Atma Bodhodaya Sangham Sree Subhananda Trust 1 V. The Income Tax Officer Exemption Ward - Alappuzha and The Principal Commissioner Income Tax Department and Centralized Processing Center and Commissioner of Income Tax (Appeals) and The Asst. Commissioner of Income Tax Exemption Circle

WP(C)/39353/2023

AI Insights

The case involves Atma Bodhodaya Sangham Sree Subhananda Trust, a charitable trust, which faced a demand of Rs.3,38,68,150 due to the denial of deduction claimed in its income tax return for the assessment year 2022-23. The return was filed beyond the prescribed time under Section 139 of the Income Tax Act, 1961. The trust had previously filed an application under Section 119(2)(b) seeking condonation of the delay, which was presented to the Principal Commissioner of Income Tax, the second respondent. The court's decision allows the trust to reapply to the correct authority for condonation of delay and directs an expedited review of the stay application regarding the financial demand.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 681411 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 29-11-2023
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Applicant
• Court: HIGH COURT
• Department Lawyers: JOSE JOSEPH
• Assessee Lawyers: HARISANKAR MENON; MEERA MENON; R SREEJITH; K MENON
• Keywords: Assessment Order; Charitable Trust; Condone delay; Delay in filing; Income Tax Return
• Section: 143(1); 12AA; 139; 119(2)(b)

Judgement Text

"IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE DINESH KUMAR SINGH WEDNESDAY, THE 29TH DAY OF NOVEMBER 2023 / 8TH AGRAHAYANA, 1945 WP(C) NO. 39353 OF 2023 PETITIONER: ATMA BODHODAYA SANGHAM SREE SUBHANANDA TRUST 1, CHERUKOL, MAVELIKKARA, ALAPPUZHA DISTRICT, REPRESENTED BY ITS SECRETARY, SWAMI GEETHANANDAN, PIN – 690 104. BY ADVS. HARISANKAR V. MENON MEERA V.MENON R.SREEJITH K.KRISHNA PARVATHY MENON RESPONDENTS: 1 THE INCOME TAX OFFICER EXEMPTION WARD - ALAPPUZHA, AAYAKAR BHAVAN, ALAPPUZHA, PIN – 688 011. 2 THE PRINCIPAL COMMISSIONER INCOME TAX DEPARTMENT, C.R. BUILDING,I.S. PRESS ROAD, ERNAKULAM, KOCHI, PIN – 682 018. 3 CENTRALIZED PROCESSING CENTER 1ST FLOOR, BERATENAAGRAHARA BEGUR, HOSUR ROAD, UTTARAHALLIHOBLI, BENGALURU, PIN – 560 100. 4 COMMISSIONER OF INCOME TAX (APPEALS) NATIONAL FACELESS APPEAL CENTRE, DELHI, PIN – 110 001. 5 THE ASST. COMMISSIONER OF INCOME TAX EXEMPTION CIRCLE,AAYAKAR BHAVAN, KAWDIAR P.O.,THIRUVANANTHAPURAM, PIN – 695 003. OTHER PRESENT: JOSE JOSEPH-SR.SC THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 29.11.2023, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C) NO. 39353 OF 2023 2 DINESH KUMAR SINGH, J. -------------------------------------------- WP(C) NO. 39353 OF 2023 -------------------------------------------- Dated this the 29th day of November, 2023 J U D G M E N T 1. As per the averments in the writ petition, the petitioner is a charitable trust registered under the provisions of Section 12AA of the Income Tax Act, 1961. The petitioner has filed return of its income on 19.12.2022 for the assessment year 2022-23. As return has been filed beyond the time prescribed under Section 139 of the Income Tax Act, the deduction claimed by the petitioner has been denied and a demand of Rs.3,38,68,150/- has been made in the assessment order under Section 143 (1). In the meantime, the petitioner has filed an application dated 14.12.2022 under Section 119 (2)(b) in Ext.P2 and presented before the 2nd WP(C) NO. 39353 OF 2023 3 respondent on 22.12.2022. 2. Mr. Jose Joseph, learned Senior Standing Counsel for Income Tax Department however, submits that the Principal Commissioner (Exemption) is the competent authority to condone the delay, but the application has been filed before the Principal Commissioner, 2nd respondent. 3. Considering the aforesaid facts, the present writ petition is disposed of with liberty to the petitioner to file a fresh application before the Principal Commissioner of Income Tax (Exemption) within a period of ten days and if such an application is filed, the Principal Commissioner of Income Tax (Exemption) should consider the application on its merit for condoning the delay in filing the return by the petitioner in respect of the assessment year 2022-23 and pass order expeditiously in accordance with law. WP(C) NO. 39353 OF 2023 4 4. The 4th respondent, Commissioner of Income Tax (Appeals) should consider the application for a stay filed by the petitioner against the intimation under Section 143 (1), expeditiously. 5. With the aforesaid directions, the present writ petition is disposed of. Sd/- DINESH KUMAR SINGH JUDGE rpr WP(C) NO. 39353 OF 2023 5 APPENDIX OF WP(C) 39353/2023 PETITIONER’S EXHIBITS Exhibit P1 COPY OF CIRCULAR NO. 09/2015 ISSUED BY THE INCOME TAX DEPARTMENT BOARD DTD. 09-06-2015. Exhibit P2 COPY OF APPLICATION FILED BY THEPETITIONER BEFORE THE 2ND RESPONDENT DTD. 14-12-2022. Exhibit P3 COPY OF ORDER ISSUED BY THE 3RD RESPONDENT DTD. 04-04-2023. Exhibit P4 COPY OF APPEAL FILED BY THE PETITIONER BEFORE THE 4TH RESPONDENT DTD. 27-04-2023. Exhibit P5 COPY OF STAYAPPLICATION FILED BY THE PETITIONER BEFORE THE 4TH RESPONDENT DTD. 26- 04-2023. "