Muslim Education Trust for Coastal Area (METCA) V. Union of India and Central Board of Direct Taxes and Chief Commissioner of Income Tax (Exemption) and Assistant Director of Income Tax (Exemption) and Deputy Director of Income Tax

WP(C)/18375/2023

AI Insights

The case involves the Muslim Education Trust for Coastal Area (METCA), represented by its chairman, A. Sainulabdeen, who filed a writ petition against the Union of India and other respondents concerning procedural delays in tax filings. The petitioner sought to direct the third respondent to expedite the consideration of their application (Ext P7) to condone the delay in filing Form No.10B, which was caused by an error from their Chartered Accountant. This delay affected their ability to upload an audit report on time, leading to the issuance of an assessment order (Ext P5) and a rectification order (Ext P8) by the tax authorities. The petitioner feared enforcement of these orders before their application could be considered, prompting the writ petition.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 813570 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 08-06-2023
• Assessment Year: misc
• Laws Referred To: Income Tax Act
• Result in Favour of: Applicant
• Court: HIGH COURT
• Department Lawyers: CHRISTOPHER ABRAHAM
• Assessee Lawyers: GEET MATHEW
• Keywords: Assessment Order; Audit report; Condone delay; Form No. 10B; Rectification Order
• Section: 154; 143(1)

Judgement Text

"1 WP(C) No.18375 of 2023 IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR.JUSTICE C.S.DIAS THURSDAY, THE 8TH DAY OF JUNE 2023 / 18TH JYAISHTA, 1945 WP(C) NO. 18375 OF 2023 PETITIONER/S: MUSLIM EDUCATION TRUST FOR COASTAL AREA (METCA) CHAVARKODE, PALAYAMKUNNU POST, AYIROOR VILLAGE, VARKALA TALUK, THIRUVANANTHAPURAM DISTRICT. REPRESENTED BY ITS CHAIRMAN, A. SAINULABDEEN, S/O. ABDUL MAJEED, AGED 62 YEARS, MUSLIM EDUCATION TRUST FOR COASTAL AREA (METCA), CHAVARKODE, PALAYAMKUNNU POST, AYIROOR VILLAGE, VARKALA TALUK, THIRUVANANTHAPURAM DISTRICT., PIN - 695146 BY ADVS. GEEN T.MATHEW O.RAMACHANDRAN NAMBIAR RESPONDENT/S: 1 UNION OF INDIA REPRESENTED BY THE SECRETARY, DEPARTMENT OF REVENUE, MINISTRY OF FINANCE, GOVERNMENT OF INDIA, NEW DELHI G.P.O POST, NEW DELHI DISTRICT, DELHI STATE., PIN - 110001 2 CENTRAL BOARD OF DIRECT TAXES REPRESENTED BY ITS CHAIRPERSON, DEPARTMENT OF REVENUE, MINISTRY OF FINANCE, GOVERNMENT OF INDIA 6TH FLOOR, MAYUR BHAWAN, CONNAUGHT CIRCUS NEW DELHI G.P.O POST, NEW DELHI DISTRICT, DELHI STATE., PIN - 110001 3 CHIEF COMMISSIONER OF INCOME TAX (EXEMPTION) OFFICE OF THE CHIEF COMMISSIONER OF INCOME TAX CENTRAL REVENUE BUILDING, IS PRESS ROAD, ERNAKULAM NORTH POST, ERNAKULAM DISTRICT., PIN - 682018 4 ASSISTANT DIRECTOR OF INCOME TAX (EXEMPTION) OFFICE OF THE COMMISSIONER OF INCOME TAX, AAYAKAR BHAVAN, KAWDIAR, THIRUVANANTHAPURAM DISTRICT., PIN - 695003 5 DEPUTY DIRECTOR OF INCOME TAX CENTRALIZED PROCESSING CENTRE INCOME TAX DEPARTMENT, BENGALURU, KARNATAKA STATE., PIN – 560500 BY ADV.CHRISTOPHER ABRAHAM- R2 TO R5 THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 08.06.2023, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: 2 WP(C) No.18375 of 2023 C.S DIAS,J. --------------------------- WP(C) No.18375 of 2023 ----------------------------- Dated this the 8th day of June, 2023 . JUDGMENT The writ petition is filed, inter alia, to direct the third respondent to consider and dispose of Ext P7 application to condone the delay in filing Form No.10B, expeditiously and until such time to defer further proceedings pursuant to Ext P5 demand and Ext P8 rectification order. 2. The petitioner’s case is that, due to an error on the part of the Chartered Accountant, they could not upload the audit report on time. The petitioner has now received Ext P5 assessment order issued by the fifth respondent under Sec.143 (1) and Ext P8 3 WP(C) No.18375 of 2023 rectification order issued by the third respondent under Sec.154 of the Income Tax Act. The petitioner has submitted Ext P7 application before the third respondent to condone the delay in filing Form No.10B. The said application is pending consideration since 2.3.2023. The petitioner apprehends that the respondents may now enforce Exts P5 and P8. Hence, the writ petition. 3. Heard; Sri.Geen T. Mathew, the learned counsel appearing for the petitioner and Sri.Christopher Abraham, the learned counsel appearing for the respondents 2 to 5. 5. Having considered the pleadings and materials on record and taking note of the fact that Ext P7 application to condone the delay in filing Form 4 WP(C) No.18375 of 2023 No.10B is pending consideration before the third respondent, I deem it appropriate to dispose of the writ petition in the following manner: (i) The third respondent is directed to consider and dispose of Ext P7 application, in accordance with law and as expeditiously as possible, at any rate within a period of three months from the date of receipt of a certified copy of the judgment, after affording the petitioner an opportunity of being heard. (ii) Until such time orders are passed on Ext P7 application, all further proceedings pursuant to Exts P5 and P8 shall stand deferred. SD/- sks/8.6.2023 C.S.DIAS, JUDGE 5 WP(C) No.18375 of 2023 APPENDIX OF WP(C) 18375/2023 PETITIONER EXHIBITS Exhibit P1 TRUE COPY OF THE ORDER NO.C.NO.301/DDIT(E)/TVM-8/2003-04 DATED 17.11.2003 ISSUED BY THE 4TH RESPONDENT. Exhibit P2 TRUE COPY OF THE ORDER NO.AAATM8857DE2021701 DATED 24.09.2021 ISSUED BY THE COMMISSIONER OF INCOME TAX. Exhibit P3 TRUE COPY OF THE INDIAN INCOME TAX RETURN ACKNOWLEDGEMENT NO.622842250071022 IN ITR-7 DATED 07.10.2022 FOR THE ASSESSMENT YEAR 2022-23. Exhibit P4 TRUE COPY OF THE FORM NO.10B AS PER ACKNOWLEDGMENT NO.226486312300922 DATED 30.09.2022. Exhibit P5 TRUE COPY OF THE DEMAND FOR ASSESSMENT YEAR 2022-23 ISSUED BY THE 5TH RESPONDENT UNDER SECTION 143(1) OF THE INCOME TAX ACT, 1961 DATED 04.04.2023. Exhibit P6 TRUE COPY OF THE CIRCULAR NO.16/2022 DATED 19.07.2022 ISSUED BY THE 1ST RESPONDENT. Exhibit P7 TRUE COPY OF THE PETITION FOR CONDONATION OF DELAY IN FILING FORM NO.10B DATED 02.03.2023 BEFORE THE 3RD RESPONDENT. Exhibit P8 TRUE COPY OF THE RECTIFICATION ORDER DATED 18.05.2023 ISSUED BY THE 3RD RESPONDENT. "