Carmel Educational and Charitable Trust v. The Income-tax Officer, Non Ward 1(4), Erode
[Citation -2020-LL-1005-63]

Citation 2020-LL-1005-63
Appellant Name Carmel Educational and Charitable Trust
Respondent Name The Income-tax Officer, Non Ward 1(4), Erode
Court HIGH COURT OF MADRAS
Relevant Act Income-tax
Date of Order 05/10/2020
Assessment Year 2012-13
Judgment View Judgment
Keyword Tags substantial question of law • statutory provisions • deemed registration • separate entity
Bot Summary: The said appeal was filed before the Tribunal challenging the order passed by the Commissioner of Income Tax-2, Coimbatore for brevity, the CIT(A) dated 21.3.2013 passed under Section 12A(a) of the Act in so far as he has not granted registration under Section 12A(a) of the Act with effect from the date of application namely 11.3.2009. In the first round, the assessee's application was rejected by order dated 28.12.2011. The learned counsel for the assessee would vehemently contend that the Tribunal ought to have considered the vital issue that the registration should have been granted with effect from the date of first application i.e. 11.3.2009. The short issue, which falls for consideration in this appeal, is as to whether the assessee would be entitled to get registration under Section 12A(a) of the Act with effect from the date of application dated 11.3.2009 namely the first application or the CIT was right in granting registration with effect from 01.4.2011 by taking into consideration the second application dated 28.6.2011. The assessee would submit that they went by the advice rendered by the Department and filed the second application dated 28.6.2011 on 30.6.2011. The first application is dated 11.3.2009 in Form 10A in accordance with Rule 17A of the Income Tax Rules, 1962. The second application dated 28.6.2011 is also in Form 10A and on going by the form of application, it is clear that it is a fresh application and it is not a letter in continuation of the earlier application.


TCA.No.770 of 2019 In High Court of Judicature at Madras Dated : 05.10.2020 Coram : Honourable Mr.Justice T.S.SIVAGNANAM and Honourable Mrs.Justice V.BHAVANI SUBBAROYAN Tax Case Appeal No.770 of 2019 M/s.Carmel Educational and Charitable Trust, Erode ...Appellant Vs Income Tax Officer, Non Ward 1(4), Erode. ...Respondent APPEAL under Section 260A of Income Tax Act, 1961 against order dated 22.5.2015 made in ITA.No.785/Mds/2013 on file of Income Tax Appellate Tribunal, Chennai 'C' Bench for assessment year 2012-13. For Appellant: Mr.A.S.Sriraman For Respondent: Mr.J.Narayanasamy, SSC Judgment was delivered by T.S.Sivagnanam,J We have heard Mr.A.S.Sriraman, learned counsel appearing for appellant assessee and Mr.J.Narayanasamy, learned Senior 1/8 http://www.judis.nic.in TCA.No.770 of 2019 Standing Counsel appearing for respondent Revenue. 2. This appeal, filed by assessee under Section 260A of Income Tax Act, 1961 (for short, Act), is directed against order dated 22.5.2015 made in ITA.No.785/Mds/2013 on file of Income Tax Appellate Tribunal, Chennai 'C' Bench (for brevity, Tribunal) for assessment year 2012-13. 3. assessee filed this appeal by raising following substantial questions of law : i. Whether Appellate Tribunal is correct and justified legally in not considering and not deciding issue relating to plea for grant of retrospective registration under Section 12AA of Act for tax exemption even though fact of compliance of statutory provisions prescribed in relation thereto by appellant ? ii. Whether Appellate Tribunal is correct and justified legally in not considering and not deciding issue relating to plea for grant of retrospective registration under Section 12AA of Act for tax exemption overlooking substantial non compliance of their directions contained in order passed in first round by CIT while giving effect to said order ? And 2/8 http://www.judis.nic.in TCA.No.770 of 2019 iii. Whether Appellate Tribunal is correct in law in rejecting plea for grant of retrospective registration for tax exemption impliedly based on report of Assessing Officer which contained issues relevant for assessment purposes while overlooking narrow scope of proceedings initiated for registration under Section 12AA of Act ? 4. By impugned order, appeal filed by assessee was dismissed. said appeal was filed before Tribunal challenging order passed by Commissioner of Income Tax-2, Coimbatore [for brevity, CIT(A)] dated 21.3.2013 passed under Section 12A(a) of Act in so far as he has not granted registration under Section 12A(a) of Act with effect from date of application namely 11.3.2009. 5. Admittedly, assessee has been granted registration under Section 12A(a) of Act with effect from 01.4.2011 i.e for assessment year 2012-13. Thus, appeal before Tribunal was on limited issue that assessee should have been granted registration with effect from 11.3.2009 i.e from date of first application. 3/8 http://www.judis.nic.in TCA.No.770 of 2019 6. present proceedings before Tribunal were second round of litigation initiated by assessee. In first round, assessee's application was rejected by order dated 28.12.2011. Aggrieved by said order dated 28.12.2011 passed by CIT, assessee preferred appeal before Tribunal, which allowed it by order dated 18.9.2012 by faulting procedure adopted by CIT while considering first application. 7. We find from order dated 18.9.2012 passed by Tribunal that there is no finding on merits of assessee's claim, but appeal was allowed on ground of not providing opportunity to assessee before decision was taken. After remand, CIT considered application and granted registration for assessment year 2012-13. 8. It is argument of Mr.A.S.Sriraman, learned counsel appearing for assessee that first application filed by assessee for grant of registration is dated 11.3.2009, that CIT did not dispose of application, but kept it pending, that assessee would have been well within their jurisdiction to claim deemed registration, but they did not do so, rather they abided by direction issued by CIT to file fresh application on 28.6.2011 and that this application was rejected by order dated 28.12.2011. order dated 4/8 http://www.judis.nic.in TCA.No.770 of 2019 28.12.2011 was put to challenge before Tribunal and on remand, CIT granted registration under Section 12A(a) of Act only with effect from 01.4.2011 namely for assessment year 2012-13. 9. learned counsel for assessee would vehemently contend that Tribunal ought to have considered vital issue that registration should have been granted with effect from date of first application i.e. 11.3.2009. 10. Per contra, Mr.J.Narayanasamy, learned Senior Standing Counsel appearing for Revenue has referred to order passed by CIT and more particularly findings in earlier round of litigation, in which, application was rejected. He would submit that on facts, CIT considered matter and granted registration with effect from 01.4.2011, that entire issue was factual and that no substantial question of law arises for consideration in this appeal. 11. short issue, which falls for consideration in this appeal, is as to whether assessee would be entitled to get registration under Section 12A(a) of Act with effect from date of application dated 11.3.2009 namely first application or CIT was right in granting registration with effect from 01.4.2011 by taking into consideration second application dated 28.6.2011. 5/8 http://www.judis.nic.in TCA.No.770 of 2019 12. Admittedly, assessee did not take any steps from 2009 to 2011 to get their first application disposed of. There are varieties of remedies available to assessee and petition under Article 226 of Constitution of India also could have been maintainable. However, assessee would submit that they went by advice rendered by Department and filed second application dated 28.6.2011 on 30.6.2011. 13. Both applications find place in typed set of papers. first application is dated 11.3.2009 in Form 10A in accordance with Rule 17A of Income Tax Rules, 1962. second application dated 28.6.2011 is also in Form 10A and on going by form of application, it is clear that it is fresh application and it is not letter in continuation of earlier application. Thus, assessee is deemed to have abandoned or waived their claim made in first application dated 11.3.2009 owing to fact that they made second application dated 28.6.2011, which is fresh application. 14. Therefore, CIT was well justified in granting registration with effect from 01.4.2011 while noting assessee's contention that M/s.Carmel Educational and Charitable Trust, Kollampalayam Erode is separate entity registered under Tamil Nadu Societies Registration Act, 1975 and current registration was falling under 6/8 http://www.judis.nic.in TCA.No.770 of 2019 financial year 2011-12 and accordingly, he granted registration for assessment year 2012-13. Thus, we find that CIT had taken decision on facts and we do not find any question of law, much less, substantial question of law arising for consideration in this appeal. 15. For all above reasons, above tax case appeal is dismissed. No costs. 05.10.2020 To 1.The Income Tax Appellate Tribunal, Chennai 'C' Bench. 2.The Income Tax Officer, Ward 1(4), Erode. RS 7/8 http://www.judis.nic.in TCA.No.770 of 2019 T.S.SIVAGNANAM,J AND V.BHAVANI SUBBAROYAN,J RS TCA.No.770 of 2019 05.10.2020 8/8 http://www.judis.nic.in Carmel Educational and Charitable Trust v. Income-tax Officer, Non Ward 1(4), Erode
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