2020 (8) TMI 903 - HC - Income Tax

Specified income u/s 10(46) - petitioner states that the petitioner has made an application as far back as 07th February, 2014 for Notification of its income under Section 10(46) of the Act, however no decision in this regard has been taken by the respondent No. 2. - HELD THAT - As in the case of a similarly placed authority i.e. Greater Noida Industrial Development Authority vs. Union of India and Others, this Court 2018 (3) TMI 227 - DELHI HIGH COURT has held that the activities of Greater Noida Authority are not commercial activity within the meaning of Clause (b) to Section 10(46) of the Act. He states that an appeal filed by the Revenue against the said order has been dismissed by the Supreme Court. Also pointed out that vide Notification dated 23rd June, 2020 the respondent has notified Greater Noida Industrial Development Authority under Section 10(46) of Act. Since the petitioner s representations dated 07th February, 2014, 19 th June, 2018 and 6th January, 2020 have not been decided till date, we dispose of the present writ petition and pending application by directing the respondent No. 2 to decide the petitioner s applications seeking exemption under Section 10(46) of Act within twelve weeks in accordance with law.

Summary

Issues:
1. Urgency expressed for listing the petition.
2. Direction sought to notify petitioner's income under Section 10(46) of the Income Tax Act, 1961.
3. Delay in decision-making by respondent No. 2.
4. Comparison with a similar case involving Greater Noida Industrial Development Authority.
5. Notification issued for Greater Noida Industrial Development Authority under Section 10(46) of the Act.
6. Disposal of the writ petition and pending application with a directive for decision within twelve weeks.

The High Court of Delhi, comprising Hon'ble Mr. Justice Manmohan and Hon'ble Mr. Justice Sanjeev Narula, addressed a petition expressing urgency for listing, heard via video conferencing. The petition sought a direction for respondent No. 2 to notify the petitioner's income under Section 10(46) of the Income Tax Act, 1961. The petitioner had applied for income notification back in 2014, with no decision from respondent No. 2. Citing a previous case involving Greater Noida Authority, it was highlighted that the activities were not deemed commercial under Section 10(46). The court noted the notification of Greater Noida Industrial Development Authority under Section 10(46) but emphasized the pending decisions on the petitioner's applications since 2014. Consequently, the court directed respondent No. 2 to decide on the petitioner's exemption applications within twelve weeks, aligning with the law. The order was to be uploaded on the website immediately, with a copy sent to the counsel via email, leading to the disposal of the writ petition and pending application.

This judgment underscores the importance of timely decision-making by authorities concerning income notifications under specific sections of the Income Tax Act. It also highlights the significance of legal precedents in similar cases and the court's role in ensuring fair and just outcomes. The directive for a prompt decision within a specified timeframe demonstrates the court's commitment to upholding the rule of law and providing relief to petitioners facing delays in administrative processes. The court's emphasis on transparency, by ordering the immediate uploading of the order on the website and sending copies to the concerned parties, reflects a commitment to accountability and accessibility in legal proceedings. Overall, the judgment showcases the judiciary's role in safeguarding the rights of individuals and entities seeking redressal through legal channels.