Dismissed

Messrs. Social Action for Empowerment and Development v. Commissioner of Income Tax

Kerala HC10 Jun 2016ITA/155/2014

Case brief

AI extract

What is this about?

The High Court of Kerala dismissed appeals against Income Tax Appellate Tribunal orders. Registration under Section 12AA granted in 2016 applies only to AY 2008-09, not prior years, and the Tribunal was not guilty of illegality in proceeding given the statutory timeline. Appeals dismissed.

What did the court decide?

The appellants' appeals were dismissed; the impugned orders of the Income Tax Appellate Tribunal were upheld.

Messrs. Social Action for Empowerment and Development Vs… — Income Tax | Kerala HC (2016)

¶1

IN THE HIGH COURT OF KERALA AT ERNAKULAM

¶2

PRESENT:

¶3

THE HONOURABLE MR.JUSTICE ANTONY DOMINIC & THE HONOURABLE MR. JUSTICE DAMA SESHADRI NAIDU

¶4

FRIDAY, THE 10TH DAY OF JUNE 2016/20TH JYAISHTA, 1938

¶5

I.T.A.No.155 of 2014

¶6

AGAINST THE ORDER IN I.T.A.No.49/2012 of I.T.A.TRIBUNAL, COCHIN BENCH, DATED 27.9.2013

¶7

APPELLANTS/PETITIONER:

¶8

M/S SOCIAL ACTION FOR EMPOWERMENT AND DEVELOPMENT OF MINORITIES, P.B.NO.830, ROSY APARTMENTS, NEAR SPAN HOTEL, JAIL ROAD, PUTHIYARA P.O., KOZHIKODE-673 004. REPRESENTED BY ITS PRESIDENT, DOCTOR KUNH AHAMMED KUTTY.

¶9

BY ADVS.SRI.V.L.SHENOY

¶10

SRI.L.JAYAWANTH

¶11

RESPONDENTS:

¶12

COMMISSIONER OF INCOME TAX, CALICUT, OFFICE OF THE COMMISSIONER OF INCOME TAX, AAAYAKAR BHAWAN, NORTH BLOCK, KOZHIKODE-673 001.

¶13

R BY SRI.JOSE JOSEPH, SC FOR INCOME TAX

¶14

THIS INCOME TAX APPEAL HAVING COME UP FOR ADMISSION ON 10-06-2016, ALONG WITH I.T.A.NO.169/2014, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

¶15

I.T.A.No.155 of 2014

¶16

APPENDIX

¶17

PETITIONER'S ANNEXURE:

¶18

ANNEXURE A1: COPY OF ASSESSMENT ORDER DATED 30.12.2010 PASSED BY INCOME TAX OFFICER WARD 1(2), KOZHIKODE.

¶19

ANNEXURE A2: COPY OF THE ORDER DATED 18.11.2011 OF THE COMMISSIONER OF INCOME TAX (APPEALS) I, KOZHIKODE.

¶20

ANNEXURE A3: LIST OF DONORS TOGETHER WITH THEIR NAME AND ADDRESS FOR ASSESSMENT YEAR 2006-2007.

¶21

ANNEXURE A4: CERTIFIED COPY OF THE ORDER DATED 27-9-2013 OF INCOME TAX APPELLATE TRIBUNAL, COCHIN BENCH, COCHIN.

¶22

ANNEXURE A5: COPY OF JUDGMENT OF HON'BLE HIGH COURT IN W.P. (C)27681/13 DATED 11.11.2013.

¶23

ANNEXURE A6: COPY OF THE ORDER REFUSING TO GRANT REGISTRATION UNDER SECTION 12A OF IT ACT, 1961 BY CIT, CALICUT DATED 8.1.2014.

¶24

ANNEXURE A7: COPY OF THE APPEAL PREFERRED BEFORE THE INCOME TAX APPELLATE TRIBUNAL, COCHIN DATED 31.1.2014.

¶25

ANNEXURE A8: TRUE COPY OF ORDER DATED 8.2.2016 IN CIT (E)/ CHN/12A/G.E.NO.03/ITAT/14-15 PASSED BY COMMISSIONER OF INCOME TAX (EXEMPTIONS) KOCHI.

¶26

// TRUE COPY //

¶27

P.A. TO JUDGE

¶28

ANTONY DOMINIC & DAMA SESHADRI NAIDU, JJ.

¶29

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - I.T.A.No.155 & 169 of 2014

¶30

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Dated this the 10^th day of June, 2016

¶31

JUDGMENT

¶32

Antony Dominic, J.

¶33

The assessee has filed these appeals calling in question the orders passed by the Income Tax Appellate Tribunal in I.T.A.Nos.49/12 and 50/12 concerning the assessment years 2006-

¶34

2007 and 2007-2008.

¶35

Reading of the order passed by the Appellate Tribunal would show that the primary reason for deciding the claim of the assessee for exemption from assessment of tax on donation receipts and loan receipts was on the basis that the assessee did not have registration under Section 12AA of the Income Tax Act.

¶36

In these appeals, the main contention raised by the counsel for the appellant was that the assessee had applied for registration

¶37

and that on rejection of its application for registration, they had appealed to the Tribunal and the Tribunal had remitted the matter

¶38

I.T.A.No.155 & 169 of 2014

¶39

: 2 :

¶40

to the Commissioner for fresh consideration. According to the assessee, since the matter was pending before the Commissioner, the Tribunal should not have disposed of the matter in the manner as it have done now.

¶41

During the pendency of these appeals, the Commissioner has passed an order, dated 8.2.2016, granting registration to the assessee under Section 12AA of the Act. Now relying on the said order, counsel contends that the matter needs to be remitted back to the Tribunal for fresh consideration.

¶42

We heard the counsel for the appellant and the learned Standing Counsel appearing for the Revenue.

¶43

It is true that by order dated 8.2.2016, registration under Section 12AA of the Act has been granted to the assessee. A copy of the order dated 8.2.2016 has been placed on record as Annexure A8. Reading of Annexure A8 disclose that the registration granted

¶44

I.T.A.No.155 & 169 of 2014

¶45

: 3 :

¶46

to the assessee will take effect only from the assessment year 2008-

¶47

2009 and, therefore, the said order cannot be relied on to resist the orders impugned in these appeals, which are passed for the assessment years 2006-2007 and 2007-2008.

¶48

The counsel for the appellant contended that still the issue whether the order in question has retrospective effect or not is a matter to be considered by the Tribunal. This contention cannot be accepted in the light of Sub Section (2) to Section 12A of the Income Tax Act, 1961 which provide that where an application has been made on or after the 1^st June 2007, the provisions of Sections 11 and 12 of the Act shall apply in relation to the Income of such trust or institution from the assessment year immediately following the financial year in which such application is made. This, therefore, shows that the application for registration under Section 12AA having been made by the assessee only in February

¶49

I.T.A.No.155 & 169 of 2014

¶50

: 4 :

¶51

2009, the benefit of the order can enure to the assessee only for the assessment year 2008-2009. Therefore, the order cannot come to

¶52

the rescue of the assessee for the assessment years 2006-2007 and 2007-2008.

¶53

In such circumstances, we are unable to find any illegality in the order passed by the Tribunal. Appeals fail and are accordingly

¶54

dismissed.

¶55

Sd/- ANTONY DOMINIC JUDGE

¶56

Sd/- DAMA SESHADRI NAIDU JUDGE

¶57

jes

Messrs. Social Action for Empowerment and Development v. Commissioner of Income Tax

Case brief

What is this about?

What did the court decide?

Messrs. Social Action for Empowerment and Development v. Commissioner of Income Tax

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

Parties & counsel

Coram

Case details

Similar cases

The Commissioner of Income Tax, Trichur Vs M/S.Kallada Wine, Thrissur

K.Sameer Vs State of Kerala

V.P.Prabhakaran Kartha Vs Kerala State Electricity Board

Commissioner of Income Tax,Trivandrum Vs M/S.Manorajyam Publications Pvt.Ltd.,Ktm

Commissioner of Income Tax,Kottayam Vs M/S.Malayala Manorama Co.Ltd.,Kottayam

M/S. Kizhakkevila Agencies Vs Commercial Tax Officer