Namra Mahila Evam Bal Kalyan Samiti vs. Commissioner Of Income Tax & Ors.

WP/28605/2003HC Madhya Pradesh31 August 2023Bench: HON'BLE SHRI JUSTICE SHEEL NAGU2 pages

For Petitioner: Sumit,Pankaj Nema,Mohan Sausarkar,M.Agrawal,

AI SummaryAllowed

What did the High Court hold?

The High Court held that consequent to the Revenue's decision not to file an appeal against the order dated 11.02.2020 passed in MAIT No.71/2004, which had upheld the registration of the petitioner as a charitable trust, the impugned order dated 12.08.2003 passed by the Commissioner of Income Tax-II, Jabalpur, stands quashed. The Court directed that the letter dated 21.08.2023 from the CIT (Exemption), Bhopal, be taken on record. The petition was accordingly allowed without any cost. The principle applied is that when the Revenue accepts a higher judicial pronouncement that is favorable to an assessee, any prior or subsequent order that contradicts this accepted pronouncement is rendered void.

What were the facts?

The petitioner, Namra Mahila Evam Bal Kalyan Samiti, Rewa, filed a writ petition challenging an order dated 12.08.2003 passed by the Commissioner of Income Tax-II, Jabalpur. The Revenue, represented by the Commissioner of Income Tax (Exemption), Bhopal, has now informed the Court through a letter dated 21.08.2023 that the Department has decided not to file an appeal against a previous order dated 11.02.2020 passed in MAIT No.71/2004. That prior order had set aside the order of the Income Tax Appellate Tribunal (ITAT), thereby upholding the registration of the petitioner as a charitable trust. The Revenue's current stance means it accepts the decision of the Co-ordinate Bench of the High Court in MAIT No.71/2004.

What were the issues?

1. Whether the Revenue's decision not to appeal the order dated 11.02.2020 in MAIT No.71/2004, which upheld the petitioner's registration as a charitable trust, has the effect of quashing the impugned order dated 12.08.2003 passed by the Commissioner of Income Tax-II, Jabalpur. Assessee's Contention: The assessee, through its counsel, implicitly argues that the Revenue's acceptance of the prior High Court order should lead to the quashing of the impugned order. The petitioner relies on the principle that when a higher authority accepts a decision, subsequent adverse orders based on the same grounds should be nullified. Revenue's Contention: The Revenue, through the letter dated 21.08.2023, has formally communicated its decision not to pursue an appeal against the order dated 11.02.2020. This signifies their acceptance of the High Court's previous ruling that upheld the petitioner's charitable trust registration. The Revenue's stance is that the impugned order, which was likely adverse to the petitioner's registration, should be set aside in light of this acceptance.

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT OF MADHYA PRADESH AT JABALPUR BEFORE HON'BLE SHRI JUSTICE SHEEL NAGU & HON'BLE SHRI JUSTICE AMAR NATH (KESHARWANI) ON THE 31st OF AUGUST, 2023 WRIT PETITION No. 28605 of 2003 BETWEEN:- NAMRA MAHILA EVAM BAL KALYAN SAMITI, REWA, THROUGH ITS PRESIDENT GIRISH MISHRA S/O LATE JANARDHAN PRASAD MISHRA, AGED ABOUT 42 YEARS, RESIDING AT NIPANIA, REWA (M.P.) .....PETITIONER (BY SHRI SUMIT NEMA - SENIOR ADVOCATE WITH SHRI AYUSH GUPTA - ADVOCATE ) AND 1. COMMISSIONER OF INCOME TAX - II, JABALPUR (M.P.) 2. ASSISTANT COMMISSIONER OF INCOME TAX, SATNA (M.P.) 3. UNION OF INDIA THROUGH THE SECRETARY, MINISTRY OF FINANCE, NORTH BLOCK, NEW DELHI .....RESPONDENTS (BY SHRI SIDDHARTH SHARMA - ADVOCATE) This petition coming on for hearing this day, Justice Sheel Nagu passed the following: ORDER Learned counsel for the Revenue has produced letter dated 21.08.2023 of the Commissioner of Income-tax (Exemption), Bhopal revealing that the order dated 11.02.2020 passed in MAIT No.71/2004 (Commissioner of Income Tax, Jabalpur Vs. Namra Mahila Avam Bal Kalyan Samiti, Rewa (M.P.) 1 (SHEEL NAGU) JUDGE (AMAR NATH (KESHARWANI)) JUDGE whereby the order of the Tribunal setting aside the order of the CIT thereby upholding the registration of the appellant as a charitable trust, has been decided to be upheld. The Revenue informs through the said letter that the Department has decided not to file any appeal against the order dated 11.02.2020 passed in MAIT No.71/2004. In effect, the Revenue has accepted the decision of the Co-ordinate Bench of this Court dated 11.02.2020 in MAIT No.71/2004. Consequent upon the aforesaid fair stand taken by the Revenue, the impugned order dated 12.08.2003 (Annexure P/16) passed by Commissioner of Income Tax-II, Jabalpur stands quashed. The said letter dated 21.08.2023 of C.I.T. (Exemption), Bhopal is directed to be taken on record. Registry to do the needful. The petition accordingly stands allowed without any cost. DV

2 DINESH VERMA 2023.09.05 10:58:32 +05'30'

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