The Kerala High Court has directed to decide the appeal regarding eligibility for exemption from payment of income tax under Section 10(46A) of the Income Tax Act, 1961 , within a timeframe of four months.
The petitioner in this case is the Kerala Co-operative Deposit Guarantee Fund Board, established in accordance with the regulations outlined in SRO No. 28 of 2012 under Section 57B of the Kerala Co-operative Societies Act, 1969.
The Counsel for the petitioner C.A. Jojo has informed the court that the petitioner was a statutory entity, and under Section 10(46A) of the Income Tax Act, 1961, it qualifies for exemption from paying income tax on its earnings. The petitioner had filed an application, a true copy of the application for exemption along with a covering letter submitted before the first respondent dated 29.06.2018, seeking such exemption on June 26, 2018.
However, despite the considerable time elapsed since the submission, the authority has yet to make a decision regarding the petitioner’s application. Given the prolonged delay in the decision-making process and the absence of alternative recourse, the petitioner has turned to the court seeking appropriate remedies.
The Standing Counsel representing for the Income Tax Department, Mr. Jose Joseph, has conveyed that the Central Board of Direct Taxes ( CBDT ) has commenced the procedure to deliberate on the petitioner’s application mentioned in a true copy of the application for exemption along with a covering letter submitted before the first respondent dated 29.06.2018.
He mentioned that a request for a report has been made to the jurisdictional Commissioner. Additionally, he assured that a decision aligned with legal provisions regarding the petitioner’s application in a true copy of the application for exemption along with a covering letter submitted before the first respondent dated 29.06.2018, will be reached promptly.
The single bench of Justice Dinesh Kumar Considering the aforesaid submission and stand of the Standing Counsel for the Income Tax Department, the present Writ petition was disposed of, with direction to the second respondent to take decision as expeditiously as possible on application of the petitioner in a true copy of the application for exemption along with a covering letter submitted before the first respondent dated 29.06.2018, preferably within a period of four months.
Consequently, the writ petition stands disposed of.
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