Calcutta High Court
The Bengal Chamber Of Commerce & ... vs Dy. Director Of Income Tax (Exemption) - ... on 9 October, 2013
Author: Harish Tandon
Bench: Harish Tandon
ORDER SHEET
W.P. No. 1051 of 2013
IN THE HIGH COURT AT CALCUTTA
Constitutional Writ Jurisdiction
ORIGINAL SIDE
The Bengal Chamber of Commerce & Industry
Versus
Dy. Director of Income Tax (Exemption) - I Kolkata & Ors.
BEFORE:
The Hon'ble Justice HARISH TANDON
Date: 9th October, 2013
Appearance :
Mr. J. P. Khaitan, Sr. Adv.
Mr. Prabir Kr. Bhowmick, Adv.
The Court : The petitioner is claiming itself to be a non-profitable
organization and was availing the benefit of exemption under Section 11 of the
Income Tax Act 1961 until the order passed by the assessing authority for the
assessment year 2010-11.
According to the petitioner the provisions under Section 12A as it
stood at the relevant period of time does not require a registration for the purpose
of exemption under Sections 11 & 12 of the said Act.
The petitioner says that if an application is made before the date
indicated therein it would amount to granting the exemption as a registered
assessee for the purpose of an exemption under Section 11 of the said Act.
Admittedly, on an application, the benefit of exemption is granted by
the authorities until the assessment year 2010-11. Section 12A subsequently
undergone a sea change with effect from 01.04.1997 which requires the
registration to be made for the purpose of exemption under Section 11 of the said
Act. Section 12AA of the said Act contains the procedure for registration for
exemption and sub-section 3 thereof postulates that where a Trust or an
Institution has been granted registration under Clause (b) of Sub-Section (1) or
has obtained registration at any time under Section 12A, as it stood before its
amendment, after the commissioner is satisfied that the activities of such Trust
or an Institution are not genuine or are not being carried out in accordance with
the objects of the Trust or Institution as the case may be, he shall pass an order
in writing canceling the registration of such Trust or Institution.
The petitioner contends that because of the aforesaid provisions, the
authorities cannot suo motu treat the petitioner as non-registrant under Section
12A without passing an order canceling such registration which is otherwise
valid under the un-amended provisions of Section 12A of the said Act.
Admittedly the assessing authority passed an order of assessment
and the matter is carried out before the CIT appeals. Amidst the pendency of an
appeal, the petitioner had filed an application under Section 220 (6) of the said
Act and upon dismissal thereof, the order is assailed in this writ petition.
Although this Court finds that the authorities who have recorded the
reasons and the submissions made by the petitioner as indicated hereinabove,
but since the petitioner has already approached the CIT appeals who is in seisin
of the matter it would sub-serve the justice if the said appeal is disposed of an
priority basis. The Respondent says that he cannot stand in the way if the order
or a direction is passed by this Court for early disposal of an appeal by an appellate authority.
Accordingly, the respondent no. 4 herein is directed to dispose of the appeal as expeditiously as possible and preferably within three weeks from the date of the communication of this order.
Till the time of the said appeal is disposed of, the authorities are restrained from taking any coercive steps for realisation of the amount subject however to the deposit by the petitioner a bank guarantee for a sum of Rs. 4 lakhs of any nationalized bank.
For abundant pre-caution, it is hereby made clear that this Court has no occasion to go into the merit and the authorities shall free to decide the same in accordance with law and any observation made hereinabove is mere tentative and shall not bind the said authorities at the time of final determination.
The writ petition is, thus, disposed of on the basis of above observations. No Costs.
(HARISH TANDON, J) sb-I