Madras High Court
Commissioner Of Income Tax vs M/S.Shine Educational And Social ... on 3 August, 2021
T.C.A.No.1181 of 2015
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED : 03.08.2021
CORAM
The Honourable Mr.Justice T.S.SIVAGNANAM
and
The Honourable Mr.Justice SATHI KUMAR SUKUMARA KURUP
T.C.A.No.1181 of 2015
Commissioner of Income Tax,
Trichy. .. Appellant
-vs-
M/s.Shine Educational and Social Welfare Trust,
Aadhavan Arts and Science College Campus,
Alanthur, Manaparai-621 307. .. Respondent
Appeal under Section 260A of the Income Tax Act, 1961 against the
order dated 27.02.2015 made in I.T.A.No.2778/Mds/2014 on the file of the
Income Tax Appellate Tribunal 'A' Bench, Chennai.
For Appellant : Mr.J.Narayanasamy
For Respondent : Mr.Ashok Pathy,
for M/s.Pass Associates
******
Page 1 of 5
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T.C.A.No.1181 of 2015
JUDGMENT
(Delivered by T.S.Sivagnanam, J.)
This appeal, by the appellant/Revenue, filed under Section 260A of
the Income Tax Act, 1961 (hereinafter referred to as “the Act”), is directed
against the order dated 27.02.2015 made in I.T.A.No.2778/Mds/2014 on the
file of the Income Tax Appellate Tribunal 'A' Bench, Chennai (for brevity,
“the Tribunal”).
2.The appeal was admitted on 05.01.2016, on the following
substantial questions of law:-
“1. Whether, on the facts and in the circumstances
of the case, the Tribunal was right in holding that the
registration granted under Section 12AA cannot be
withdrawn/cancelled on the ground that the assessee had
not filed the return of income?
2. Whether, on the facts and in the circumstances
of the case, the Tribunal was right in holding that the
registration under section 12AA cannot be cancelled on
the ground of non-genuineness when the assessee had
not filed the return of income for four years and had not
intimated the address for communication?”
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T.C.A.No.1181 of 2015
3.Heard Mr.J.Narayanasamy, learned Senior Standing Counsel for the
appellant/Revenue and Mr.Ashok Pathy, learned counsel, for M/s.Pass
Associates, for the respondent.
4.The Tribunal has held in favour of the assessee on the sole ground
that non-filing of the return cannot be a ground for cancellation of the
registration under Section 12AA of the Act. However, we find that before
the Commissioner of Income Tax-I, Tiruchirappalli, (for brevity, “the CIT”)
the assessee did not appear, in spite of several notices calling upon them to
produce the copies of the return of income for the four previous years.
Therefore, in our view, the Tribunal should have first tested the conduct of
the assessee and thereafter, the bonafides and thereafter, the questions of
law. Since such an exercise has not been done, we are of the view that the
matter should be re-agitated before the CIT.
5.Accordingly, the order dated 27.02.2015, passed by the Tribunal is
set aside and the matter is remanded to the Commissioner of Income Tax-I,
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T.C.A.No.1181 of 2015
No.44, Williams Road, Cantonment, Tiruchirappali, for fresh consideration.
The Commissioner shall issue notice to the respondent-assessee, hear them
in detail and pass fresh orders on merits in accordance with law
uninfluenced by any other observations made in the order passed by the
Tribunal, impugned before us, nor the reasons assigned by the
Commissioner for cancellation of the registration. It is needles to state that
the decision should be a fresh decision on merits and in accordance with
law. Consequently, the substantial questions of law are left open and the
appeal stands disposed of. No costs.
(T.S.S., J.) (S.S.K., J.)
03.08.2021
Index: Yes/ No
Speaking Order : Yes/ No
abr
To
The Income Tax Appellate Tribunal 'A' Bench, Chennai.
https://www.mhc.tn.gov.in/judis/
T.C.A.No.1181 of 2015
T.S.Sivagnanam, J.
and
Sathi Kumar Sukumara Kurup, J.
(abr)
T.C.A.No.1181 of 2015
03.08.2021
https://www.mhc.tn.gov.in/judis/
