Tca/1181/2015 Of Commissioner Of Income Tax v. M/S Shine Educational And

IN THE HIGH COURT OF JUDICATURE AT MADRAS CORAM The Honourable Mr.Justice T.S.SIVAGNANAMandThe Honourable Mr.Justice SATHI KUMAR SUKUMARA KURUP T.C.A.No.1181 of 2015 Commissioner of Income Tax,Trichy... Appellant M/s.Shine Educational and Social Welfare Trust,Aadhavan Arts and Science College Campus,Alanthur, Manaparai-621 307... RespondentAppeal under Section 260A of the Income Tax Act, 1961againsttheorderdated27.02.2015madeinI.T.A.No.2778/Mds/2014 on the file of the Income Tax AppellateTribunal 'A' Bench, Chennai. Against the Proceedings of the Commissioner of Income Tax-I, Tiruchirapalli, dated 24.09.2014 in C.No.6162E/CIT-I/TRY/2014-15. For Appellant:Mr.J.NarayanasamyFor Respondent :Mr.Ashok Pathy,for M/s.Pass Associates JUDGMENT (Delivered by T.S.Sivagnanam, J.) This appeal, by the appellant/Revenue, filed under Section260A of the Income Tax Act, 1961 (hereinafter referred to as“the Act”), is directed against the order dated 27.02.2015 madein I.T.A.No.2778/Mds/2014 on the file of the Income TaxAppellate Tribunal 'A' Bench, Chennai (for brevity, “theTribunal”). 2.The appeal was admitted on 05.01.2016, on the followingsubstantial questions of law:- https://hcservices.ecourts.gov.in/hcservices/ “1. Whether, on the facts and in thecircumstances of the case, the Tribunal was rightin holding that the registration granted underSection 12AA cannot be withdrawn/cancelled on theground that the assessee had not filed the returnof income? 2. Whether, on the facts and in thecircumstances of the case, the Tribunal was rightin holding that the registration under section12AA cannot be cancelled on the ground of non-genuineness when the assessee had not filed thereturn of income for four years and had notintimated the address for communication?” 3.Heard Mr.J.Narayanasamy, learned Senior Standing Counselfor the appellant/Revenue and Mr.Ashok Pathy, learned counsel,for M/s.Pass Associates, for the respondent. 4.The Tribunal has held in favour of the assessee on thesole ground that non-filing of the return cannot be a ground forcancellation of the registration under Section 12AA of the Act.However, we find that before the Commissioner of Income Tax-I,Tiruchirappalli, (for brevity, “the CIT”) the assessee did notappear, in spite of several notices calling upon them to producethe copies of the return of income for the four previous years.Therefore, in our view, the Tribunal should have first testedthe conduct of the assessee and thereafter, the bonafides andthereafter, the questions of law. Since such an exercise hasnot been done, we are of the view that the matter should be re-agitated before the CIT. 5.Accordingly, the order dated 27.02.2015, passed by theTribunal is set aside and the matter is remanded to theCommissioner of Income Tax-I, No.44, Williams Road, Cantonment,Tiruchirappali, for fresh consideration. The Commissioner shallissue notice to the respondent-assessee, hear them in detail andpass fresh orders on merits in accordance with law uninfluencedby any other observations made in the order passed by theTribunal, impugned before us, nor the reasons assigned by theCommissioner for cancellation of the registration. It isneedles to state that the decision should be a fresh decision onmerits and in accordance with law. Consequently, thesubstantial questions of law are left open and the appeal standsdisposed of. No costs. Sd/- Assistant Registrar(CS VI) //True Copy// Sub Assistant Registrar abr To 1.The Income Tax Appellate Tribunal 'A' Bench, Chennai. Chennai. 2.The Commissioner of Income Tax-I, Tiruchirapalli. Tiruchirapalli. T.C.A.No.1181 of 2015 PA (CO)PR (26/08/2021)