ARUWE,CHENNAI V. CIT, EXEMPTIONS, CHENNAI

ITA 1700/CHNY/2024

AI Insights

The case involves an appeal by Aruwe against the order of the Learned Commissioner of Income Tax (Exemptions), Chennai, which rejected an application filed in Form 10AB under section 80G(5) of the Income Tax Act, 1961, and cancelled a previously granted approval for five years. The Tribunal found that the cancellation was done without prior notice or an opportunity for a hearing, which was deemed bad in law. The Tribunal noted that the application filed by Aruwe was premature as it was submitted before the expiry of the approval period, but this did not warrant the cancellation of the earlier approval without due process.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 469826 (ITAT-CHENNAI)
• Duration Of Justice: 4 month(s) 10 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-10-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 21-08-2024
• Assessment Year: misc
• Appeal Filed On: 07-06-2024
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: NILAY BARAN SOM
• Assessee Lawyers: D.ANAND
• Keywords: Set aside

Judgement Text

"आयकर अपील\tय अ धकरण, ‘ए’ \u000eयायपीठ, चे\u000eनई। IN THE INCOME TAX APPELLATE TRIBUNAL ‘A’ BENCH: CHENNAI \u0001ी एबी टी. वक , \u000bाियक सद\u0011 एवं एवं एवं एवं \u0001ी मनोज क ुमार अ\u0019वाल, लेखा सद\u0007 क े सम\u001d BEFORE SHRI ABY T. VARKEY, JUDICIAL MEMBER AND SHRI MANOJ KUMAR AGGARWAL, ACCOUNTANT MEMBER आयकर अपील सं./ITA No.1700/Chny/2024 \u0018नधा\u0019रण वष\u0019/Assessment Year: - Aruwe, No.11, Solaiamman Koil Street, Ayanavaram, Chennai-600 23. v. The CIT (Exemptions), Chennai. [PAN: AAATA 7583 J] (अपीलाथ\u001d/Appellant) (\u001e\u001fयथ\u001d/Respondent) अपीलाथ\u001d क ओर से/ Appellant by : Mr.D. Anand, Advocate \u001e\u001fयथ\u001d क ओर से /Respondent by : Mr. Nilay Baran Som, CIT सुनवाईक तार\tख/Date of Hearing : 21.08.2024 घोषणाक तार\tख /Date of Pronouncement : 18.10.2024 आदेश / O R D E R PER ABY T. VARKEY, JM: This is an appeal preferred by the assessee against the order of the Learned Commissioner of Income Tax (Exemption), (hereinafter in short \"the Ld.CIT(E)”), dated 09.04.2024 rejecting the application filed by the assessee in Form 10AB dated 02.10.2023 u/s.80G(5) of the Income Tax Act, 1961 (hereinafter in short \"the Act”) and also cancelling the approval already granted u/s.80G for five years dated 14.10.2021. ITA No.1700/Chny/2024 (AY -) Aruwe :: 2 :: 2. The Ld.AR brought to our notice that the assessee has been granted approval on 14.10.2021 by the Ld.CIT(E) from 14.10.2021 for AYs 2022- 23 to 2026-27 u/s.80G(5) of the Act for five years and placed a copy of the order. However, inadvertently the assessee filed another application on 02.10.2023 in Form 10AB, which application has been rejected by the Ld.CIT(E) and also canceled the approval granted earlier by the department on 14.10.2021, without prior notice. We don’t countenance this impugned action of the Ld.CIT(E). We note that the assessee Trust was granted approval u/s.80G(5) of the Act on 14.10.2021 from AYs 2022-23 to 2026-27 and therefore, had to necessarily file application for renewal before expiry of six months of AY 2026-27, and instead, the assessee has filed it inadvertently on 02.10.2023, which application was per-se premature. 3. And since, the assessee is enjoying the approval u/s.80G(5)(i) of the Act for five years from AYs 2022-23 to 2026-27, the ibid application filed by assessee inadvertently on 02.10.2023 is held to be premature and therefore, infructuous; and since the Ld.CIT(E) has cancelled the earlier approval granted on 14.10.2021 without prior notice/granting opportunity of hearing, it is held to be bad in law, and so we set aside the same and direct the Ld.CIT(E) to restore the approval granted on 14.10.2021 for five years [i.e., AYs 2022-23 to 2026-27]. ITA No.1700/Chny/2024 (AY -) Aruwe :: 3 :: 4. In the result, appeal filed by the assessee is allowed. Order pronounced on the 18th day of October, 2024, in Chennai. Sd/- (मनोज क ुमार अ\u0019वाल) (MANOJ KUMAR AGGARWAL) लेखा सद*य/ACCOUNTANT MEMBER Sd/- (एबी टी. वक ) (ABY T. VARKEY) \u000eया\u0018यक सद*य/JUDICIAL MEMBER चे\u000eनई/Chennai, +दनांक/Dated: 18th October, 2024. TLN, Sr.PS आदेश क \u001e\u0018त,ल-प अ.े-षत/Copy to: 1. अपीलाथ\f/Appellant 2. \r\u000eथ\f/Respondent 3. आयकरआयु\u0014/CIT, Chennai / Madurai / Salem / Coimbatore. 4. िवभागीय\rितिनिध/DR 5. गाड\u001dफाईल/GF "