SAVE A FAMILY PLAN (INDIA) V. DEPUTY COMMISSIONER OF INCOME TAX (EXEMPTIONS)

WP(C)/11036/2023

AI Insights

The case involves Save A Family Plan (India), a trust registered under Section 12A of the Income Tax Act, which filed a writ petition against the Deputy Commissioner of Income Tax (Exemptions) and other tax authorities. The trust had declared its income as nil for the assessment year 2020-21, using it for charitable purposes, which was initially accepted. However, subsequent assessments issued a demand for tax, which the trust contested, leading to the rectification application. The core issue was the inconsistency between the initial nil income assessment and the subsequent tax demand, prompting the trust to seek judicial intervention to halt recovery proceedings and rectify the assessment.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 749230 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 28-03-2023
• Assessment Year: misc
• Laws Referred To: Income Tax Act
• Result in Favour of: Applicant
• Court: HIGH COURT
• Department Lawyers: JOSE JOSEPH
• Assessee Lawyers: ABRAHAM MARKOS; V MARKOS; ISAAC ALEXANDER; JOSEPH SHARAD; JOHN AIBEL; MATHEW SIBY
• Keywords: Assessment; Charitable purposes; Income Tax; Recovery proceedings; Rectification; Trust
• Section: 143(3); 143(1); 12A

Judgement Text

"IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR.JUSTICE ZIYAD RAHMAN A.A. TUESDAY, THE 28TH DAY OF MARCH 2023 / 7TH CHAITHRA, 1945 WP(C) NO. 11036 OF 2023 PETITIONER: SAVE A FAMILY PLAN (INDIA) AGED 46 YEARS AISWARYAGRAM, PARAPPURAM, KANJOOR, ERNAKULAM REPRESENTED BY ITS EXECUTIVE DIRECTOR FR. MARSHEL MELAPPELLY, PIN - 683593 BY ADVS. ABRAHAM JOSEPH MARKOS V.ABRAHAM MARKOS ISAAC THOMAS ALEXANDER JOSEPH MARKOS SHARAD JOSEPH KODANTHARA JOHN VITHAYATHIL AIBEL MATHEW SIBY RESPONDENTS: 1 DEPUTY COMMISSIONER OF INCOME TAX (EXEMPTIONS) CENTRAL REVENUE BUILDING, I.S. PRESS ROAD, KOCHI, PIN - 682018 2 ASSESSMENT UNIT INCOME TAX DEPARTMENT, NATIONAL E-ASSESSMENT CENTRE NEW DELHI, PIN - 110001 3 THE COMMISSIONER OF INCOME TAX CENTRAL REVENUE BUILDING, I.S. PRESS ROAD, KOCHI, PIN - 682018 SRI. JOSE JOSEPH-SC THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 28.03.2023, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C) No.11036/2023 : 2 : JUDGMENT Dated this the 28th day of March, 2023 The petitioner is a Trust registered under Section 12A of the Income Tax Act. For the assessment year 2020-21, the petitioner submitted returns, showing the income as nil, as the income was being used by the Trust for the charitable purposes. The return submitted by the petitioner was accepted as per Ext.P2, by showing the income as nil. Thereafter, Exts.P3 and P4 were issued by the 1st respondent, assessing an amount of `9,89,68,915/- as the tax payable. Being aggrieved by Ext.P4, the petitioner had already submitted Ext.P5 application for rectification, in view of the fact that as per Ext.P2, the income has been determined as nil. This writ petition is submitted in such circumstances as the recovery proceedings are being pursued on the basis of Ext.P4. 2. When the matter came up for consideration, the learned Standing Counsel for the respondent submits that, in the light of Ext.P2 order passed, Ext.P4 has to be reconsidered. WP(C) No.11036/2023 : 3 : Since Ext.P5 application for rectification is pending, it is pointed out that the same shall be considered and appropriate decision will be taken by the 1st respondent. In such circumstances, this writ petition is disposed of directing the 1st respondent to take up and pass appropriate orders on Ext.P5 by taking note of Ext.P2 order passed. A decision thereof shall be taken after hearing the parties, within a period of three months from the date of production of a copy of this judgment. It is further ordered that until such a decision is taken, all further proceedings of recovery pursuant to Ext.P4 shall be kept in abeyance. Sd/- ZIYAD RAHMAN A.A. JUDGE ncd WP(C) No.11036/2023 : 4 : APPENDIX OF WP(C) 11036/2023 PETITIONER EXHIBITS Exhibit P1 TRUE COPY OF THE INTIMATION UNDER SECTION 143(1) DATED 24.12.2021 Exhibit P2 TRUE COPY OF THE ASSESSMENT ORDER UNDER SECTION 143(3) DATED 22.09.2022 ISSUED BY THE 2ND RESPONDENT Exhibit P3 TRUE COPY OF COMPUTATION SHEET DATED 22.09.2022 ISSUED BY THE 2ND RESPONDENT Exhibit P4 TRUE COPY OF THE NOTICE OF DEMAND DATED 22.09.2022 ISSUED BY THE 2ND RESPONDENT Exhibit P5 TRUE COPY OF THE RECTIFICATION PETITION UPLOADED ON 05.01.2023 BY THE PETITONER "