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2021 Supreme(Gau) 343
IN THE HIGH COURT OF GAUHATI, ASSAM, NAGALAND, MIZORAM AND ARUNACHAL PRADESH
ACHINTYA MALLA BUJOR BARUA, J.
Assam Building and Others Construction Workers Welfare Board – Petitioner
Versus
The Union of India and Others – Respondents
W.P. (C) No. 3805 of 2021
Decided On : 20-08-2021
Advocate Appeared:
For the Petitioner: Ms. M. Hazarika.
Point of Law: Payment of income tax - Exemptions - After application is received by Principal Commissioner of Income Tax to Under Secretary (ITA-1), Principal Commissioner of Income Tax may do needful for passing appropriate relevant order in such application as per law.
Headnote:
Income Tax Act, 1961 - Section 10(46) - Building and other Constructions Workers (Regulation of Employment and Conditions of Service) Act, 1996 - Taxation - Without going into any other aspects as regards any tax proceedings that may have been initiated against petitioner in meantime, we take note of specific grievance that aforesaid application seeking an exemption from payment of income tax u/s 10(46) of Act, 1961 has not been given a due consideration.
Finding of the Court:
Requirement of passing the order is done within a period of one month from date of receipt of such application. If Principal Commissioner of Income Tax, is of the view that he is not the appropriate authority to pass order, Principal Commissioner of Income Tax, may place such application before appropriate authority who according to him would be competent to pass the necessary order and such authority shall do the needful within aforesaid period.
Result: Writ Petition is disposed of.
ORDER :
1. Heard Ms. M. Hazarika, learned senior counsel for the petitioner, Mr. S. Sarma, learned counsel for the respondents in the Income Tax Department as well as Mr. K. Gogoi, learned counsel for the respondents No. 1 and 2 being the authorities in the Ministry of Finance, Government of India.
2. The petitioner Assam Building and other Construction Workers Welfare Board is a body corporate created under the Building and other Constructions Workers (Regulation of Employment and Conditions of Service) Act, 1996. Under Section 10(46) of the Income Tax Act, 1961, the petitioner claims the benefit of certain income of theirs coming from the cess and the interest from the bank deposits to be not included to form the part of their total income. Section 10(46) of the Income Tax Act, 1961 refers to any specific income arising to a body or authority or Board or Trust or Commission (by whatever name called) which has been established or constituted by or under a Central, State or Provincial Act, or constituted by the Central Government or a State Government, with the object of regulating or administering any activity for the benefit of the general public; is not engaged in any commercial activity and is notified by the Central Government in the Official Gazette for the purpose of this clause. The provision of Section 10(46) of the Income Tax Act, 1961 is extracted as below:-
“(46) any specific income arising to a body or authority or Board or Trust or Commission (by whatever name called) which:
(a) has been established or constituted by or under the Central, State or Provincial Act, or constituted by the Central Government or a State Government, with the object of regulating or administering any activity for the benefit of the general public.
(b) is not engaged in any commercial activity.
(c) and is notified by the Central Government in the Official Gazette for the purpose of this clause.”
3. In furtherance of the claim for that part of the income to be exempted from the total income u/s 10(46) of the Income Tax Act, 1961, the petitioner had made an application claiming exemption u/s 10(46) of the Income Tax Act, 1961. The said application was forwarded to the Principal Chief Commissioner of Income Tax (North-eastern Region) at Guwahati as per the communication dated 20.01.2020 of the Labour Commissioner, Assam cum Principle Secretary, Assam Building and other Constructions Workers Welfare Board.
4. Without going into any other aspects as regards any tax proceedings that may have been initiated against the petitioner in the meantime, we take note of the specific grievance that the aforesaid application seeking an exemption from payment of income tax u/s 10(46) of the Income Tax Act, 1961 has not been given a due consideration.
5. Considering the said limited grievance, we propose to give a final consideration to this writ petition.
6. Mr. S. Sarma, learned counsel for the respondents in the Income Tax Department has produced a communication dated 03.02.2020 from the Deputy Commissioner of Income Tax (Tech) on behalf of the Principal Chief Commissioner of Income Tax, Guwahati addressed to the Labour Commissioner, Assam inviting attention to the letter No. 196/6/2013-ITA-1 dated 24.06.2013 of the Central Board of Direct Taxes (in short CBDT), New Delhi. By referring to the said letter of the CBDT dated 24.06.2013, the Principal Chief Commissioner of Income Tax, North-eastern Region at Guwahati put-forth certain important points that has been extracted from the letter of the CBDT. We have also gone through the letter dated 24.06.2013 of the CBDT of the Government of India in the Ministry of Finance (Department of Revenue). The said letter provides for standardising the manner for filing application u/s 10(46) of the Income Tax Act, 1961. Clause-2 of the said letter of 24.06.2013 is extracted below:-
“2. At present, there is no uniformity in the manner in which applications under Sec. 10(46) are being filed by applicants. In order to standardize t
