AASAAN CHARITABLE TRUST,COIMBATORE V. CIT EXEMPTIONS, CHENNAI

ITA 150/CHNY/2025

AI Insights

The case involves the Aasan Charitable Trust, which appealed against the decision of the Commissioner of Income Tax (Exemption), Chennai, who had rejected the trust's application for registration under Section 80G(5)(iii) of the Income Tax Act, 1961. The rejection was primarily due to the trust's non-compliance with notices to furnish relevant documents, as the trust failed to respond due to the unexpected departure of its accountant, who had managed the communications. The Tribunal, considering the circumstances and the principles of natural justice, decided to remit the case back to the CIT(E) for a fresh decision, allowing the trust another opportunity to comply and substantiate its claim.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 107169 (ITAT-CHENNAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-04-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SHIVANAND K KALAKERI
• Assessee Lawyers: K. MUTHUKUMAR; C.A
• Keywords: Set aside; Principle of natural justice; Charitable institution
• Section: 80G

Judgement Text

"आयकर अपीलीय अिधकरण, ‘बी’ \u0011ा यपीठ, चे\u0016ई। IN THE INCOME TAX APPELLATE TRIBUNAL ‘B’ BENCH: CHENNAI \u0019ी मनु क ुमा र िग र, \u0011ा ियक सद! एवं \u0019ी जगदीश, लेखा सद! क े सम( BEFORE SHRI MANU KUMAR GIRI, JUDICIAL MEMBER AND SHRI JAGADISH, ACCOUNTANT MEMBER आयकर अपील सं./ITA No.150/Chny/2025 Aasan Charitable Trust, No.34, Kalyanasundharam Street, Pappanaickenpudhur, Coimbatore North, Coimbatore – 641 041. Vs. The Commissioner of Income Tax (Exemption), Chennai. [PAN: AAETA 5659F] (अपीलाथ\u0007/Appellant) (\b यथ\u0007/Respondent) अपीलाथ9 की ओर से/ Appellant by : Shri K. Muthukumar, C.A ;<थ9 की ओर से /Respondent by : Shri Shivanand K Kalakeri, CIT सुनवाई की तारीख/Date of Hearing : 19.03.2025 घोषणा की तारीख /Date of Pronouncement : 17.04.2025 आदेश / O R D E R PER JAGADISH, A.M : Aforesaid appeal filed by the assessee arises out of the order of Learned Commissioner of Income Tax (Exemption), Chennai [hereinafter “CIT(E)”] dated 11.12.2024 in rejecting the application for registration filed in Form 10AB seeking approval u/s. 80G(5)(iii) of the Income Tax Act, 1961 (hereinafter “the Act”). 2. The assessee is a Trust and filed online application in Form- 10AB under sub-clause(iii) of first proviso to Section 80G(5) of the Act ITA No.150/Chny/2025 :- 2 -: seeking approval u/s. 80G of the Act. The Ld. CIT(E) issued letter dated 09.09.2024 through e-filing/ITBA to furnish the relevant documents on or before 04.10.2024. However, there was no response. Subsequently, a show cause notice was also issued, which was remained un-complied with. Therefore, the Ld. CIT(E) passed an order rejecting the application u/s. 80G(5)(iii) of the Act. 3. At the outset, the Ld. Authorized Representative (A.R) of the assessee has stated that the assessee could not submit the response due to unexpected departure of its Accountant. It was further submitted that the registered email ID belonged to the said Accountant, who had left the job, and consequently, the assessee was unaware of the communications. Hence, it was prayed that one more opportunity may be granted in the interests of justice to substantiate its claim. 4. On the other hand, the Ld. Departmental Representative (DR), has relied on the orders of lower authorities. 5. We have heard the rival submissions, and perused the materials available on record. On perusal of the order of Ld. CIT(E), it is evident that the application in Form 10AB was rejected on the ground of non- compliance with the notices issued. The Ld. A.R has submitted that ITA No.150/Chny/2025 :- 3 -: the Ld. CIT(E) has rejected the application without providing adequate opportunity to the assessee and requested to remit back case to the Ld. CIT(E) for fresh adjudication. Considering the principles of natural justice, we are of the view that the assessee be provided with another opportunity of hearing to present its case and file before the Ld. CIT(E). Accordingly, we set aside the impugned order and remit the matter back to the file of the Ld. CIT(E) for fresh adjudication in accordance with law. We also direct the assessee to appear before the Ld. CIT(E) on the date of hearing without fail and furnish all relevant documents and information for fresh consideration. In view of the above, the appeal filed by the assessee is allowed for statistical purposes only. 6. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced on 17th April, 2025. Sd/- Sd/- (मनु क ुमार िग र) (Manu Kumar Giri) \u0011ाियक सद! / Judicial Member (जगदीश) (Jagadish) लेखा लेखा लेखा लेखा सद\u0011य सद\u0011य सद\u0011य सद\u0011य /Accountant Member चे\u0013नई/Chennai, \u0016दनांक/Dated: 17th April, 2025. EDN/- ITA No.150/Chny/2025 :- 4 -: आदेश क\u0019 \bितिल प अ े षत/Copy to: 1. अपीलाथ\u0007/Appellant 2. \b थ\u0007/Respondent 3. आयकर आयु\u000f/CIT, Chennai 4. िवभागीय \bितिनिध/DR 5. गाड\u0018 फाईल/GF "