Wp(C)/23945/2022 Of The Marthoma Church Educational Society v. The Assistant Commissioner Of Income Tax

IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE GOPINATH P. TUESDAY, THE 23 DAY OF AUGUST 2022 / 1ST BHADRA, 1944 WP(C) NO. 23945 OF 2022 PETITIONER: THE MARTHOMA CHURCH EDUCATIONAL SOCIETY, MUKKOLAKKAL, THIRUVANANTHAPURAM - 695043, KERALA REPRESENTED BY ITS SECRETARY MR.MATHEW GEORGE. BY ADVS.ANIL D. NAIRTELMA RAJUEDATHARA VINEETA KRISHNANP.K.BIJU RESPONDENTS: 1THE ASSISTANT COMMISSIONER OF INCOME TAX,AAYAKAR BHAVAN, KOWDIAR, THIRUVANANTHAPURAM – 695 003. 2THE INCOME TAX OFFICER,TDS CIRCLE, THIRUVANANTHAPURAM – 695 003. BY SRI.CHRISTOPHER ABRAHAM THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON23.08.2022, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: JUDGMENT The petitioner is a society registered under theRegistration, Travancore-Cochin, Literary, Scientific andCharitable Societies Act, 1955. It has been issued with Ext.P1certificate of registration under Section 12A of the Income TaxAct. For the assessment years 2015-16 and 2016-17, certaindemands were raised on the petitioner. It is stated that thestatutory appeals filed in respect of the assessment years2015-16 and 2016-17 are pending consideration before theappellate authority and all demands are stayed on thepetitioner depositing 20% of the demand raised for each ofthose years. The petitioner applied for the issuance of acertificate under Section 197 of the Income Tax Act to enablethe petitioner to receive amounts without deduction of tax atsource. That request of the petitioner has been denied byExt.P3 on the ground that there are pending demands againstthe petitioner in respect of the assessment years 2015-16 and2016-17. 2.The learned counsel appearing for the petitionerpoints out that since the demands have been stayed on the petitioner remitting 20% of the demands for those years, thecertificate requested for by the petitioner (for the year 2022-23) could not have been rejected on the ground that there werepending demands. 3.Heard the learned counsel appearing for therespondent Department also. 4.The learned counsel for the respondents very fairlystates that since the demands in respect of the years 2015-16and 2016-17 have been stayed and presently there are nodemands against the petitioner, Ext.P3 order by which therequest of the petitioner has been turned down (on the groundthat there are pending demands for years 2015-16 and 2016-17) cannot be sustained. It is also pointed out that for the years2020-21 and 2021-22 certificates have been issued underSection 197 of the Income Tax Act. 5.Having regard to the facts and circumstances of thecase and having heard counsel as above, this writ petition isallowed and Ext.P3 order is set aside. The 2[nd] respondent willconsider the issuance of the certificate under Section 197 of theIncome Tax Act after taking note of the fact that the demands for the assessment years 2015-16 and 2016-17 are stayed andpresently there is no demand in respect of those years againstthe petitioner. The needful shall be done within a period of twomonths from the date of receipt of a certified copy of thisjudgment. The writ petition will stand disposed of as above. Sd/-GOPINATH P.JUDGE DK PETITIONER EXHIBITS Exhibit P1TRUE COPY OF THE REGISTRATION CERTIFICATE DATED 7.05.1999 Exhibit P2 TRUE COPY OF THE APPLICATION DATED 25.04.2022 FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT Exhibit P3 Exhibit P4 TRUE COPY OF THE ORDER DATED 23.05.2022TRUE COPY OF THE JUDGMENT DATED 11.04.2018 WP(C) NO.12918 OF 2018 Exhibit P5 TRUE COPY OF THE ORDER UNDER SEC 197 DATED 26.08.2020 FOR THE ASSESSMENT YEAR 2020-21 Exhibit P6 TRUE COPY OF THE ORDER UNDER SECTION 197 DATED 29.06.2021 FOR THE ASSESSMENTYEAR 2021-22