXEMPTION WARD , KANNUR - 670006. 2 COMMISSIONER OF INCOME TAX (EXEMPTIONS), KOCHI 682 018. 3 PRINCIPAL CHIEF COMMISSIONER OF INCOME TAX, (EXEMPTION), DELHI 110001. BY ADV CHRISTOPHER ABRAHAM, SC, INCOME TAX DEPARTMENT THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 06.12.2023, ALONG WITH WP(C).12789/2023, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

WP(Cs 12789/23 & 14904/22 3 J U D G M E N T [WP(C) Nos.12789/2023 and 14904/2022] The

petitioner-trust

has

been

issued certificate under Section 12AA of the Income Tax Act, 1961 (“Act”, for short), and thus it is exempted from payment of income tax on its income. 2. The petitioner has been issued order in Ext.P1 under Section 148A(d) and thereafter notice in Ext.P2 under Section 148 of the Act, by the 1st respondent. Such orders and notices issued for the assessment years 2016-17 and 2015-16 are under challenge in these writ petitions, respectively. 3. The petitioner had been granted exemption under Section 12AA as an “artificial juridical person” in respect of PAN No.AAAJS4785N. The petitioner has another PAN No.AAWTS2249B. The aforesaid notices as well as orders under Section 148A(d) have been passed in respect of PAN No.AAAJS4785N. Learned counsel for the petitioner submits that the same “artificial juridical person” has been issued two Permanent Account Numbers and in respect of one PAN number, the petitioner has

WP(Cs 12789/23 & 14904/22 4 been granted exemption, but in respect of the other PAN number, for the same income the petitioner has been issued orders under Section 148A(d) and notices under Section 148 of the Act. 4. Sri.Christopher Abraham, learned Standing Counsel for the Income Tax Department, fairly concedes that some mistake has been crept in while issuing orders under Section 148A(d) and notices under Section 148 of the Act, which are challenged in these writ petitions. 5. Considering the said stand on behalf of the Revenue, the present writ petitions are allowed and the impugned Ext.P1 orders dated 24.3.2023 & 31.3.2022 passed under Section 148A(d) of the Act and Ext.P2 notices under Section 148 of the Act challenged in the respective writ petitions are hereby quashed. Pending interlocutory applications, if any, in these writ petitions stand dismissed. Sd/- DINESH KUMAR SINGH

JUDGE jg

WP(Cs 12789/23 & 14904/22 5 APPENDIX OF WP(C) 14904/2022 PETITIONER EXHIBITS Exhibit P1 PHOTOCOPY OF ORDER U/S 1484[D] OF IT ACT DT. 31.03.2022 FOR 2015.16. Exhibit P2 PHOTOCOPY OF NOTICE U/S 148 OF THE ACT DT. 31.03.2022. Exhibit P3 PHOTOCOPY OF ORDER U/S 12AA PASSED BY SECOND RESPONDENT. Exhibit P4 NOTICE DT. 21.03.2022 U/S 148A OF THE ACT FOR A.Y. 2015.16. Exhibit P5 REPLY TO EXT. P-4 NOTICE WITH ANNEXURES . Exhibit P6 PHOTOCOPY OF PAN CARD NO. AAAJS4785N RE: PETITIONER. Exhibit P7 PHOTOCOPY OF PAN CARD NO. AAWTS2249B RE: PETITIONER. Exhibit P-8 PHOTOCOPY OF LETTER DT. 14.07.2021 SURRENDERING OLD PAN CARD Exhibit P-9 PHOTOCOPY OF LETTER DT. 10.06.2022 RESPONDENT EXHIBITS EXHIBIT R1(A) COPY OF THE JUDGMENT DATED 02.09.2022 OF THE SUPREME COURT IN THE CASE OF ANSHUL JAIN V. THE PRINCIPAL COMMISSIONER OF INCOME TAX AND ANOTHER [2022] 449 ITR 256 (SC) EXHIBIT R1(B) COPY OF THE JUDGMENT OF THE PUNJAB AND HARIYANA DATED 02.06.2022 IN THE CASE OF ANSHUL JAIN V. THE PRINCIPAL COMMISSIONER OF INCOME TAX AND ANOTHER [2022] 449 ITR 251 (P AND H)

WP(Cs 12789/23 & 14904/22 6 EXHIBIT R1(C) COPY OF THE JUDGMENT DATED 07.12.2022 OF KERALA HIGH COURT IN W.P. C. NO. 37527/2022 IN THE CASE OF M/S VISWABHARATHI MEDICALS V. INCOME TAX OFFICER

WP(Cs 12789/23 & 14904/22 7 APPENDIX OF WP(C) 12789/2023 PETITIONER EXHIBITS Exhibit -P-1 PHOTOCOPY OF ORDER U/S 148A(D) OF IT ACT DT. 24.03.2023 FOR 2016.17 Exhibit-P-2 PHOTOCOPY OF NOTICE U/S 148 OF THE ACT DT. 24.03.2023 Exhibit-P-3 PHOTOCOPY OF ORDER U/S OF 12AA PASSED BY SECOND RESPONDENT Exhibit-P-4 PHOTOCOPY OF NOTICE DT. 15.02.2023 U/S 148A OF THE ACT FOR A.Y 2016.17 Exhibit-P-5 REPLY TO EXT. P-4 NOTICE Exhibit P6 PHOTOCOPY OF PAN CARD NO. AAAJS4785N RE: PETITONER Exhibit P7 PHOTOCOPY OF PAN CARD NO.AAWTS2249B

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