INDIAN RED CROSS SOCIETY V. DEPUTY COMMISSIONER OF INCOME TAX

WP(C)/31520/2022

AI Insights

The case involves the Indian Red Cross Society, a Charitable Society, which sought to claim benefits under Section 12A of the Income Tax Act, 1961 for the assessment year 2015-16. Initially, their claim was rejected as they did not have the required registration under Section 12A at the time of filing their return. Although they obtained the registration in 2019, their subsequent application for rectification of the earlier rejection was also denied. The respondents argued that the application for rectification was delayed and that the statutory remedy of appeal was not pursued in a timely manner. The petitioner contended that the delay should be excused due to the extensions granted during the COVID-19 pandemic.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 749030 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 12-04-2023
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Applicant
• Court: HIGH COURT
• Department Lawyers: CHRISTOPHER ABRAHAM
• Assessee Lawyers: P RAGHUNATHAN; RAMANARAYAN G
• Keywords: Charitable society; Condonation of delay; Income Tax; Rectification; Section 12A
• Section: 154; 143(1); 12A

Judgement Text

"IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE T.R.RAVI WEDNESDAY, THE 12TH DAY OF APRIL 2023 / 22ND CHAITHRA, 1945 WP(C) NO. 31520 OF 2022 PETITIONER: 1 INDIAN RED CROSS SOCIETY RED CROSS TOWER, NAGAMBADAM, PIN - 686002 KOTTAYAM, REP. BY SECRETARY JOBY THOMAS BY ADVS. P.RAGHUNATHAN RAMANARAYANAN G. RESPONDENTS: 1 DEPUTY COMMISSIONER OF INCOME TAX CENTRALISED PROCESSING CENTER, ELECTRONIC CITY POST OFFICE, BANGALORE, PIN - 560100 2 INCOME TAX OFFICER [EXEMPTIONS] PUBLIC LIBRARY BUILDING, SASTRI ROAD , KOTTAYAM, PIN - 686001 BY ADV CHRISTOPHER ABRAHAM THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 12.04.2023, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WPC No.31520 of 2022 2 T.R. RAVI, J. ------------------------------------ W.P.(C.) No.31520 of 2022 ------------------------------------ Dated this the 12th day of April, 2023 JUDGMENT The petitioner, a Charitable Society, claims benefit of Section 12A of the Income Tax Act, 1961 with regard to the assessment year 2015-16. Admittedly, the registration under Section 12A was obtained only in the year 2019. The petitioner has produced the intimation under Section 143(1) of the Income Tax Act issued on 27.03.2017 which shows that the claim for deduction had been rejected. The petitioner submits that no reason is forthwith coming in Ext.P1. However, there is no explanation for the delay in not having taken up the matter after 2017. 2. True, the petitioner applied and got registration in 2019. Much later, the petitioner applied for a rectification of the order issued with regard to the WPC No.31520 of 2022 3 assessment year 2015-16, which has been rejected as per Ext.P4 stating that once the petitioner had filed a return under the status of Trust without having registration under Section 12A and the same has been processed by the CPC, it is not possible for the officer to change the status. 3. In the counter affidavit filed on behalf of the respondent, yet another reason stated is that the application for rectification is delayed. 4. The counsel for the petitioner submits that as far as the delay is concerned, that may not apply since sufficient extension of time had been granted during the Covid situation. 5. After having heard the counsel on either side, I do not think the writ petition can be entertained after five years of the rejection of the claim for deduction as seen from Ext.P1. The petitioner had the statutory remedy of appeal, which according to the petitioner, was not pursued since the petitioner had WPC No.31520 of 2022 4 pursued the remedy of rectification. 6. Considering the fact that, the petitioner is a Charitable Society and the fact that an application for rectification was being pursued after getting registration under Section 12A, interest of justice would be served if the petitioner is permitted to file an appeal with an application for condonation of delay and the same is directed to be considered. The writ petition is hence disposed of directing the petitioner to prefer an appeal against the rejection of the claim for deduction as a Charitable Society and if such appeal is filed within two weeks from today along with petition for condonation of delay, the same shall be considered by the competent authority keeping in mind the fact situation. Sd/- T.R.RAVI JUDGE SKP/12-04 WPC No.31520 of 2022 5 APPENDIX OF WP(C) 31520/2022 PETITIONER’S EXHIBITS: EXHIBIT-P-1 PHOTOCOPY OF INTIMATION U/S 143[1][A] DT. 27.03.2017 FOR 2015.16 EXHIBIT-P-2 PHOTOCOPY OF ORDER GRANTING REGISTRATION U/S 12AA OF THE ACT DT. 31.03.2019 EXHIBIT-P-3 PHOTOCOPY OF APPLICATION FOR RECTIFICATION U/S 154 DT. 22.11.2021 EXHIBIT-P-4 PHOTOCOPY OF LETTER DT. 05.01.2022 REJECTING EXT. P-3 APPLICATION EXHIBIT-P-5 PHOTOCOPY OF APPLICATION FOR RECTIFICATION U/S 154 DT. 08.01.2022 RESPONDENTS' EXHIBITS:NIL TRUE COPY P.A. TO JUDGE "