STATE COUNCIL FOR OPEN AND LIFE LONG EDUCATION � KERALA (SCOLE-KERALA) V. THE PRINCIPAL COMMISSIONER OF INCOME TAX

WP(C)/12274/2024

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The case involves the State Council for Open and Life Long Education - Kerala (SCOLE-KERALA), a charitable society, which filed a writ petition against the Income Tax authorities challenging a show cause notice issued under Section 147 of the Income Tax Act, 1961. The petitioner argued that their application for a certificate under Section 12A, necessary for tax exemption, was pending and had not been considered by the tax authorities, while simultaneously, a notice to reopen the assessment for the year 2019-2020 was issued. The court found merit in the petitioner's argument and directed the tax authorities to expedite the consideration of the pending application.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 747639 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 26-03-2024
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961, Travancore Cochin Literary Scientific and Charitable Societies Registration Act, 1955
• Result in Favour of: Applicant
• Court: HIGH COURT
• Department Lawyers: CYRIAC TOM
• Assessee Lawyers: P C SASIDHARAN
• Keywords: Assessment Year; Charitable society; Income tax exemption; Provisional Certificate; Show cause notice
• Section: 147; 12A; 23C

Judgement Text

"IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE DINESH KUMAR SINGH TUESDAY, THE 26TH DAY OF MARCH 2024 / 6TH CHAITHRA, 1946 WP(C) NO. 12274 OF 2024 PETITIONER: STATE COUNCIL FOR OPEN AND LIFE LONG EDUCATION - KERALA (SCOLE-KERALA) REPRESENTED BY ITS SECRETARY, VIDYA BHAVAN, POOJAPPURA, TRIVANDRUM., PIN - 695012 BY ADV P.C.SASIDHARAN RESPONDENTS: 1 THE PRINCIPAL COMMISSIONER OF INCOME TAX O/O THE PRINCIPAL COMMISSIONER OF INCOME TAX, ERNAKULAM, COCHIN, PIN - 682018 2 THE COMMISSIONER OF INCOME TAX (APPEALS) NATIONAL FACELESS APPEAL CENTRE, DELHI, PIN - 110001 3 JOINT COMMISSIONER OF INCOME TAX (EXEMPTION) OFFICE OF THE COMMISSIONER OF INCOME TAX (E), AYANKAR BHAVAN, KAWADIAR, THIRUVANANTHAPURAM., PIN - 695003 SRI. CYRIAC TOM -SC THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 26.03.2024, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WPC No.12274 of 2024 2 JUDGMENT Dated this the 26th day of March, 2024 The present writ petition has been filed by the petitioner impugning Ext.P9 show cause notice issued to the petitioner by the respondent authorities under Section 147 of the Income Tax Act,1961 (hereinafter referred to as ‘the I.T. Act, 1961’). 2. The learned counsel for the petitioner submits that the petitioner society has been established by the State Government for promoting the education to illiterate population. It is a charitable society registered under the provisions of the Travancore Cochin Literary Scientific and Charitable Societies Registration Act, 1955. The petitioner’s income is exempted under the provisions of Section 23C of the I.T. Act, 1961. The petitioner has been issued provisional certificate under Section 12A of the I.T. Act, 1961, from the assessment year 2022-2023 to 2024- 2025 vide certificate dated 07.04.2022. In respect of the relevant assessment year for which the impugned WPC No.12274 of 2024 3 notice has been issued, i.e, 2019-2020, the petitioner has already moved an application for granting certificate under Section 12A of the I.T, Act, 1961 in Ext.P2. The said application has not been disposed of till date and still pending consideration. 3. The learned counsel for the petitioner submits that, on the one hand, the respondent authority is not considering Ext.P2 application and on the the other other hand, they have issued notice under Section 147 to re-open the assessment for the assessment year 2019-2020. 4. The learned counsel for the petitioner further submits that the impugned show cause notice under the said circumstances is to be kept in abeyance till the competent authority takes decision on Ext.P2 application filed by the petitioner seeking certificate under Section 12A for the assessment year 2019-2020. 5. The learned counsel for the Income Tax Department has not disputed the pendency of Ext.P2 for consideration. WPC No.12274 of 2024 4 6. Considering the aforesaid facts and that the petitioner has already been granted provisional certificate for the assessment year 2022-2023 to 2024- 2025, this Court will deem it appropriate to direct the 1st respondent to consider Ext.P2 application expeditiously, and pass order in accordance with law, preferably within a period of two months. 7. The petitioner may inform the authorities regarding the order passed today in this writ petition for deferring the proceedings initiated vide Ext.P9 notice dated 23.02.2024. With the aforesaid directions, the present writ petition stands finally disposed of. Sd/- DINESH KUMAR SINGH JUDGE AP WPC No.12274 of 2024 5 APPENDIX OF WP(C) 12274/2024 PETITIONER EXHIBITS Exhibit P1 TRUE COPY OF THE RELEVANT PAGES OF MEMORANDUM OF ASSOCIATION AND RULES AND REGULATIONS FOR STATE COUNCIL FOR OPEN AND LIFE LONG EDUCATION - KERALA Exhibit P2 TRUE COPY OF THE APPLICATION DATED 28/3/2019 Exhibit P3 TRUE COPY OF THE ACKNOWLEDGMENT RECEIVED FROM THE INCOME TAX DEPARTMENT Exhibit P4 TRUE COPY OF THE LETTER DATED 26-10-2019 ADDRESSED TO THE 3RD RESPONDENTS ALONG WITH ENGLISH TRANSLATION Exhibit P5 TRUE COPY OF THE COVERING LETTER DATED 5- 11-2020 SUBMITTED BY THE PETITIONER ALONG WITH ENGLISH TRANSLATION Exhibit P6 TRUE COPY OF THE PROVISIONAL REGISTRATION ORDER DATED 7/4/2022 Exhibit P7 TRUE COPY OF THE ASSESSMENT ORDER FOR THE ASSESSMENT YEAR 2022-2023 DOWNLOADED FROM THE WEBSITE Exhibit P8 TRUE COPY OF THE REPRESENTATION DATED 17/3/2023 SUBMITTED BEFORE THE PRINCIPAL COMMISSIONER OF INCOME TAX (E), KOCHI Exhibit P9 TRUE COPY OF THE NOTICE DATED 23/2/2024 ISSUED BY THE 2 ND RESPONDENT Exhibit P10 TRUE COPY OF THE EXPLANATION DATED 28/2/2024 SUBMITTED BY THE PETITIONER "