Case Law Details
Sai Baba Sewa Mandal Vs JCIT (Exemptions) (Bombay High Court)
In the case of Sai Baba Sewa Mandal vs. JCIT (Exemptions), the Bombay High Court heard arguments from both parties, represented by Mr. Hirani for the petitioner and Mr. Parchure for the respondents.
The petitioner sought a direction against the respondents to issue a copy of the certificate evidencing registration under Section 12A of the Income Tax Act, 1961 (the Act). The petitioner, a Charitable Trust registered under the Bombay Public Trust Act, claimed to have been registered under Section 12A of the Act since 1973-74, resulting in exemption from the provisions of Sections 11 and 12 of the Act.
The petitioner asserted that due to the loss of the certificate, they had made repeated requests to the respondents for a certified copy, but received no response. The respondents, in a communication dated 05.04.2023, stated that the certificate of exemption could not be found in their office records despite their best efforts.
Mr. Hirani, counsel for the petitioner, also referred to an exemption order dated 14.11.1973, granting exemption under Section 80G of the Act until 31.03.1974, and an assessment order dated 11.12.2017, granting benefits to the petitioner/Trust based on the exemption.
Mr. Parchure, representing the respondents, did not dispute that if a Trust is granted exemption under Section 80G, it implies pre-existing exemption under Section 12A. He also did not contest the assessment order dated 11.12.2017.
Given these circumstances, it was evident that the petitioner/Trust was indeed granted exemption under Section 12A of the Act. The assessment order explicitly mentioned the registration under Section 12A(a) and the issuance of a certificate in that regard.
Consequently, the court ruled in favor of the petitioner/Trust, directing the respondents to provide a copy of the certificate of exemption under Section 12A of the Act and to accord all benefits arising from it. The order clarified that it pertained only to benefits under Section 12A and not otherwise.
The petition was thus allowed, and no costs were imposed. Any pending applications were disposed of accordingly.
FULL TEXT OF THE JUDGMENT/ORDER OF BOMBAY HIGH COURT
Heard Mr. Hirani, learned counsel for the petitioner and Mr. Parchure, learned counsel for the respondents.
2. The petition claims a direction against the respondents, for issuance of a co80gpy of the certificate evidencing registration under Section 12A of the Income Tax Act, 1961 (for short the “Act of 1961”. It is contended, that the petitioner which is Charitable Trust registered under the Bombay Public Trust Act, was registered under Section 12A of the Act of 1961 in the year 1973-74 itself, as a result of which, it was granted exemption from the applicability of the provisions of Sections 11 and 12 of the Act of 1961.
3. It is contended, that due to the loss of said certificate an application was made to the respondents for grant of a certified copy of certificate on 03.03.2023 (page 67) alongwith an affidavit, which request was reiterated by the communication dated 06.03.2023 (page 71), which has not elicited any response till the date of filing of the petition. On 05.04.2023, a communication has been issued by the respondents stating that the certificate of exemption could not be found in the office records, with the best possible efforts on account of which the copy of the certificate was incapable of being issued.
4. Mr. Hirani, learned counsel for the petitioner, also relies upon the exemption order dated 14.11.1973 (page 52) which granted exemption to the petitioner/Trust under Section 80G of the Act of 1961 for a period upto 31.03.1974 and also upon the assessment order dated 11.12.2017 (page 42) for the A.Y. 2015-16 which grants benefit to the petitioner/Trust on account of the exemption. It is therefore contended, that since the petitioner/Trust stands exempted under Section 12A of the Act of 1961, the consequent actions which have been taken without considering that position, would all be non-est and the petitioner/Trust is entitled to a certificate of exemption and the benefit accrued on its count.
5. Mr. Parchure, learned counsel for the respondents, does not dispute that in case a Trust is granted an exemption under Section 80G of the Act of 1961, that necessarily mandates the preexistence of an exemption being granted to the Trust under Section 12A of the Act of 1961. He also does not dispute the assessment order dated 11.12.2017 (page 42).
6. It would therefore be apparent, that the fact that the petitioner/Trust was granted an exemption under Section 12A of the Act of 1961 cannot be disputed by the respondents. In fact, the assessment order dated 11.12.2017 (page 42), in para 3 specifically records the registration of the Trust under Section 12A(a) of the Act of 1961 and a certificate in that regard being issued vide F.No. 12A/302/73-74.
7. This being the position, the petitioner/Trust would be entitled to a copy of the certificate indicating its registration under Section 12A of the Act of 1961 and all benefits arising therefrom. We, therefore, allow the petition by directing the respondents to supply a copy of a certificate of exemption under Section 12A of the Act of 1961 to the petitioner/Trust and to also accord all benefits arising therefrom to it.
8. It is made clear, that this order is only in respect of the benefits under Section 12A of the Act of 1961 and not otherwise.
9. The Petition is accordingly allowed in the above terms. No costs.
10. Pending application/s, if any, shall stand disposed of accordingly.
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