2015 (2) TMI 846 - HC - Income Tax

Defective application for registration under section 12A - approval under section 10(23C)(vi) denied - Review petition - whether the observation of the court that the application is withdrawn should be modified or not? - Held that - It is clearly indicated that though an application was filed under section 12A dated November 28, 2007, which was received on November 30, 2007, there were certain defects and deficiencies for which the assessee was called upon to cure the same. The case was also posted for hearing on May 5, 2008. The time limit for disposal of application was on May 30, 2009. In the meantime, the applicant had filed an application under section 10(23C)(vi) before the Commissioner of Income-tax on June 15, 2008. Under such circumstances, the official records indicate that the application under section 12A is withdrawn. When the time limit for considering the said application is already complete and the matter has been considered by this court we do not think that the learned single judge has committed any error of law in dismissing the writ petition filed by the petitioner as it is evident that the stand taken by the petitioner regarding pendency of the application for registration under section 12A is not true and correct. Since such an application is not pending disposal before the authority concerned, the relief sought for could not be granted. - Decided against assessee.

Summary

Issues:
Challenge to registration under section 12A of the Income-tax Act 1961 based on exhibits P5, P11, and P13; Consideration of application in Form No. 10A dated May 30, 2007, produced as exhibit P2; Rejection of application under section 10(23C)(vi) of the Income-tax Act; Dispute regarding withdrawal of application submitted as exhibit P2.

Analysis:
The appellant, an educational trust, filed for registration under section 12A of the Income-tax Act 1961 through exhibit P2 application. Despite rectifying defects, subsequent issues arose. An application under section 10(23C)(vi) was rejected, leading to a fresh application under section 12A being allowed for the assessment year 2010-11 onwards.

The main issue revolves around the financial years starting from 2007-08, concerning the validity of exhibit P2 application. The court noted that previous judgments found the application no longer valid, leading to the dismissal of the appellant's claims.

The appellant argued that the application submitted as exhibit P2 was not withdrawn, contrary to claims, and should have been considered alongside the rejected section 10(23C)(vi) application. Despite previous rulings, the court allowed the appellant to seek remedies for the period before the assessment year 2010-11.

Following a review petition, the court upheld previous decisions, emphasizing that the application under section 12A was not pending. Official records indicated withdrawal due to defects and subsequent actions by the appellant.

Ultimately, the court found no error in the dismissal of the writ petition. However, it clarified that any appeal against the application for exemption under section 10(23A) should be considered independently by the Appellate Tribunal. The writ appeal was consequently dismissed.