Commissioner Of Income Tax (Exemption), Kolkata v. Badu Rural Welfare Society Foundation

OD-1 ORDER SHEETITAT/54/2017IA NO: GA/1/2017(Old No:GA/595/2017)IN THE HIGH COURT AT CALCUTTASpecial Jurisdiction (Income Tax)ORIGINAL SIDE COMMISSIONER OF INCOME TAX (EXEMPTION), KOLKATAVSBADU RURAL WELFARE SOCIETY FOUNDATION BEFORE: The Hon'ble JUSTICE T. S. SIVAGNANAM And The Hon’ble JUSTICE HIRANMAY BHATTACHARYYA Date : 29 November, 2021 Appearance: Mr. Radhamohan Ray, Adv.Mr. S. Lamba, Adv.…For the AppellantMr. Tilak Mitra, Adv.…For the Respondent The Court : This appeal of the revenue filed under Section 260A of theIncome Tax Act (the ‘Act’ in brevity) is directed against the order dated 30[th]September, 2016 passed by the Income Tax Appellate Tribunal, B-Bench, Kolkata(the ‘Tribunal’) in ITA No.94 & 95/Kol/2016. The revenue has raised the following substantial question of law forconsideration : “a)Whether on the facts and in the circumstances of the case theLearned Income Tax Appellate Tribunal, “B” Bench Kolkata erred in law inholding that for granting registration under Section 12AA(1) of the IncomeTax Act, 1961 the powers of Commissioner of Income Tax are limited to “theaspect of examining that whether or not the objects of the trusts arecharitable in nature” only without examining the genuineness of activities, whereas by virtue of the provisions of Section 12AA(1) (a) of the Income TaxAct, 1961, the Commissioner of Income Tax shall satisfy himself about thegenuineness of activities?” We have heard Mr. Radhamohan Ray, learned standing counsel for theappellant/ revenue and Mr. Tilak Mitra, learned counsel for therespondent/assessee. The learned standing counsel appearing for the appellant/revenue hasplaced before us the communication addressed to him from the Income TaxOfficer (Exemptions) Kolkata dated 12[th] November, 2021 stating that this appealhas been filed in an issue of denial of registration under Section 12AA(1) of theAct due to lack of activities on the part of the trustees. Referring to the decisionof the Hon’ble Supreme Court in the case of Ananda Social & Educational TrustVs. Commissioner of Income Tax (2020) 114 Taxmann.com 693 (SC), theDepartment seeks to withdraw this appeal. The said submission made by thelearned standing counsel based on the communication dated 12[th] November,2021 is placed on record and the appeal stands dismissed. With the dismissal of the appeal, the stay application also standsdismissed. (T. S. SIVAGNANAM, J.) (HIRANMAY BHATTACHARYYA, J.)