The Knanaya Medical Mission Menathottam Hospital, Angady, Ranny, Pathanamthitta V. The Income Tax Officer, Exemption Ward, Income Tax Department, Alappuzha and Centralized Processing Center, Bengaluru and The Commissioner of Income Tax (Exemption), Ernakulam

WP(C)/27124/2023

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The case involves the Knanaya Medical Mission Menathottam Hospital, which filed a writ petition against the Income Tax Department's decision denying them benefits under Section 11 of the Income Tax Act due to a delay in filing the audit report in Form 10B. The petitioner argued that they had applied for condonation of the delay as per a CBDT circular, but faced an unresolved demand of Rs.14 lakhs based on the initial denial. The respondents acknowledged the backlog in processing such applications but did not contest the need for a decision. The court's intervention was to ensure a timely resolution of the petitioner's application and to temporarily halt the tax demand until a decision was reached.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 684524 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 20-09-2023
• Assessment Year: misc
• Laws Referred To: Section 11 of the Income Tax Act
• Result in Favour of: Applicant
• Court: HIGH COURT
• Department Lawyers: CHRISTOPHER ABRAHAM
• Assessee Lawyers: HARISANKAR MENON; MEERA MENON; R; K KRISHNA; PARVATHY MENON
• Keywords: Condonation of delay; Delay in filing audit report; Exemption under Income Tax
• Section: 11

Judgement Text

"IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE DINESH KUMAR SINGH WEDNESDAY, THE 20TH DAY OF SEPTEMBER 2023 / 29TH BHADRA, 1945 WP(C) NO. 27124 OF 2023 PETITIONER/S: THE KNANAYA MEDICAL MISSION MENATHOTTAM HOSPITAL, ANGADY, RANNY, PATHANAMTHITTA - 689 674, REPRESENTED BY ITS MANAGING COMMITTEE MEMBER, M.K. ABRAHAM, PIN - 689674 BY ADVS.HARISANKAR V. MENON MEERA V.MENON; R.SREEJITH K.KRISHNA; PARVATHY MENON RESPONDENT/S: 1 THE INCOME TAX OFFICER, EXEMPTION WARD, INCOME TAX DEPARTMENT, ALAPPUZHA, PIN - 688001 2 CENTRALIZED PROCESSING CENTER 1ST FLOOR, BERATENAAGRAHARA BEGUR, HOSUR ROAD, UTTARAHALLI HOBLI, BENGALURU, PIN - 560100 3 THE COMMISSIONER OF INCOME TAX (EXEMPTION)INCOME TAX DEPARTMENT, SANJUAN TOWERS, ERNAKULAM, KOCHI, PIN - 682010 BY ADV CHRISTOPHER ABRAHAM SC IT THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 20.09.2023, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: W.P.(C) No.27124/2023 -2- J U D G M E N T The present writ petition is filed impugning Ext.P7 order passed by the 1st respondent denying the benefit of Section 11 to the petitioner on the ground of delay in filing the audit report in Form 10B. 2. Learned Counsel for the petitioner submits that the petitioner has filed an application before the Commissioner of Income Tax (Exemption) as per the Circular dated 19.07.2022 issued by the CBDT in this respect. The delay in filing the audit report is 74 days. Till date, no order has been passed, and the petitioner is being faced with the demand of Rs.14 lakhs in pursuance of Ext.P7 order. 3. Mr Christopher Abraham, learned Counsel for the respondents, submits that the application for condonation of delay dated 19.06.2023 is still pending consideration, and as there is a huge backlog of such applications, it is taking some time to pass appropriate orders. W.P.(C) No.27124/2023 -3- 4. Considering the said submission, the present writ petition is disposed of with a direction to the 3rd respondent to decide the application of the petitioner (Ext.P6) for condoning the delay in filing the Form 10B application on time, expeditiously. Till the decision is taken on the said application, the demand of arrears of tax in pursuance of the Ext.P7 order shall not be given effect to. With aforesaid, the present petition stands disposed of. Sd/- DINESH KUMAR SINGH JUDGE jjj W.P.(C) No.27124/2023 -4- APPENDIX OF WP(C) 27124/2023 PETITIONER EXHIBITS Exhibit P1 COPY OF RETURN OF INCOME ALONG WITH STATEMENT OF INCOME FILED BY THE PETITIONER DTD. 15-02-2021 Exhibit P2 COPY OF AUDIT REPORT OF THE PETITIONER IN FORM NO.10B DTD. 29-03-2021 Exhibit P3 COPY OF RETURN OF INCOME ALONG WITH STATEMENT OF INCOME FILED BY THE PETITIONER DTD. 31-03-2021 Exhibit P4 COPY OF INTIMATION ISSUED BY THE 2ND RESPONDENT DTD. 30-11-2021 Exhibit P5 COPY OF CIRCULAR NO. 16/22 ISSUED BY GOVERNMENT OF INDIA, NEW DELHI DTD. 19-07-2022 Exhibit P6 COPY OF APPLICATION FOR COHNDONATION OF DELAY FILED BY THE PETITIONER DTD. 19-06-2023 Exhibit P7 COPY OF LETTER ISSUED BY THE 1ST RESPONDENT DTD. 11-07-2023 Exhibit P8 COPY OF JUDGMENT IN WEPC NO. 6897 OF THIS HON'BNLE COURT DTD. 02-03-2023 "