SREE CHITRA THIRUNAL COLLEGE OF ENGINEERING V. THE COMMISSIONER OF INCOME TAX

WP(C)/12961/2014

AI Insights

The case involves Sree Chitra Thirunal College of Engineering, a charitable trust, which appealed against the demand notice issued by the Assistant Director of Income Tax (Exemption) for the assessment year 2007-08. The petitioner declared a 'nil' income in its return, despite having gross receipts of over 8 crores, claiming reductions under Sections 11(1)(a) and 11(2)(a) of the Income Tax Act. The demand notice and subsequent coercive actions by the tax authorities led to the filing of this writ petition. The court's decision focused on ensuring a timely review of the stay petition filed by the petitioner.

• Counselvise Citation: [2014] 140 COUNSELVISE.COM (IT) 755723 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 13-10-2014
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961, Travancore Cochin Literacy, Scientific and Charitable Societies' Registration act, 1955
• Result in Favour of: Applicant
• Court: HIGH COURT
• Department Lawyers: JOSE JOSEPH
• Assessee Lawyers: BABU KURUVATHAZHA
• Keywords: Assessment Year 2007-08; Charitable Trust; Coercive Proceedings; Engineering College; Income Tax; Stay Petition
• Section: 11(1)(a); 11(2)(a); 12(A)

Judgement Text

"IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT: THE HONOURABLE MR.JUSTICE P.R.RAMACHANDRA MENON MONDAY, THE 13TH DAY OF OCTOBER 2014/21ST ASWINA, 1936 WP(C).No. 12961 of 2014 (U) -------------------------------------- PETITIONER(S)/PETITIONER: ----------------------------------------- SREE CHITRA THIRUNAL COLLEGE OF ENGINEERING PAPPANAMCODE, THIRUVANANTHAPURAM - 690 018 (REPRESENTED BY ITS PRINCIPAL, DR.SHAJI S. S/O SENADHIPAN, AGED 51 YEARS) BY ADV. SRI.BABU JOSEPH KURUVATHAZHA, SC RESPONDENT(S)/RESPONDENTS: ------------------------------------------------ 1. THE COMMISSIONER OF INCOME TAX (APPEAL) AAYAKAR BHAVAN, KOWDIAR, THIRUVANANTHAPURAM THIRUVANANTHAPURAM - 695 003. 2. THE ASSISTANT DIRECTOR OF INCOME TAX (EXEMPTION), AAYAKAR BHAVAN, KOWDIAR, THIRUVANANTHAPURAM THIRUVANANTHAPURAM - 695 003. BY SRI.JOSE JOSEPH, SC, INCOME TAX THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 13-10-2014, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: SK WP(C).No. 12961 of 2014 (U) --------------------------------------- APPENDIX PETITIONER(S)' EXHIBITS ------------------------------------- EXHIBIT P1 : COPY OF THE PROCEEDING DATED 12.03.2014 ISSUED BY THE 2ND RESPONDENT EXHIBIT P1(A) : COPY OF THE DEMAND NOTICE DATED 12.03.2014 ISSUED ALONG WITH EXT.P1 EXHIBIT P2 : COPY OF THE APPEAL DATED 05.04.2014 SUBMITTED BY THE PETITIONER BEFORE THE 1ST RESPONDENT EXHIBIT P3 : COPY OF THE REQUEST DATED 16.04.2014 SUBMITTED ALONG WTH EXT P2 EXHIBIT P4 : COPY OF THE DEMAND NOTICE DATED 12.05.2014 ISSUED BY THE 2ND RESPONDENT RESPONDENT(S)' EXHIBITS & ANNEXURES -------------------------------------------------------------- ANNEXURE-A : COPY OF THE STAY PETITION DATED 30.05.2014 FILED BEFORE THE 1ST RESPONDENT. ANNEXURE-B : COPY OF THE PETITION DATED 6.6.2014 FILE DBY THE CHARTERED ACCOUNTANT OF THE PETITIONER BEFORE THE 1ST RESPONDENT ALONG WITH ANNEXURE-A //TRUE COPY// P.A. TO JUDGE SK P.R. RAMACHANDRA MENON, J. ======================== W.P.(C). No. 12961 of 2014 -------------------------------------------- Dated this the 13th day of October, 2014 JUDGMENT The petitioner is a Charitable Trust registered under the Travancore Cochin Literacy, Scientific and Charitable Societies' Registration act, 1955 and also under Section 12 A of the Income Tax Act, 1961. The petitioner is engaged in running an Engineering College at Thiruvananthapuram. In respect of the assessment year 2007-08, the petitioner submitted return of income on 10.7.2008, declaring its income as 'nil'. Petitioner had returned gross receipts of ₹ 8,35,33,181/- from which application of income was 6,15,65,202/- ₹ resulting in net surplus of 2,19,67,979/-, claiming reduction of ₹ ₹ 1,25,29,977/- under Section 11(1)(a) and the balance 94,38,002/- ₹ under Section 11(2)(a) of the Income Tax Act, based on the notice in Form No.10 dated 12.6.2008 along with return of income. 2. However, the 2nd respondent issued Ext.P1 assessment order along with Ext.P1(a) demand notice without any regard to the facts and figures. Being aggrieved of this, the petitioner has preferred Ext.P2 appeal before the 1st respondent. Without any regard to the pendency of above proceeding, the 2nd respondent is now proceeding with coercive proceedings as borne by Ext.P4, which hence is sought to W.P.C. No. 12961 of 2014 -2- be intercepted by this Court. In the course of further proceedings, the petitioner has filed 'Annexure A' stay petition before the 1st respondent, a copy of which has been produced along with I.A. No. 13335 of 2014 and the prayer now is only to cause the same to be considered and disposed of within a reasonable time. 3. Heard the learned Standing Counsel for the respondents as well. 4. Considering the facts and circumstances, the first respondent is directed to consider and pass appropriate orders on 'Annexure A' petition for stay, in accordance with law, as expeditiously as possible, at any rate, within 'one month' from the date of receipt of a copy of this judgment. Coercive proceedings pursuant to Ext.P4 shall be kept in abeyance till such time. The petitioner shall produce a copy of this judgment along with a copy of this writ petition before the concerned respondent for further steps. The writ petition is disposed of as above. P.R. RAMACHANDRA MENON, JUDGE. kp/- "