Bombay HC allows Petition by Directing JCIT to Supply a Copy of Exemption Certificate u/s 12 A of Income Tax Act [Read Order]

The Bombay High Court allowed petition by directing to Joint Commissioner of Income Tax ( JCIT )to supply a copy of certificate of exemption under Section 12 A of Income Tax Act, 1961.

The petition claims a direction against the respondents, for issuance of a copy of the certificate evidencing registration under Section 12A of the Income Tax Act. It was contended, that the petitioner which is Charitable Trust registered under the Bombay Public Trust Act, was registered under Section 12A  of the Income Tax  Act  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 Income Tax  Act.

It was 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 along with an affidavit, which request was reiterated by the communication dated 06.03.2023, 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

Mr. Hirani, counsel for the petitioner, relied upon the exemption order dated 14.11.1973 (page 52) which granted exemption to the petitioner/Trust under Section 80G of the Income Tax Act for a period up to 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 was therefore contended, that since the petitioner/Trust stands exempted under Section 12A of the Income Tax Act, 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.

Mr. Parchure, counsel for the respondents, does not dispute that in case a Trust is granted an exemption under Section 80G of the Income Tax Act 1961, that necessarily mandates the preexistence of an exemption being granted to the Trust under Section 12A of the Income Tax Act 1961. He also does not dispute the assessment order dated 11.12.2017

It would therefore be apparent that the fact that the petitioner/Trust was granted an exemption under Section 12A of the Income Tax Act 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. This being the position, the petitioner/Trust would be entitled to a copy of the certificate indicating its registration under Section 12A of the Income Tax Act and all benefits arising therefrom.

The division bench of Justice M.S Jawalkar and Justice Avinash G. Gharote allowed the petition by directing the respondents to supply a copy of a certificate of exemption under Section 12A of the Income Tax Act to the petitioner/Trust and to also accord all benefits arising therefrom to it. Accordingly, the petition was accordingly allowed.

To Read the full text of the Order CLICK HERE

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