CHHATTISGARH RAJYA BEEJ PRAMANIKARAN SANSTHA V. UNION OF INDIA

WPT/207/2023

AI Insights

The case involves the Chhattisgarh Rajya Beej Pramanikaran Sanstha, a society established under the Seeds Act 1966, seeking judicial intervention to compel the Union of India and various income tax authorities to issue a notification under sub-section (46) of Section 10 of the Income Tax Act 1961, which would exempt its income from tax. The society argued that it met all the necessary conditions for such a notification and had made multiple applications and reminders to the tax authorities, which had not been acted upon. The respondents, represented by the income tax authorities, stated that the application would be considered in accordance with the law. The court found that the authorities had not responded to the applications and directed them to consider the petitioner's request within two months.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 723433 (HC-CHHATTISGARH)
• Appeal Type: Others
• Pronouncement Date: 14-08-2023
• Assessment Year: misc
• Laws Referred To: Income Tax Act 1961, Seeds Act 1966, Societies Registration Act
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: AMIT CHOUDHARI; TOPILAL BARETH
• Assessee Lawyers: S RAO
• Keywords: Delay in compliance; Income tax exemption; Right to Information Act; Notification under Section 10(46)
• Section: 10(46)

Judgement Text

"1 NAFR HIGH COURT OF CHHATTISGARH, BILASPUR WPT No. 207 of 2023 • Chhattisgarh Rajya Beej Pramanikaran Sanstha Through- Aditya Bhole Asna, Managing Director, S/o Shri Samsun Asna, Aged About 61 Years, R.O I G K V Campus, P.S. And P.O. Krishak Nagar, Raipur, C.G. P I N 492-012. ---- Petitioner Versus 1. Union Of India Through Secrertary, Central Board Of Direct Taxes, North Block, New Delhi. 2. Principle Chief Commissiner Of Income-Tax (Exemptions) New Delhi, 25th Floor E-2 Block, Pratyaksh Kar Bhawan, Civic Centre, J.N.L. Marg, New Delhi-110002. 3. Commissioner Of Income Tax (Exemption) Room No. 201, 2nd Floor, Metro Walk Building, Near Bittan Market, E-5, Arera Colony, Bhopal (Madhya Pradesh). 4. Joint Commissioner Of Income Tax (Exemption) Income-Tax Colony, Civil Lines, Raipur, Chhattisgarh 5. Income Tax Officer (Exemption)-1 Income-Tax Colony, Civil Lines Raipur, Chhattisgarh. ---- Respondents For Petitioner : Mr. S. Rajeshwara Rao, Advocate For Respondents : Mr. Amit Choudhari along with Mr. Topilal Bareth, Advocates Hon'ble Shri Justice Rakesh Mohan Pandey Order on Board 14.08.2023 1. The instant writ petition has been filed by the petitioner seeking following relief(s):- 2 “(i) To call for relevant records of the respondents for its kind perusal. (ii) To direct the respondent No. 1 to forthwith notify the petitioner under sub-section (46) of Section 10 of the Income Tax Act Act 1961 with effect from assessment year 2019-20 onwards. (iii) To direct the respondent authority to accept further compliances in the matter of issuance of notification under sub-section (46) of Section 10 of the Act, required if any for issuing notification under sub-section (46) of Section 10 of the Act. (iv) To condone delay in filing all income-tax returns and Audit Reports and other reports/ forms for delay involved in making such compliances by the petitioner is attributable to reasons beyond the control of the petitioner. (v) To stay all the proceedings that may be proposed to be initiated against the petitioner during pendency of present petition. (vi) to pass such other and/ or further order and/or orders as the Hon’ble High Court may deem fit and proper in the facts and circumstances of the case.” 2. The petitioner Society was established on 14.06.2022 by the Government of Chhattisgarh through notification No. 317 and the Society was also registered under the Societies Registration Act on 28.08.2002. The petitioner Society has obtained Permanent Account Number bearing AADAC3163E. The Society was established under Section 8 of the Seeds Act 1966 (hereinafter referred as ‘Act of 1966’) for fulfilment of objectives by Central Seed Certification Board to verify application for certification, to 3 provide inspection of seed fields, seed processing plants, seed lots etc. The petitioner Society derives income from Grants from Government of India and Govt. of Chhattisgarh, contributions from other sources, income from its assets and receipts by way of application and certification fee and other service charges. According to the provisions of sub-section (46) of Section 10 of the Income Tax Act 1961 (herainafter referred as ‘Act of 1961’), the income of the society is exempted from tax and relevant provisions of the Act. 3. Learned counsel for the petitioner submits that the petitioner society fulfills all the stipulated conditions, therefore an application was moved for issuance of a notification under sub-section (46) of Section 10 of the Act of 1961 by way of proper channel i.e. Respondent No. 5 (Income Tax Officer, Exemption) on 30.03.2019, according to the notification dated 24.06.2013 issued by Central Board of Direct Taxes (CBDT). It is submitted that thereafter a reminder was moved on 24.06.2020 and 28.08.2021 and thereafter, an application was moved under Right to Information Act on 07.07.2022 and in response to it, it was informed that the matter relates to Chhattisgarh Rajya Beej Pramanikaran Sashtha and the same process is under examination. He would further submit that a direction may be issued to the respondent authorities to issue a notification under sub-section (46) of Section 10 of the Act of 1961. 4. On the other hand, learned counsel for the respondents would submit that the application of the petitioner Society would be considered strictly in accordance with law. 4 5. I have heard learned counsel for the parties and perused the documents available on record. Sub-section (46) of Section 10 of the Act of 1961 is reproduced hereinbelow:- “10(46) any specified income arising to a body or authority or Board or Trust or Commission (by whatever name called) 2[, or a class thereof] which - (a) has been established or constituted by or under a Central, State or Provincial Act, or constituted by the Central Government or a State Government, with the object of regulating or administering any activity for the benefit of the general public; (b) is not engaged in any commercial activity; and (c) is notified by the Central Government in the Official Gazette for the purposes of this clause. Explanation.- For the purposes of this clause, “specified income” means the income, of the nature and to the extent arising to a body or authority or Board or Trust or Commission (by whatever name called) 2[, or a class thereof] referred to in this clause, which the Central Government may, by notification in the Official Gazette, specify in this behalf;” 6. It appears that the respondents for the reason best-known to them have neither taken any action on the applications filed by the petitioner for being notified under Section 10(46) of the Act of 1961, nor communicated the reason for not considering the applications. The claim of the petitioner for being notified under Section 10(46) of the Act of 1961 has to be examined in light of the applicable rules, circulars and notifications issued by the State from time to time and to pass appropriate order in this regard. 7. Accordingly, the competent respondent authority is directed to consider the applications of the petitioner for being notified under Section 10(46) of the Act of 1961 strictly in accordance with the provisions of the said Act within a 5 further period of two months from the date of receipt of copy of this order. 8. With the aforesaid observation(s) and direction(s), this writ petition stands disposed off. sd/- (Rakesh Mohan Pandey) Judge Vishakha "