TMI Blog2021 (6) TMI 143X X X X Extracts X X X X X X X X Extracts X X X X ..... eeks from the date of receipt of a copy of this order to offer their explanation in response to the impugned notices. - W.P.(MD)Nos.25375 & 25379 of 2018 And W.M.P.(MD)Nos.1531 & 1532 of 2019 and 22963 & 22965 of 2018 - - - Dated:- 23-3-2021 - Honourable Mr.Justice G.R.Swaminathan For the Petitioner : Mrs.N.Krishnaveni Senior Counsel for Mr.P.Thiyagarajan For the Respondents : Ms.M.Parameswarifor Mrs.S.Srimathy Standing Counsel COMMON ORDER Heard the learned senior counsel appearing for the petitioners and the learned standing counsel appearing for the Income Tax Department. 2.The petitioners herein are the Public Charitable Trusts that have been registered under Section 12(A)(a) of Income Tax Act and are enjoying ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... been filed at the show cause notice stage itself deserve dismissal. The learned Standing Counsel placed reliance on the decision of the Hon'ble Supreme Court reported in (2006) 12 SCC 28 (Union of India Vs. Kunisetty Satyanarayana ). 4.I carefully considered the rival contentions and went through the materials on record. 5.The learned Senior Counsel appearing for the petitioner submitted that the petitioners / Trusts have been constrained to move this Court at the show cause notice stage itself, because the impugned notices threatened to cancel the primary exemption enjoyed by the Trusts. She would point out that the impugned show cause notices are not in consonance with the circular issued by the Department. She drew my att ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nsideration in the said decision was whether on the facts and in the circumstances of the case, the Tribunal was right in holding that the denial of exemption should only be to the extent of the income which is violative of Section 13(1)(d) and not the total denial of exemption under Section 11. The Tribunal order was confirmed and the appeal filed by the revenue was rejected by referring to the aforesaid circular. 7.I am therefore of the view that the apprehension expressed by the petitioner may not be having any basis. The second respondent is only proposing to forfeit the exemption only in respect of the offending payments. The Trusts need not entertain any fear that exemption granted to them under Section 11 of the Act itself would b ..... X X X X Extracts X X X X X X X X Extracts X X X X
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