AGA VIZHI CHARITABLE TRUST,SALEM V. CIT (EXEMPTIONS), CHENNAI

ITA 1828/CHNY/2024

AI Insights

The case involves AGA VIZHI Charitable Trust, which filed an appeal against the order of the Commissioner of Income Tax (Exemption), Chennai, who had rejected the Trust's application for registration under section 12A(1)(ac)(v) of the Income Tax Act, 1961. The Trust had submitted its application in form No.10AB, which was questioned by the Commissioner regarding the genuineness of the Trust's activities. Despite the Trust providing necessary documents and explanations, the Commissioner issued a show cause notice and subsequently rejected the application based on perceived irregularities and inconsistencies. The Tribunal criticized the Commissioner's approach as overly technical and not in line with the substantive requirements of the law.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 107594 (ITAT-CHENNAI)
• Duration Of Justice: 4 month(s) 28 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-11-2024
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: A
• Next Hearing Date: 29-10-2024
• Assessment Year: 2024-2025
• Appeal Filed On: 01-07-2024
• Laws Referred To: Income Tax Act, 1961, Income Tax Rules, 1962
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: NILAY BARAN SOM; IRS
• Assessee Lawyers: P.M. KATHIR
• Keywords: Set aside; Charitable institution

Judgement Text

"आयकर अपीलीय अिधकरण, “ए”, यपीठ,चेɄई IN THE INCOME TAX APPELLATE TRIBUNAL ‘A’ BENCH, CHENNAI माननीय ŵी मनु क ुमार िगįर, Ɋाियक सद˟ एवं माननीय ŵी एस.आर. रघुनाथा, लेखा सद˟ क े समƗ BEFORE HON’BLE SHRI MANU KUMAR GIRI, JUDICIAL MEMBER AND HON’BLE SHRI S.R. RAGHUNATHA, ACCOUNTANT MEMBER आयकर अपील सं./ITA No.1828 /CHNY/2024 AGA VIZHI Charitable Trust, 204, Subam Residency, Chinnathirupathy, Salem 636 008. PAN: AAETA 5952B Vs. The Commissioner of Income Tax, Exemption, Chennai. (अपीलाथᱮ/Appellant) (ᮧ᭜यथᱮ/Respondent) अपीलाथᱮ कᳱ ओर से/Appellant by : Shri P.M. Kathir, Advocate ᮧ᭜यथᱮ कᳱ ओर से/Respondent by : Shri Nilay Baran Som, IRS, CIT. सुनवाई कᳱ तारीख/Date of Hearing : 29.10.2024 घोषणा कᳱ तारीख/Date of Pronouncement : 29.11.2024 आदेश /O R D E R PER MANU KUMAR GIRI (Judicial Member) This appeal filed by the assessee is arising out of the order of the Ld. Commissioner of Income Tax (Exemption) Chennai (in short ‘’the Ld. CIT (E)’’) dated 17.05.2024 2. The assessee has filed an application on 17.11.2023 in form No.10AB - 2 - ITA No.1828 /Chny/2024 under Rules 17A of the Income Tax Rules, 1962 (in short ‘’the Rules’’) seeking registration u/s.12A (1) (ac)(v) of the Income Tax Act, 1961 (in short ‘’the Act’’). The CIT (E) to know the genuineness of the activities of the trust has requested assessee vide letter dated 02.04.2024 through e-Filing/ ITBA portal to furnish Note on activities, Annual Accounts of the trust, financial Statements of the trust etc., either by uploading online in the e-filing portal or by Post, on or before 17.04.2024. The assessee submitted the submissions on 12.04.2024. The ld CIT(E) noticed certain irregularities / inconsistencies / anomalies and accordingly, a show cause notice dated 08.05.2024 was issued to the assessee. In response to the show cause notice dated 08.05.2024, the applicant filed letter on 15.05.2024 and stated that it has not violated any of the provisions of the law and will register the amendment after obtaining approval from the Commissioner of Income Tax and requested for the approval. However, explanation furnished by the applicant was not accepted by the ld. CIT(E) and rejected the application for registration. Aggrieved, assessee filed an appeal before us. 3. The ld. counsel argued the same points what is narrated in the grounds of appeal. He further submitted that as per the provisions of section 12A(1)(ac)(v), there is no facility to file such purported form, hence filed the same in letter form. Per contra, the ld.DR relied upon the order of the ld.CIT(E). - 3 - ITA No.1828 /Chny/2024 4. We have heard the rival submissions and perused the record and find that the ld.CIT(E) erred in not entertaining the application on hyper technical ground. The ld.CIT(E) was supposed to see whether objects as submitted by the assessee in the application for registration are as per law or not. Hence, summary dismissal of the application for registration filed in Form 10AB seeking registration u/s 12A(1)(ac)(v) on hyper technical ground is not justified. Therefore, we set aside the impugned order passed by the ld.CIT(E) and direct him to decide the application for registration filed on 17.11.2023 in Form 10AB seeking registration u/s 12A(1)(ac)(v) on merits as per law. 5. In result, appeal of the assessee is allowed for the statistical purpose. Order pronounced in the open court on 29th day of November 2024 at Chennai. Sd/- Sd/- एस.आर. रघुनाथा (S.R. RAGHUNATHA) लेखा सदèय/ ACCOUNTANT MEMBER (मनु क ुमार ͬगǐर) (MANU KUMAR GIRI) ÛयाǓयक सदèय / JUDICIAL MEMBER चे᳖ई/Chennai, ᳰदनांक/Dated, the 29th November, 2024 KV आदेश कᳱ ᮧितिलिप अᮕेिषत/Copy to: 1. अपीलाथᱮ/Appellant 2. ᮧ᭜यथᱮ/Respondent 3. आयकर आयुᲦ /CIT, Chennai/Coimbatore/Madurai/Salem. 4. िवभागीय ᮧितिनिध/DR 5. गाडᭅ फाईल/GF. "