Tulsi Gramodhyog Seva Samiti Thru.President Pradeep Agarwal V. Principal Chief Commissioner Of Income Tax And 2 Others

/3/2022

AI Insights

The case involves M/S Tulsi Gramodhyog Seva Samiti, represented by President Pradeep Agarwal, challenging notices issued under Section 221(1) of the Income Tax Act, 1961, for non-payment of demanded amounts for the assessment years 2018-19 and 2019-20. The petitioner argued that their registration under Section 12AA and 80G(5)(vi) of the Income Tax Act, which was crucial for tax exemptions, was improperly considered in the penalty notices, especially after a favorable ruling from the Income Tax Appellate Tribunal that set aside the cancellation of their registration. The court acknowledged the pending appeals and the ongoing proceedings regarding the petitioner's tax exemptions and directed the petitioner to seek interim relief from the Commissioner of Income Tax (Appeals).

• Counselvise Citation: [2022] 140 COUNSELVISE.COM (IT) 682850 (HC-LUCKNOW)
• Appeal Type: Others
• Pronouncement Date: 11-01-2022
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961, Society Registration Act, 1860
• Result in Favour of: Applicant
• Court: HIGH COURT
• Department Lawyers: MANISH MISRA
• Assessee Lawyers: PUNEET CHANDRA; MOHIT CHANDRA; SHOBHIT NIGAM
• Keywords: Adjudication; Appeal; Cancellation; Coercive Action; Commissioner; Consideration; Exemptions; Income Tax; Interim relief; Non-payment; Penalty; Registration; Show Cause; Tribunal
• Section: 143(3); 12AA; 80G(5)(vi); 221(1)

Judgement Text

"Court No. - 2 Case :- WRIT TAX No. - 3 of 2022 Petitioner :- M/S Tulsi Gramodhyog Seva Samiti Thru.President Pradeep Agarwal Respondent :- Principal Chief Commissioner Of Income Tax And 2 Others Counsel for Petitioner :- Puneet Chandra,Mohit Chandra,Shobhit Nigam Counsel for Respondent :- Manish Misra Hon'ble Devendra Kumar Upadhyaya,J. Hon'ble Subhash Vidyarthi,J. Heard Sri Puneet Chandra, learned counsel for the petitioner and Sri Manish Misra, learned counsel representing the respondents. By means of instant writ petition, the petitioner has challenged the impugned notices dated 21.12.2021 issued by the opposite party No.3 under Section 221(1) of the Income Tax Act, 1961, directing the petitioner to show cause as to why the penalty may not be levied for non-payment of demanded amount under Section 143(3) of the said Act for the assessment year 2018-19 and 2019-20. The petitioner has already submitted a reply to the aforesaid notices, stating that petitioner's Society is registered under the Society Registration Act, 1860 and it was grated a registration under Section 12AA and 80G (5)(vi) of the Income Tax Act, 1961. The petitioner's registration was cancelled and he preferred an appeal before the Income Tax Appellate Tribunal which was allowed by the Tribunal on 07.12.2018 setting aside the order of cancellation of its registration under Section 12AA and 80G(5)(vi) and the matter was remanded to the Commissioner of Income Tax (Exemptions) for reconsideration afresh. After remand, no fresh order has been passed by the Commissioner of Income Tax (Exemptions) and as such the petitioner continues to be registered under Section 12AA and 80G(5)(vi) of the Income Tax Act. However, notice demanding penalty has been issued for the assessment year 2018-19 and 2019-20 ignoring the order dated 07.12.2018, passed by the Income Tax Appellate Tribunal. Notice for penalty is, therefore, not sustainable. The petitioner has, however, stated that its Bank Account has already been seized and any demand without proper adjudication and consideration of the matter is bad in the eyes of law which needs to be set aside. The reply submitted by the petitioner is still pending consideration before the Exemptions Ward of the Income Tax Department, Lucknow. It has been brought to the notice of the court that against the assessment orders for Assessment Year 2018-19 and 2019-20, passed under Section 143(3) of the Income Tax Act, the petitioner has already filed an appeal before the Commissioner of Income Tax (Appeals), which is still pending consideration. In view of the aforesaid facts, we grant liberty to the petitioner to approach the Commissioner of Income Tax (Appeals) by filing a suitable application seeking stay/interim relief. In case any such an application is filed, the appellate authority will take suitable decision on the same in accordance with law keeping in view the observation made herein above, within a period of one month from the date of production of copy of this order along with application. Till the decision is taken by the Commissioner of Income Tax (Appeals) on the application for stay/interim relief which may be preferred by the petitioner under this order, no coercive action shall be taken against the petitioner. However, the petitioner will cooperate in all the proceedings pending before Income Tax Appellate Tribunal, Commissioner of Income Tax (Exemptions) and Commissioner of Income Tax (Appeals). With the aforesaid observations/direction, the writ petition is finally disposed of. Order Date :- 11.1.2022 Sanjay "