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2021 (8) TMI 976 - HC - Income TaxExemption u/s 10(46) - application in the appropriate format or not? - HELD THAT - As the petitioner had apparently made an application in the appropriate format on 14.05.2020 to the Principal Commissioner of Income Tax, NER at Guwahati, it prima-facie does not appear to us that the petitioner had not made the application in the required procedure as provided in the letter dated 24.06.2013 of the CBDT. But, however, Mr. S Sarma, learned counsel points out that a copy of such application is also required to be forwarded to the Under Secretary (ITA-1) of the CBDT. Without going into any such question, we require the petitioner to file a fresh application claiming exemption u/s 10(46) of the Income Tax Act, 1961 in the given format provided in clause 3 of the letter dated 24.06.2013 of the CBDT and the said application be sent to the Principal Commissioner of Income Tax, NER, Guwahati. A copy thereof be also given to the Under Secretary (ITA- 1), CBDT. The application be made within a period of 15(fifteen) days from today.
Issues:
Claim for exemption under Section 10(46) of the Income Tax Act, 1961. Analysis: The petitioner, Assam Building and other Construction Workers Welfare Board, sought exemption under Section 10(46) of the Income Tax Act, 1961 for certain income derived from cess and bank deposits. Section 10(46) pertains to specific income arising to a body established under a Central, State, or Provincial Act for public benefit, not engaged in commercial activities, and notified by the Central Government. The petitioner forwarded the exemption application to the Principal Chief Commissioner of Income Tax, but the application was not duly considered. The court noted the grievance regarding the non-consideration of the application and decided to address this issue specifically. The respondent, representing the Income Tax Department, presented a communication highlighting the standard procedure for filing applications under Section 10(46) as per a letter from the Central Board of Direct Taxes (CBDT) dated 24.06.2013. The communication emphasized the need for uniformity in filing applications and specified the format and submission requirements. It was argued that the petitioner did not follow the appropriate procedure, leading to the application not being processed. The petitioner's counsel referred to communications demonstrating the submission of the exemption claim in the required format. Despite the respondent's contention that a copy of the application should also be sent to the Under Secretary (ITA-1) of the CBDT, the court found that the petitioner had made the application in the correct format to the Principal Commissioner of Income Tax. The court directed the petitioner to file a fresh application within 15 days in the prescribed format to the Principal Commissioner of Income Tax, with a copy to the Under Secretary (ITA-1) of the CBDT. The Principal Commissioner was instructed to pass the relevant order within one month of receiving the application. Until a decision is made on the application, no coercive action should be taken against the petitioner. However, the interim protection would cease if the fresh application is not submitted within the specified timeframe, thereby disposing of the writ petition with these directives.
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