2010 (4) TMI 1218 - HC - Income Tax

High Court remands case for reevaluation after revenue challenges tribunal's decision under Section 12A

The Director of Income-Tax Exemptions Bangalore. Versus St. Ann’s Education Society

The High Court remanded the case to the tribunal for reevaluation after the revenue challenged the tribunal's decision to grant registration under Section ... - Issues involved: Challenge to order on registration under Section 12A of the Act.Issue i: Tribunal's authority to examine registration application after stipulated time.The revenue challenged an order regarding registration under Section 12A of the Act, questioning the tribunal's decision to grant registration based on equity and justice after the application was considered beyond the six-month time limit. The High Court noted the revenue's argument and referred to a previous case involving M/s. Karnataka Golf Association where the matter was remitted back to the tribunal for fresh consideration. The High Court decided to remand the current case to the tribunal for reevaluation, considering the observations made in the previous case.Issue ii: Granting registration without examining merits after limitation period.The revenue also contested the tribunal's decision to allow registration without assessing the merits once the application exceeded the prescribed time limit, emphasizing the absence of a deeming provision under the act for such registration. The High Court, taking into account the previous case involving M/s. Karnataka Golf Association, directed the tribunal to reconsider the matter comprehensively and make a fresh decision, keeping all arguments open for both parties. The High Court deemed it necessary to answer the substantial questions of law raised and instructed the tribunal to issue new orders in light of the observations made.