SEED ASSOCIATION OF M.P. THRU. VAIBHAV JAIN vs. INCOME TAX DEPARTMENT

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WP/570/2016HC Madhya PradeshMPHC02001967201625 July 20161 pages
AI SummaryRemanded

What did the High Court hold?

The Tribunal noted the significant delay in processing the petitioner's application for registration under Section 12-A of the Income Tax Act, 1961. Considering the prolonged pendency, the Tribunal directed the petitioner to file a fresh representation with supporting documents before respondent No. 1, the competent authority, within one week of receiving a certified copy of the order. Subsequently, the competent authority was mandated to consider the representation and pass an appropriate order in accordance with the law within six weeks thereafter. The writ petition was disposed of with these directions. No specific finding was made on the charitable nature of the objects, as the matter was remitted for fresh consideration.

What were the facts?

The petitioner, Seed Association of M.P., filed a writ petition challenging the inordinate delay in the disposal of its application for registration under Section 12-A of the Income Tax Act, 1961. The application for exemption had been pending since September 2, 2005. An Assessing Officer's report dated December 29, 2006, indicated that the society's objects did not appear to be of a charitable nature. The respondents' counsel stated that the competent authority was the Commissioner of Income Tax (Exemption), Bhopal, and that representations were pending before respondent No. 1.

What were the issues?

1. Whether the delay in processing the application for registration under Section 12-A of the Income Tax Act, 1961, is unreasonable and warrants intervention by the High Court. (Question of law and fact) The petitioner argued that its application for registration under Section 12-A has been pending since September 2, 2005, which is an excessive delay. The revenue, through its counsel, acknowledged that the competent authority is the Commissioner of Income Tax (Exemption), Bhopal, and that representations were pending before respondent No. 1. The revenue did not contest the fact of the pending application or the delay.

Which sections of the Income-tax Act were involved?

Section 12-A

AI-generated summary — verify with the full judgment below

WP-570-2016 (SEED ASSOCIATION OF M.P. THRU. VAIBHAV JAIN Vs INCOME TAX DEPARTMENT) 25-07-2016 Shri Kamal Airen, learned counsel for the petitioner. Ms. Veena Mandlik, learned counsel for the respondents. Application for registration under Section 12-A of Income Tax Act, 1961 for grant of exemption is pending since 02/09/2005. As per Assessing Officer's report dated 29/12/2006, the objects of the society do not inform any activity of charitable nature. Learned counsel for the respondents submitted that competent authority is Commissioner of Income Tax (Exemption), Aaykar Bhawan, Hoshangabad Road, Bhopal and all the representations are pending before respondent No.1. Considering the aforesaid, the petitioner is directed to file a fresh representation along with documents before respondent No.1 within a week from the date of receipt of certified copy of this order and thereafter learned competent Authority shall consider the representation and pass appropriate order in accordance with law within a period of six weeks thereafter. With the aforesaid, the writ petition is disposed of. (P.K. JAISWAL) JUDGE (D.K. PALIWAL) JUDGE

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