IN HIGH COURT OF KERALA AT ERNAKULAM PRESENT HONOURABLE MR. JUSTICE AMIT RAWAL THURSDAY, 20TH DAY OF FEBRUARY 2020 / 1ST PHALGUNA, 1941 WP(C).No.2582 OF 2020(W) PETITIONER: ST.JOSEPHS MONASTERY KOONAMMAAVU,KOONAMMAVU.P.O, KOCHI,PIN-683518,KERALA ,INDIA. REPRESENTED BY ITS AUTHORIZED SIGNATORY, & PRIOR (CHIEF EXECUTIVE) FR.ZACHARIAS PAIKKATTU CMI BY ADV. SRI.DALE P.KURIEN RESPONDENTS: 1 INCOME TAX OFFICER(EXEMPTIONS) SAN JUAN TOWERS,I.S.PRESS ROAD, KOCHI-682018. 2 COMMISSIONER OF INCOME TAX,(EXEMPTIONS), SAN JUAN TOWERS,I.S.PRESS ROAD, KOCHI-682018. 3 CENTRAL BOARD OD DIRECT TAXES, GOVERNMENT OF INDIA, MINISTRY OF FINANCE, NEW DELHI 560 001, REPRESENTED BY ITS SECRETARY. SRI CHRISTOPHER ABRAHAM SC THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 20.02.2020, COURT ON SAME DAY DELIVERED FOLLOWING: W.P.(C)No.2582 OF 2020 -:2:- JUDGMENT (Dated this 20th day of February, 2020) Petitioner in instant case has impugned order dated 21.03.2019 Ext.P6 rejecting review petition referred under Section 264 of Income Tax Act, 1961. It is contended that assessee petitioner is Religious and Charitable institution under name and style M/s.St.Joseph's Monastery, Koonammavu P.O., Ernakulam. For assessment year 2015, e-return was filed through net on 27.02.2017 declaring 'nil' income claiming exemption under Section 11 of Income Tax Act. Assessment was completed under Section 144 of Income Tax Act. Learned counsel appearing on behalf of petitioner submits that though matter reached upto level of ITAT, fact remains that no effective opportunity was given to petitioner to claim exemption under 12A of Income- tax Act. After verification of return, best judgment assessment was passed ex parte adopting income as returned at Rs.1,59,83,844/- for being taxed, rejecting entire expenses. Rs,1,64,27,399/- as per return and even 15% legitimate accumulation under Section 11 were denied. tax liability W.P.(C)No.2582 OF 2020 -:3:- was calculated at Rs.76,89,590/-. 2. pith and substance of impugned order reveals that petitioner failed to respond to notice issued under Section 142(1) of Act. Chartered Accountant of petitioner could not appear in matter. order impugned lacks cogent reasons and review has been rejected merely on ground that petitioner did not respond to notice issued. 3. Per contra, learned counsel for Income-tax Department Sri Christopher Abraham supports impugned orders by urging that petitioner has failed to place on record any material. 4. Having heard learned counsel on both sides and on perusing records, I am of opinion that impugned order Ext.P4 lacks reasons as to how and under what circumstances, petitioner is not entitled to exemption being Religious and Charitable Institution. only ground for rejection of review is that petitioner did not respond to notices issued under Section 142 of Act. For sake of convenience, operative portion of said order is extracted below: I have carefully examined submission of assessee. I W.P.(C)No.2582 OF 2020 -:4:- have also perused report of Assessing Officer. After considering assessee's submissions and going through facts and circumstances of case, it is seen that there was non-compliance to notices issued by Assessing Officer which is accepted by assessee. In this case, assessee was given sufficient opportunity by Assessing Officer to prove its case. I, therefore, decline to interfere with order of Assessing Officer as assessee has given no cogent reason for not responding to Assessing Officer's queries and petition U/s.264 dated 25.01.2018 is thereby not entertained and same is filed. For aforementioned reasons writ petition is bereft of material. Officers vested with obligation to discharge judicial functions are legitimately expected to resort to application of mind in pragmatic and reasonable manner which is conspicuously absent in instant case. For that reason, impugned order Ext.P6 is set aside. matter is remitted to Commissioner of Income-tax (Exemption), Kochi to consider revision petition afresh after affording opportunity of hearing to petitioner. Sd/- AMIT RAWAL JUDGE dsn W.P.(C)No.2582 OF 2020 -:5:- APPENDIX PETITIONER'S EXHIBITS: EXHIBIT P1 TRUE COPY OF CERTIFICATE OF REGISTRATION ISSUED BY COMMISSIONER OF INCOME TAX,KOCHI DATED 8.03.1974. EXHIBIT P2 TRUE COPY OF STATUTORY RETURN OF INCOME DATED 27.02.2017. EXHIBIT P3 TRUE COPY OF NOTICE U/S.143(2)OF ACT DATED 18.09.2017. EXHIBIT P4 TRUE COPY OF ASSESSMENT ORDER DATED 7.12.2017. EXHIBIT P4(A) TRUE COPY OF DEMAND NOTICE DATED 7.12.2017. EXHIBIT P5 TRUE COPY OF REVISION PETITION DATED 23.01.2018 EXHIBIT P6 TRUE COPY OF REVISIONAL ORDER DATED 21.03.2019. EXHIBIT P7. TRUE COPY OF APPELLATE ORDER DATED 15-10- 2019 PASSED BY INCOME TAX APPELLATE TRIBUNAL,COCHIN BENCH. EXHIBIT P8 TRUE COPY OF ASSESSMENT ORDER FOR YEAR 2016-17 DATED 7.11.2018. EXHIBIT P9 TRUE COPY OF RETURN OF INCOME FOR 2017-18 DATED 03.04.2018. EXHIBIT P9(A) TRUE COPY OF RETURN OF INCOME FOR ASST.YEAR 2018-19 DATED 30.10.2018. EXHIBIT P9(B) TRUE COPY OF RETURN OF INCOME FOR ASST.YEAR 2019-20 DATED 01.10.2019. EXHIBIT P10 TRUE COPY OF WEBSITE PAGE ALLOTTED TO PETITIONER FROM INCOME TAX DEPARTMENT FOR UPLOADING DETAILS FOR TAX ASSESSMENT. St. Josephs Monastery v. Income-tax Officer (Exemptions), Kochi / Commissioner of Income-tax, (Exemptions), Kochi / Central Board OD Direct Taxe