THE COMMISSIONER OF INCOME TAX V. NEW MANGALORE PORT TRUST

ITA/146/2008

AI Insights

The case involves the Commissioner of Income Tax as the appellant and New Mangalore Port Trust as the respondent. The core issue was the challenge by the Revenue against the Tribunal's decision which allowed the New Mangalore Port Trust's registration under Section 12A of the Income Tax Act, 1961, despite a delay in application. The Tribunal had found that the delay was bona fide, considering the circumstances under which the Trust operated and the legislative changes that affected its tax-exempt status. The High Court of Karnataka upheld the Tribunal's decision, dismissing the appeal by the Revenue.

• Counselvise Citation: [2014] 140 COUNSELVISE.COM (IT) 738559 (HC-KARNATAKA)
• Appeal Type: Others
• Pronouncement Date: 07-10-2014
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Revenue
• Court: HIGH COURT
• Department Lawyers: M V SESHACHALA; ARAVIND CHAVAN
• Assessee Lawyers: JEEVAN NEERALGI
• Keywords: Condonation; Condonation; Delay; Exemption; Income Tax; Registration
• Section: 12A; 260A; 10(20)

Judgement Text

" 1 IN THE HIGH COURT OF KARNATAKA AT BANGALORE DATED THIS THE 07TH DAY OF OCTOBER, 2014 PRESENT HON' BLE MR. JUSTICE N.KUMAR AND HON' BLE MR. JUSTICE B.MANOHAR ITA NO.146 OF 2008 BETWEEN THE COMMISSIONER OF INCOME TAX C.R.BUILDING, ATTAVAR MANGALORE .. APPELLANT (By Sri.JEEVAN J.NEERALGI – ADV.) AND NEW MANGALORE PORT TRUST PANAMBUR MANGALORE ... RESPONDENT (BY SRI.M.V.SESHACHALA – SR.ADV FOR SRI. ARAVIND V.CHAVAN – ADV. ) THIS ITA IS FILED U/S.260A OF THE INCOME TAX ACT, 1961 PRAYING TO ALLOW THE APPEAL AND SET ASIDE THE ORDER PASSED BY THE INCOME TAX APPELLATE TRIBUNAL, BANGALORE BENCH ‘B’ IN ITA NO.924/BANG/2006 DATED 28.9.2007 AND ETC. THIS ITA COMING ON FOR HEARING THIS DAY, N.KUMAR J., DELIVERED THE FOLLOWING: 2 J U D G M E N T The Revenue has preferred this appeal challenging the order passed by the Tribunal directing registration of the assessee under Section 12A of the Income Tax Act, 1961 (for short ‘the Act’) with effect from 1.4.2003. 2. The assessee is one of the major port trust in the country. It was notified in the official gazette as a major port with effect from 1.4.1980. Since the inception as a trust, the assessee has been enjoying exemptions from income tax in terms of the provisions of Sub Section (20) of Section 10 of the Act. Consequent to the amendment brought to Section 10(20) of the Act by introducing explanation with effect from 1.4.2003, the term ‘local authority’ has been given retrospective meaning. By virtue of the amendment, exemption which was enjoyed by the assessee came to an end. Thereafter the assessee applied for registration under Section 12A of the Act by filing an application in Form No.10A on 27.3.2006. There was a delay in making the 3 said application. Therefore, the Commissioner of Income Tax, Mangalore by his order dated 28.8.2006 denied registration on the ground of delay by refusing to condone the delay. Aggrieved by the said order, the assessee preferred an appeal to the Tribunal. The Tribunal after considering the material placed on record, the nature of activity performed by the assessee and after taking note of the fact that the assessee was enjoying the benefit of exemption from the provisions of the Act upto 1.4.2003 and subsequently they made an application in the prescribed form, which could be done only after obtaining requisite permission from the Central Government, found there was no malifides in not filing the application within the time prescribed. Therefore, it condoned the delay and directed registration under Section 12A of the Act. Aggrieved by the said order the Revenue is in appeal before this Court. 4 3. Learned counsel for the revenue assailing the impugned order contended, the delay in approaching the authorities for registration is not properly explained and the Tribunal was not justified in condoning the delay in filing application. 4. We do not see any merit in the said submission. 5. We have gone through the entire order. The Tribunal has taken pains to set out the facts of the case, the relevant provisions, the amendment, the object with which the trust is established, the judgments on which reliance is placed and later has rightly come to the conclusion that the delay is a bonafide one and therefore, it requires to be condoned. It has also taken note of the parliamentary legislation which was passed by the Government Major Ports. the nature of work the assessee is carrying on, the way in which they are protecting the interest of the country, the lengthy coast line in the west and in the east and held that therefore, it is entitled to registration under Section 12A of the 5 Act. The order passed by the Tribunal is flawless. We do not see any justification to interfere with the said order. Accordingly we do not see merit in the appeal. No substantial question of law arises for consideration. Accordingly, appeal is dismissed. Sd/- JUDGE Sd/- JUDGE rs "