By TIOL News Service

NEW DELHI, AUG 30, 2018: THE ISSUE AT HAND BEFORE THE BENCH IS - Whether the Revenue can be charged with making false & misleading statement where it claims during first listing that a matter similar to the one at hand is pending disposal before the Apex Court, when in fact such matter had already been disposed of several years back. YES is the verdict.

The bench also expressed its shock at such blatant gall displayed by the Revenue and held that such casual approach, coupled with a massive 596-day delay in filing the present writ, warranted imposition of costs to the tune of Rs 10 lakhs.

Facts of the case

The assessee, the Hapur Pilkhuwa Development Authority (HPDA) is a body constituted under UP Urban Planning and Development Act, 1973. During the relevant AY, it applied for granting registration u/s 12AA of the Act by submitting an application in Form 10A u/r 17A of Income Tax Rules, 1962. However, the CIT held that the assessee was not an institution working for charitable purposes, as it was not registered under either the Indian Trusts Act 1882 or the Societies Registration Act 1860. The CIT also noted that the assessee sold its land at commercial rates & did not follow commercial accounting principles. Hence the CIT held that the assessee's activities were not charitable. Hence the CIT denied registration u/s 12AA to the assessee. On appeal, the Tribunal allowed such registration by following its decision in an earlier case. Later, the High Court also held that the registration under the Indian Trusts Act 1882 or the Societies Registration Act 1860 is not mandatory for an agency to claim registration u/s 12A or 12AA where such body is engaged in acitivities in advancement of general public utility.

In writ, the Apex Court was of the view that,

++ this petition has been filed after a delay of 596 days. There is an inadequate and unconvincing explanation given for the delay in filing the petition. it is mentioned in the proforma for first listing that a similar matter being C.A. No. 7096/2012 is pending in this Court. However, the office has given a report stating that C.A. No. 7096/2012 was decided by this Court as far back as on 27.09.2012. In other words, the Revenue have given a totally misleading statement before this Court. It is absolutely shocking to see that the Union of India through the Commissioner of Income Tax took the matter so casually;

++ considering the inadequate explanation of delay of 596 days in filing the petition and a misleading statement about pendency of a similar civil appeal. Under the circumstances, the petition is dismissed with costs of Rs.10 lacs to be paid to the Supreme Court Legal Services Committee within four weeks from today. The amount be utilized for juvenile justice issues.

(See 2018-TIOL-348-SC-IT-LB)