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2022 (7) TMI 637 - HC - Income TaxExemption u/s 11 - registration granted to it u/s 12AA - delay in the Petitioner making a claim for giving effect to the registration u/s 12AA - HELD THAT - In Dalmia Power Ltd. ( 2019 (12) TMI 991 - SUPREME COURT ) the Supreme Court directed the Department to accept the revised returns filed by the Appellants there for the AY 2016-17 since the delay on account of the schemes of arrangement in amalgamation being sanctioned by the NCLT were not attributable to the Appellant. In the present case too, the Court is of the view that the delay in the Petitioner making a claim for giving effect to the registration u/s 12AA of the Act for the AYs in question cannot be attributed to the Petitioner in the facts and circumstances pointed out hereinbefore. Petitioner to again make an application u/s 119(2)(b) for condoning the delay in filing its revised returns to be considered and processed in accordance with law. The said delay should be taken to have been condoned in the facts and circumstances pointed out hereinbefore. Accordingly, a direction is issued to the Deputy Commissioner of Income Tax (Circle-1), Cuttack (DCIT) to process the revised returns of the Petitioner for the AYs 2003-04, 2004-05 and 2005-06 wherein the Petitioner has asked for the registration under Section 12AA granted to it by the CIT by the order dated 23rd March, 2017 to be given effect to and to consider its claim for exemption thereunder. The assessment order on the revised returns be passed by the DCIT, after hearing the Petitioner, within a period of three months from today and in any event, not later than 10th October, 2022.
Issues:
1. Rejection of petitioner's request to give effect to registration under Section 12AA of the Income Tax Act, 1961. 2. Delay in granting registration for the period from 1st April, 2002 to 31st March, 2005. 3. Grounds for rejection by Joint Commissioner of Income Tax (JCIT). 4. Compliance with the requirements for revised returns. 5. Applicability of Section 119(2)(b) of the Income Tax Act. Analysis: 1. The petitioner, a Port Trust, filed a petition challenging the rejection of its request to give effect to registration under Section 12AA of the Income Tax Act, 1961 for the period from 1st April, 2002 to 31st March, 2005. The petitioner had applied for registration with retrospective effect from the Assessment Year 2003-04 onwards, which was partly allowed by the Income Tax Appellate Tribunal (ITAT). The Commissioner of Income Tax (CIT) later granted registration for the period in question on 23rd March, 2017. 2. The delay in granting registration for the mentioned period was due to the belated application by the petitioner, which was ultimately granted by the CIT after a significant gap. The petitioner made several requests to the CIT for assessment to be made in accordance with the registration granted. However, the JCIT rejected the petitioner's request citing time limitations and non-claiming of benefits in the original returns. 3. The grounds for rejection by the JCIT were found to be baseless by the High Court. The court noted that the petitioner could not have claimed benefits in the original returns before being granted registration under Section 12AA of the Act. The court also highlighted that the petitioner had fulfilled the requirement of filing revised returns, as per the judgment in Goetze (India) Ltd. v. CIT. 4. In light of the Supreme Court's decision in Dalmia Power Ltd. v. Assistant Commissioner of Income Tax, the court directed the Deputy Commissioner of Income Tax to process the petitioner's revised returns for the relevant Assessment Years and consider the claim for exemption under Section 12AA. The court emphasized that the delay in the petitioner's claim could not be attributed to the petitioner. 5. The court, considering the circumstances, did not find it necessary for the petitioner to make an application under Section 119(2)(b) of the Act for condoning the delay in filing revised returns. The court directed the DCIT to pass the assessment order on the revised returns within three months from the judgment date, ensuring the petitioner's claim for exemption is considered.
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