HOLY CROSS FORANE CHURCH CHERPUNKAL, V. PRINCIPAL COMMISSIONER OF INCOME TAX ,

WP(C)/19557/2021

AI Insights

The case involves Holy Cross Forane Church Cherpunkal, a religious and charitable trust, which challenged an assessment order issued by the income tax authorities. The main grievances included improper reliance on unrelated High Court judgments, erroneous conclusions about the nature of agricultural land, and the inclusion of an unnoted addition of Rs.8,00,000 in the assessment. The court, after considering the arguments and the legal framework, decided that the petitioner should not bypass the statutory appellate process and instead should utilize the available legal remedies.

• Counselvise Citation: [2021] 140 COUNSELVISE.COM (IT) 751754 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 30-09-2021
• Assessment Year: misc
• Other Referred Cases: G.Veerappa Pillai Proprietor, Sathi Vilas Bus Service, Porayar, Tanjore District, Madras v. Raman and Raman Ltd., Kumbakonam, Tanjore District and Others (AIR 1952 SC 192), Assistant Commissioner of State Tax and Others v. M/s.Commercial Steel Ltd. (C.A. No.5121 of 2021)
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Revenue
• Court: HIGH COURT
• Department Lawyers: JOSE JOSEPH
• Assessee Lawyers: A KUMAR; P J ANILKUMAR; G MINI; P S SREE PRASAD; JOB ABRAHAM; AJAY ANAND
• Keywords: Article 226 of the Constitution of India; Assessment Order; Extraordinary jurisdiction; Religious and charitable trust; Statutory remedies
• Section: 12A(a)

Judgement Text

"IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE BECHU KURIAN THOMAS THURSDAY, THE 30TH DAY OF SEPTEMBER 2021 / 8TH ASWINA, 1943 WP(C) NO. 19557 OF 2021 PETITIONER: HOLY CROSS FORANE CHURCH CHERPUNKAL, CHERPUNKAL P.O., KOTTAYAM-686 584, REPRESENTED BY ITS TRUSTEE MR.THOMAS MATHEW ARAMPULICKAL. BY ADVS. SRI.A.KUMAR SRI.P.J.ANILKUMAR SMT.G.MINI(1748) SRI.P.S.SREE PRASAD SRI.JOB ABRAHAM SRI.AJAY V.ANAND RESPONDENTS: 1 PRINCIPAL COMMISSIONER OF INCOME TAX , PUBLIC LIBRARY BUILDING, LAL BAHADUR SASTRI ROAD, KOTTAYAM-686 001. 2 NATIONAL FACELESS ASSESSMENT CENTRE, NORTH BLOCK, NEW DELHI-110 001, REPRESENTED BY PRINCIPAL CHIEF COMMISSIONER. 3 ADDITIONAL COMMISSIONER, NATIONAL FACELESS ASSESSMENT CENTRE, NORTH BLOCK, NEW DELHI-110 001. W.P.(C) No.19557/21 -:2:- SRI.JOSE JOSEPH-SC THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 20.09.2021, THE COURT ON 30.09.2021 DELIVERED THE FOLLOWING: W.P.(C) No.19557/21 -:3:- BECHU KURIAN THOMAS, J. ----------------------------------------- W.P.(C) No.19557 of 2021 ---------------------------------------- Dated this the 30th day of September, 2021 JUDGMENT Petitioner, a religious and charitable trust registered under section 12A(a) of the Income Tax Act, 1961, challenges Ext.P9 order of assessment dated 12.08.2021 for the assessment year 2018-19. 2. Learned counsel for the petitioner Adv. A.Kumar has raised various contentions assailing the order of assessment. The main contention was that the expenditure incurred on construction of the building, land development and construction of compound wall were duly recorded in the books of accounts of the Trust and that without relying upon the judgments of the jurisdictional High Court, which are in favour of the petitioner, the assessing officer has relied upon judgments of other High Courts, that too, which have no relation to the facts arising in the instant case. It was also argued that in relation to the sale of agricultural land, which falls outside the definition of a capital asset, the assessment order fails to consider the reply of the petitioner and instead relies upon the letter of the Sub Registrar for W.P.(C) No.19557/21 -:4:- concluding the nature of the land, thereby rendering the entire assessment order as perverse. It is further argued that the issue relating to addition of Rs.8,00,000/-, which was never the subject matter of notice nor in the proceedings for assessment has found its way into the order of assessment, thereby vitiating the assessment order itself. On the aforesaid basis, it is contended by the learned counsel for petitioner that this is a fit case for invoking the jurisdiction under Article 226 of the Constitution of India. 3. I have heard learned counsel for the petitioner, Adv.A.Kumar as well as Adv. Jose Joseph, learned Standing Counsel for the respondents. 4. Having bestowed my anxious consideration to the contentions raised by the petitioner, I find that this is not a fit case to invoke the extraordinary jurisdiction of this Court under Article 226 of the Constitution of India after bypassing the statutory remedies available to the petitioner. The normal course of remedy open to every assessee is to move the statutory appellate authorities, except in very limited and exceptional circumstances like a breach of fundamental rights or violation of the principles of natural justice or if the order is passed in excess of jurisdiction or when there is a W.P.(C) No.19557/21 -:5:- challenge to the constitutionality of the statute in question. (See G.Veerappa Pillai Proprietor, Sathi Vilas Bus Service, Porayar, Tanjore District, Madras v. Raman and Raman Ltd., Kumbakonam, Tanjore District and Others (AIR 1952 SC 192) and Assistant Commissioner of State Tax and Others v. M/s.Commercial Steel Ltd. (C.A. No.5121 of 2021). 5. Having regard to the contentions raised by the learned counsel for the petitioner as well as the facts arising in the case, I am of the view that none of the circumstances mentioned above exists in the instant case warranting interference under Article 226 of the Constitution of India and that the petitioner can be relegated to the remedy of statutory appeal. Hence this writ petition stands dismissed reserving liberty of the petitioner to pursue appropriate statutory remedies. Sd/- BECHU KURIAN THOMAS JUDGE vps W.P.(C) No.19557/21 -:6:- APPENDIX OF WP(C) 19557/2021 PETITIONER'S/S' EXHIBITS EXHIBIT P1 TRUE COPY OF THE REGISTRATION CERTIFICATE ISSUED BY INCOME TAX AUTHORITIES DATED 12.02.1974. EXHIBIT P2 TRUE COPY OF THE PAN CARD DATED NIL. EXHIBIT P3 TRUE COPY OF THE ITR RETURN FOR AY 2018- 19 DATED 08.10.2018. EXHIBIT P4 TRUE COPY OF THE ACKNOWLEDGMENT DATED 08.10.2018. EXHIBIT P5 TRUE COPY OF THE RECEIPT EVIDENCING PAYMENT TO THE AGRICULTURAL WORKERS WELFARE FUND BY PETITIONER. EXHIBIT P5(a) TRUE COPY OF THE RECEIPT EVIDENCING PAYMENT TO THE AGRICULTURAL WORKERS WELFARE FUND BY PURCHASER LAND. EXHIBIT P6 TRUE COPY OF THE DRAFT ASSESSMENT ORDER DATED 23.04.2021. EXHIBIT P7 TRUE COPY OF THE REPLY DATED 02.05.2021. EXHIBIT P8 TRUE COPY OF THE STATEMENT OF THE PURCHASER DATED NIL. EXHIBIT P9 TRUE COPY OF ASSESSMENT ORDER DATED 12.08.2021. EXHIBIT P10 TRUE COPY OF NOTICE OF DEMAND DATED 12.08.2021. EXHIBIT P11 TRUE COPY OF PENALTY NOTICE DATED 12.08.2021. EXHIBIT P12 TRUE COPY OF THE JUDGMENT DATED 02.07.1987 OF THIS HON'BLE COURT IN 1988 170 ITR 62 KER. EXHIBIT P13 TRUE COPY OF THE JUDGMENT DATED 12.02.2019 OF HON'BLE MADRAS HIGH COURT IN 310 CTR 483 (MAD.) W.P.(C) No.19557/21 -:7:- EXHIBIT P14 TRUE COPY OF THE JUDGMENT DATED 09.08.1995 OF HON'BLE KARNATAKA HIGH COURT IN (2000) 162 CTR KAR 261. "