MUSLIM EDUCATIONAL ASSOCIATION V. THE DEPUTY COMMISSIONER OF INCOME TAX (EXEMPTION)

WP(C)/12203/2021

AI Insights

The case involves the Muslim Educational Association, a Public Charitable Trust, which sought benefits under Section 11 of the Income Tax Act, 1961 for the assessment year 2017-2018. The Trust filed a statement in Form 10 late, resulting in an assessment order (Ext.P1) that denied these benefits and demanded tax. After appealing and paying a portion of the demanded tax, the delay in filing Form 10 was condoned (Ext.P5), leading the Trust to file a rectification application (Ext.P6) and request a refund. The writ petition sought a directive for the Deputy Commissioner of Income Tax (Exemption) to expedite the decision on the rectification application.

• Counselvise Citation: [2021] 140 COUNSELVISE.COM (IT) 753067 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 15-06-2021
• Assessment Year: misc
• Laws Referred To: Income Tax Act 1961
• Result in Favour of: Applicant
• Court: HIGH COURT
• Department Lawyers: JOSE JOSEPH
• Assessee Lawyers: HARISANKAR MENON; MEERA MENON
• Keywords: Assessment Year 2017-2018; Delay condonation; Form 10; Income Tax; Public charitable trust; Rectification petition
• Section: 154; 11

Judgement Text

"IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR.JUSTICE V.G.ARUN TUESDAY, THE 15TH DAY OF JUNE 2021 / 25TH JYAISHTA, 1943 WP(C) NO. 12203 OF 2021 PETITIONER/S: MUSLIM EDUCATIONAL ASSOCIATION VENGOOR,PATTIKKAD,PERINTHALMANNA, REPRESENTED BY ITS GENERAL SECRETARY, SYED SADIK ALI SHIHAB. BY ADVS. HARISANKAR V. MENON MEERA V.MENON RESPONDENT/S: 1 THE DEPUTY COMMISSIONER OF INCOME TAX (EXEMPTION) 2ND FLOOR,SAN-JUAN TOWERS,I.S.PRESS ROAD,ERNAKULAM,KOCHI- 682018. 2 NATIONAL FACELESS APPEAL CENTRE, DELHI-110001,REPRESENTED BY THE PRINCIPAL CHIEF COMMISSIONER. OTHER PRESENT: SC JOSE JOSEPH THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 15.06.2021, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C) NO. 12203 OF 2021 2 JUDGMENT Dated this the 15th day of June, 2021 The petitioner, a Public Charitable Trust registered under the Income Tax, is entitled for the benefits under Section 11 of the Income Tax Act 1961 with respect to the Income held for charitable/ religious purposes. The benefit will be extended only on the assessee filing a statement in Form 10. For the assessment year 2017 -2018, the statement in Form 10 was filed by the petitioner belatedly. On account of the delay, petitioner was issued with Ext.P1 assessment order, without extending the benefits and demanding an amount of Rs.1,32,13,830/- towards the tax due. Aggrieved by the assessment, the petitioner has preferred an appeal and stay application. Pending the appeal, the petitioner remitted an amount of Rs. 20,000,00/- voluntarily towards the tax demanded under Ext.P1. While so, the Commissioner of Income Tax (Exemption), Kochi issued Ext.P5 order condoning the delay in filing the Form 10. According to the petitioner, on condonation of the delay in filing Form 10, he became eligible for the benefits under Section 11 and therefore the assessment as per WP(C) NO. 12203 OF 2021 3 Ext.P1 is liable to be corrected. Hence, the petitioner filed Ext.P6 application for rectification under Section 154 and also requested for refund of the amount paid voluntarily. The limited relief sought in this writ petition is for a direction to the 1st respondent to pass orders on Ext.P6 without delay. 2. I have heard the learned standing counsel for the Income Tax Department also. Taking into account the limited relief sought, the writ petition is disposed of directing the 1st respondent to consider Ext.P6 with notice to the petitioner and to pass orders thereon as expeditiously as possible and at any rate within a period of two months from the date of receipt of a copy of this judgment. Till such time as the orders are passed on Ext.P6, recovery steps based on Ext.P1 shall be kept in abeyance. The writ petition is disposed as above. Sd/- V.G ARUN JUDGE SJ WP(C) NO. 12203 OF 2021 4 APPENDIX OF WP(C) 12203/2021 PETITIONER ANNEXURE Exhibit P1 COPY OF ORDER ISSUED BY THE CENTRALIZED PROCESSING CENTRE,BENGALURU FOR THE YEAR 2017- 18 Exhibit P2 COPY OF THE APPEAL FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT Exhibit P3 COPY OF STAY PETITION FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT. Exhibit P4 COPY OF THE TAX PRAYER'S COUNTERFOIL GENERATED BY THE HDFC BANK. Exhibit P4(A) COPY OF THE TAX PRAYER'S COUNTERFOIL GENERATED BY THE HDFC BANK. Exhibit P4(B) COPY OF THE TAX PRAYER'S COUNTERFOIL GENERATED BY THE HDFC BANK . Exhibit P4(C) COPY OF THE TAX PRAYER'S COUNTERFOIL GENERAL BY THE HDFC BANK. Exhibit P5 COPY OF ORDER ISSUED BY THE COMMISSIONER OF INCOME TAX(EXEMPTION),KOCHI. Exhibit P6 COPY OF RECTIFICATION PETITION FILED BY THE 1ST RESPONDENT Exhibit P7 COPY OF ARGUMENT NOTE FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT. "