Wp(C)/25086/2022 Of Sree Anjaneya Seva Samidhi v. The Income Tax Officer

IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE GOPINATH P. THURSDAY, THE 4 DAY OF AUGUST 2022 / 13TH SRAVANA, 1944 WP(C) NO. 25086 OF 2022 PETITIONER: SREE ANJANEYA SEVA SAMIDHI1, KADALEEVANAM, NEAR ICIC BANK, FORT ROAD, PALAKKAD, PIN - 678501 BY ADV DIVYA RAVINDRAN RESPONDENTS: 1THE INCOME TAX OFFICEREXEMPTION WARD , AYAKAR BAHVAN, SHAKTHAN THAMPURAN NAGAR, MUNCIPAL OFFICE ROAD, THRISSUR, PIN - 6800012CENTRAL PROCESSING CENTER1ST FLOOR, PRESTIGE ALPHA NO. 48/1, HOSUR ROAD, BANGALORE, PIN - 5601003THE PRINCIPAL COMMISSIONER OF INCOME TAXCENTRAL REVENUE BUILDING, I.S PRESS ROAD, KOCHI, PIN – 682018. OTHER PRESENT: JOSE JOSEPH , S/C THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON04.08.2022, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: J U D G M E N T The petitioner is a trust registered under Section 12AA of the Income Tax Act.By virtue of such registration, the income of the trust is exempted from taxation.For the assessment year 2014-2015 the petitioner filed a return of income on 10-02-2015 declaring 'nil' income. The copy of the return e-filed by the petitioner withacknowledgment No.479562050100215 is produced as Ext.P2. The CentralizedProcessing Centre (CPC) of the Income Tax Department, Bangalore issued a noticeto the petitioner stating that the return filed by the petitioner was not accompaniedwith an audit report in Form No.10B of the Income Tax Rules. On receipt of thatcommunication the petitioner uploaded Form No.10B audit report dated 17-02-2016 vide acknowledgment No.9550135311710216 (see Ext.P4) along with a revisedreturn. The revised return was processed creating Ext.P5 demand for payment oftax of Rs.43,20,990/-. It is submitted that the demand was raised only on accountof the fact that according to the CPC, the petitioner had not filed Form No.10B auditreport. On receipt of Ext.P5 the petitioner filed Ext.P6 application for rectificationbefore the CPC which was rejected by Ext.P7 stating that the application can beconsidered only the jurisdictional Income tax officer. Accordingly the petitionerfiled Ext.P8 on 05-02-2019 before the 1[st] respondent, who is jurisdictional Incometax officer. It is submitted that despite filing of Ext.P8 as early as on 05-02-2019 noorders have been passed on the same and in the meanwhile penalty proceedingshave been initiated against the petitioner. The learned counsel for the petitionerstates that a direction may be issued to the 1[st] respondent to consider and passorders on Ext.P8 before a proceedings for penalty are finalized against thepetitioner. 2.The learned Standing Counsel appearing for the Department noobjection to such a direction being issued. 3.Accordingly, this writ petition is disposed of directing the 1[st] respondentto consider and pass orders on Ext.P8 application for rectification after affording anopportunity of hearing to the petitioner within a period of 2 months from the dateof receipt of a certified copy of this judgment. Till orders are passed on Ext.P8, thepenalty proceedings initiated against the petitioner shall not be finalized. Needlessto say any proceedings for recovery of amounts due under Ext.P5 shall also be keptin abeyance, pending consideration of Ext.P8 by the 1[st] respondent. Sd/-GOPINATH P. JUDGE AMG APPENDIX OF WP(C) 25086/2022 PETITIONER EXHIBITS Exhibit P1 THE TRUE COPY OF THE REGISTRATION CERTIFICATE OBTAINED BY THE PETITIONER UNDER SECTION 12AAOBTAINED BY THE PETITIONER UNDER SECTION 12AA Exhibit P1(a)THE TYPED COPY OF THE EXHIBIT-P1Exhibit2TRUE COPY PF THE RETURN E-FILED BY THE PETITIONER FOR AY 2014-15 Exhibit2TRUE COPY PF THE RETURN E-FILED BY THE PETITIONER FOR AY 2014-15 Exhibit3THE TRUE COPY OF THE COMMUNICATION RECEIVED FROM THE CPC, BANGALORE, THE 2ND RESPONDENT HEREIN, DATED 17.11.2015.THE CPC, BANGALORE, THE 2ND RESPONDENT HEREIN, DATED 17.11.2015. Sd/-GOPINATH P. JUDGE AMG APPENDIX OF WP(C) 25086/2022 PETITIONER EXHIBITS Exhibit P1 THE TRUE COPY OF THE REGISTRATION CERTIFICATE OBTAINED BY THE PETITIONER UNDER SECTION 12AAOBTAINED BY THE PETITIONER UNDER SECTION 12AA Exhibit P1(a)THE TYPED COPY OF THE EXHIBIT-P1Exhibit2TRUE COPY PF THE RETURN E-FILED BY THE PETITIONER FOR AY 2014-15 Exhibit2TRUE COPY PF THE RETURN E-FILED BY THE PETITIONER FOR AY 2014-15 Exhibit3THE TRUE COPY OF THE COMMUNICATION RECEIVED FROM THE CPC, BANGALORE, THE 2ND RESPONDENT HEREIN, DATED 17.11.2015.THE CPC, BANGALORE, THE 2ND RESPONDENT HEREIN, DATED 17.11.2015. Exhibit4THE TRUE COPY OF THE REVISED RETURN FILED FOR AY 2014-15 ALONG WITH THE AUDIT REPORT 2014-15 ALONG WITH THE AUDIT REPORT Exhibit5THE TRUE COPY OF THE INTIMATION ORDER ISSUED UNDER SECTION 143(1) FOR AY 2014-15 DATED 16.3.2016 SECTION 143(1) FOR AY 2014-15 DATED 16.3.2016 Exhibit6THE TRUE COPY OF THE RECTIFICATION ACKNOWLEDGMENT FILED BEFORE THE 2ND RESPONDENT DATED 31.5.2016 FILED BEFORE THE 2ND RESPONDENT DATED 31.5.2016 Exhibit7THE TRUE COPY OF THE SCREENSHOT OF REJECTION DATED 16.3.201616.3.2016 Exhibit8THE TRUE COPY OF THE RECTIFICATION APPLICATION FILED BY THE PETITIONER BEFORE THE 1ST RESPONDENT DATED 5.2.2019 FOR AY 2014-15 FILED BY THE PETITIONER BEFORE THE 1ST RESPONDENT DATED 5.2.2019 FOR AY 2014-15 Exhibit9THE TRUE COPY OF THE PENALTY NOTICE DATED 17.1.2020 Exhibit10TRUE COPY OF THE REPLY DATED 27.01.2020