Commissioner Of Income Tax(Exemption), Kolkata v. Sarlaben Bhansali Charities Trust

OD-45 IA No. GA/1/2018(OLD No. GA/1249/2018)In ITAT/176/2018IN THE HIGH COURT AT CALCUTTASPECIAL JURISDICTION (INCOME TAX)ORIGINAL SIDE COMMISSIONER OF INCOME TAX(EXEMPTION), KOLKATAVERSUSSARLABEN BHANSALI CHARITIES TRUST BEFORE : THE HON’BLE JUSTICE T.S. SIVAGNANAMAndTHE HON’BLE JUSTICE ANANDA KUMAR MUKHERJEEDate : 7[th] January, 2022 Appearance :- Mr. Debasish Chowdhury, Adv.… For AppellantMr. Ananda Sen, Adv.… For Respondent The Court : This appeal by the revenue under Section 260A ofthe Income Tax Act, 1961(the Act for brevity) is directed against theorder dated 30[th] November, 2017 passed by the Income Tax AppellateTribunal, Kolkata “B” Bench, Kolkata (Tribunal) in ITA Nos. 663 &76/Kol/2016 for the assessment year 2010-11. The revenue hasraised the following substantial questions of law for consideration: (a)Whether on the facts and in the circumstances of the case thelearned Income Tax Appellate Tribunal, “B” Bench, Kolkata haserred in law in holding that the action under Section 263 of theIncome Tax Act, 1961 cannot be taken subsequent to cancellationof registration for the year when the cancellation order was notavailable to the Assessing Officer while passing the order underSection 147/143(3) of the Income Tax Act, 1961?learned Income Tax Appellate Tribunal, “B” Bench, Kolkata haserred in law in holding that the action under Section 263 of theIncome Tax Act, 1961 cannot be taken subsequent to cancellationof registration for the year when the cancellation order was notavailable to the Assessing Officer while passing the order underSection 147/143(3) of the Income Tax Act, 1961? (b)Whether on the facts and in the circumstances of the case thelearned Income Tax Appellate Tribunal, “B” Bench, Kolkata haserred in law in holding that the cancellation of registration cannotbe made with effect from April 01, 2009 without considering thefact that in this case registration was granted under Section 12AAof the Income Tax Act, 1961 and not under Section 12A of theIncome Tax Act, 1961?learned Income Tax Appellate Tribunal, “B” Bench, Kolkata haserred in law in holding that the cancellation of registration cannotbe made with effect from April 01, 2009 without considering thefact that in this case registration was granted under Section 12AAof the Income Tax Act, 1961 and not under Section 12A of theIncome Tax Act, 1961? We have heard Mr. Debasish Chowdhury, learned StandingCounsel appearing for the appellant/revenue and Mr. Ananda Sen,learned Counsel appearing for the respondent/assessee. The Tribunalhad allowed the assessee’s case following the decision in the case ofCommissioner of Income Tax(exemption) Vs. Mukesh BhansaliCharities Trust in ITA allowed the assessee’s appeal following thedecision of the Tribunal in the case of Mukesh Bhansali CharitiesTrust Vs. Commissioner of Income Tax(exemption), ITA No. 1250/Kol./2016 dated 9[th] June, 2017 wherein the Tribunal upheldcircular No. 1 of 2011, dated 6[th] April, 2011 issued by the CBDT andheld that Section 12AA(3) is applicable only from the assessment year2011-12. The revenue had filed appeal before this Court in the case ofMukesh Bhansali Charities Trust Vs. Commissioner of IncomeTax(exemption) in ITAT No. 333 of 2017 and by judgment dated 11[th]March, 2019 the appeal filed by the revenue was dismissed. Thus, wefind that the substantial questions of law raised in this appeal arecovered against the revenue. In the result, the appeal filed by revenue is dismissed and thesubstantial questions of law are answered against the revenue. With the dismissal of the appeal, the stay application(IA No.GA/1/2018, Old No.GA/1249/2018) also stands dismissed. (T.S. SIVAGNANAM, J.) (ANANDA KUMAR MUKHERJEE, J.)