Commissioner of Income Tax (Exemptions), Jaipur v. Shree Jain Samiti - 2019-LL-0819-110

Citation	2019-LL-0819-110
Appellant Name	Commissioner of Income Tax (Exemptions), Jaipur
Respondent Name	Shree Jain Samiti
Court	HIGH COURT OF RAJASTHAN
Relevant Act	Income-tax
Date of Order	19/08/2019
Judgment	View Judgment
Keyword Tags	deeming fiction • application for exemption
Bot Summary:	The assessee had sought exemption under that provision by an application made on 09.03.2016. The assessee s appeal resulted in a remand - by an order dated 10.02.2017. Thereafter, the Commissioner did not decide the remand but sought further documents and ultimately rejected that application under Section 12AA(2). The assessee s appeal to the ITAT succeeded and it was held that Section 12AA(2), applied to the circumstances of the case. Learned counsel made two-fold arguments; that the deeming fiction would not apply per se to remanded proceedings and that in the facts of this case, the assessee did not deserve application of the deeming fiction since it never produced the documents sought. The facts on record reveal that after the order remanding the application, the Commissioner-I wrote to the assessee seeking additional documents on 14.08.2017; further documents were sought on 10.10.2017 under a hearing given on 10.12.2017. In these circumstances, the question urged, i.e., whether the period contemplates remanded proceedings also does not arise.

HIGH COURT OF JUDICATURE FOR RAJASTHAN BENCH AT JAIPUR D.B. Income Tax Appeal No. 47/2019 Commissioner Of Income Tax (Exemptions), 3Rd Floor, Kailash Heights, Lal Kothi, Tonk Road, Jaipur Appellant Versus Shree Jain Samiti, Plot No. 2, Behind Maheshwari Bhawan, Jhalawar Road, Kota Respondent For Appellant(s) : Mr. Sameer Jain with Mr. Daksh Pareek For Respondent(s) : HON'BLE CHIEF JUSTICE HON'BLE MR. JUSTICE INDERJEET SINGH Judgment 19/08/2019 1. Revenue s appeal urges substantial question of law with respect to interpretation of Section 12AA(2) of Income Tax Act. assessee had sought exemption under that provision by application made on 09.03.2016. In due compliance with law, that application was decided on 15.09.2016, declining request. assessee s appeal resulted in remand - by order dated 10.02.2017. Thereafter, Commissioner did not decide remand but sought further documents and ultimately rejected that application under Section 12AA(2) (for want of those materials). assessee s appeal to ITAT succeeded and it was held that Section 12AA(2) (by which application is decided by deeming fiction), applied to circumstances of case. 2. Learned counsel made two-fold arguments; (i) that deeming fiction would not apply per se to remanded proceedings and (ii) that in facts of this case, assessee did not deserve application of deeming fiction since it never produced documents sought. (2 of 2) [ITA-47/2019] 3. This court is of opinion that substantial question of law urged by Revenue does not arise in this case. facts on record reveal that after order remanding application, Commissioner-I wrote to assessee seeking additional documents on 14.08.2017; further documents were sought on 10.10.2017 under hearing given on 10.12.2017. Clearly even if reasonable period is accepted for receipt of notice (after remand dated 10.02.2019), Commissioner acted beyond basic period stipulated under Section 12(2). In these circumstances, question urged, i.e., whether period contemplates remanded proceedings also does not arise. This question however is kept open. 4. For foregoing reasons, this court is of opinion that no interference is called for. 5. appeal is dismissed. (INDERJEET SINGH),J (S. RAVINDRA BHAT),CJ ANIL KUMAR GOYAL /Jyoti/166 Commissioner of Income Tax (Exemptions), Jaipur v. Shree Jain Samiti

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