CENTRE FOR INNOVATION IN SCIENCE AND SOCIAL ACTION V. UNION OF INDIA,

WP(C)/8819/2024

AI Insights

The case involves the Centre for Innovation in Science and Social Action, a public charitable institution, which sought exemption from income tax under the Income Tax Act, 1961. For the assessment year 2022-23, the petitioner filed a return claiming exemption and a refund of tax deducted at source. However, the return was processed, resulting in a demand for Rs.14,99,860. The petitioner appealed this demand and filed for rectification, fearing immediate recovery actions before the appeal could be considered. The court's decision provides a temporary relief mechanism, allowing the petitioner to file a stay petition which, if filed within the stipulated time, would halt recovery proceedings until a decision is made on the stay.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 731655 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 06-03-2024
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Applicant
• Court: HIGH COURT
• Department Lawyers: JOSE JOSEPH
• Assessee Lawyers: MARY BENJEMIN
• Keywords: Appeal; Exemption from Income Tax; Rectification; Stay Petition; Public charitable institution
• Section: 154; 143(1)

Judgement Text

"IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE GOPINATH P. WEDNESDAY, THE 6TH DAY OF MARCH 2024 / 16TH PHALGUNA, 1945 WP(C) NO. 8819 OF 2024 PETITIONER: CENTRE FOR INNOVATION IN SCIENCE AND SOCIAL ACTION REPRESENTED BY ITS GENERAL SECRETARY DR.MR.C.SURESH KUMAR ,DEEPTHI, WEST OF TEMPLE, PARASSALA P.O, THIRUVANANTHAPURAM, KERALA, PIN – 695 502. BY ADV MARY BENJEMIN RESPONDENTS: 1 UNION OF INDIA, REPRESENTED BY ITS SECRETARY, INCOME TAX DEPARTMENT, MINISTRY OF FINANCE, NEW DELHI, PIN – 110 001. 2 ASSISTANT DIRECTOR OF INCOME TAX, CPC,BANGALORE, PIN – 560 500. 3 INCOME TAX OFFICER (EXEMPTION), O/O THE INCOME TAX OFFICER ,EXEMPTION WARD, AAYAKAR BHAVAN, FIRST FLOOR, KOWDIAR P.O, THIRUVANANTHAPURAM, PIN – 695 003. 4 COMMISSIONER OF INCOME TAX (APPEALS), NATIONAL FACELESS APPEAL CENTRE, DELHI, PIN – 110 001. SRI.JOSE JOSEPH, SC, INCOME TAX DEPARTMENT THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 06.03.2024, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C) NO. 8819 OF 2024 2 JUDGMENT The petitioner claims to be a public charitable institution entitled to exemption from payment of income tax under the provisions of the Income Tax Act, 1961. According to the petitioner, for the assessment year 2022-23, the petitioner filed a return of income claiming exemption from income tax liability and refund of tax deducted at source. It is submitted that the returns filed by the petitioner were processed under Section 143(1) of the Income Tax Act resulting in demand for a sum of Rs.14,99,860/- for the assessment year 2022- 23(Ext.P5). The petitioner has preferred an appeal against Ext.P5. According to the petitioner, it has also filed an application for rectification under Section 154 of the Income Tax Act. The petitioner apprehends that pending consideration of the appeal by the first appellate authority, proceedings may be taken to recover the amounts determined as payable by the petitioner through Ext.P5. It is submitted that the petitioner has not been able to upload a stay petition in the appeal filed against Ext.P5. 2. The learned Standing Counsel appearing for the Income Tax Department would submit that if the petitioner were to file a stay petition in Ext.P6 appeal within a period of two weeks from today, any WP(C) NO. 8819 OF 2024 3 proceedings for recovery of amounts determined as payable in terms of Ext.P5 can be kept in abeyance till a decision is taken on the stay petition by the first appellate authority. 3. Having heard the learned counsel for the petitioner and the learned Standing Counsel appearing for the Income Tax Department, this writ petition will stand disposed of directing that if the petitioner files a stay petition in Ext.P6 appeal, within a period of two weeks from today, the first appellate authority shall consider such stay petition and pass orders on the same after affording an opportunity of hearing to the petitioner. Till such time as orders are passed on the stay petition to be filed by the petitioner as above, any proceedings for recovery of amounts determined as payable by the petitioner in terms of Ext.P5 shall remain suspended. Sd/- GOPINATH P. JUDGE DK WP(C) NO. 8819 OF 2024 4 APPENDIX OF WP(C) 8819/2024 PETITIONER EXHIBITS Exhibit P1 TRUE COPY OF THE INCOME TAX RETURNS SUBMITTED BY THE PETITIONER FOR THE YEAR 2019-2020 ON 31.10.2019 Exhibit P2 TRUE COPY OF THE ASSESSMENT ORDER DATED 04.05.2020 OF THE YEAR 2019-2020 ISSUED BY THE 2ND RESPONDENT Exhibit P3 TRUE COPY OF THE JUDGEMENT DATED 04.04.2023 IN W.P.(C) NO. 12016 OF 2023 Exhibit P4 TRUE COPY OF THE ACKNOWLEDGEMENT NO. 910496120311222 DATED 31.12.2022 OF INCOME TAX RETURNS SUBMITTED BY THE PETITIONER FOR THE ASSESSMENT YEAR 2022- 23 Exhibit P5 TRUE COPY OF THE ASSESSMENT ORDER FOR THE YEAR 2022-23 ISSUED BY THE 2ND RESPONDENT DATED NIL Exhibit P6 TRUE COPY OF THE APPEAL FILED AGAINST EXHIBIT P2,BEFORE THE 4TH RESPONDENT DATED 09.12.2023 Exhibit P7 TRUE COPY OF THE RECTIFIED ORDER DATED 09.01.2024 U/S154, ISSUED BY THE 2ND RESPONDENT Exhibit P8 TRUE COPY OF THE DEMAND NOTICE, ISSUED BY THE 3RD RESPONDENT "