ASGARDIA FOUNDATION,CHENNAI V. CIT, EXEMPTIONS, CHENNAI

ITA 614/CHNY/2025

AI Insights

The case involves the Asgardia Foundation appealing against the decisions of the Commissioner of Income Tax (Exemption), Chennai, which had rejected their applications for registration under section 12AB and approval under section 80G of the Income-tax Act, 1961. The foundation argued that they had not been able to present crucial evidence supporting their charitable activities during the initial review. The tribunal, considering the circumstances, decided to remit the matters back to the CIT(E) for a fresh evaluation, allowing the foundation to submit the necessary documentation and evidence.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 712232 (ITAT-CHENNAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-07-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Assessment Year: misc
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: E.PAVUNA SUNDARI
• Assessee Lawyers: R. KANNAN
• Keywords: Opportunity of being heard
• Section: 12A; 80G

Judgement Text

"आयकर अपीलीय अिधकरण, ‘ए’ \u0011ा यपीठ, चे\u0016ई। IN THE INCOME TAX APPELLATE TRIBUNAL ‘A’ BENCH: CHENNAI \u0019ी एबी टी. वक , \u0011ा ियक सद! एवं \u0019ी जगदीश, लेखा सद! क े सम( BEFORE SHRI ABY T. VARKEY, JUDICIAL MEMBER AND SHRI JAGADISH, ACCOUNTANT MEMBER आयकर अपील सं./ITA Nos.614 & 615/Chny/2025 Asgardia Foundation, 3rd Floor, Aiswariya Cottage, West Road, Nandanam, Chennai – 600 035. Vs. The Dy. Commissioner of Income Tax (Exemption), Chennai. [PAN: AAITA 7322F] (अपीलाथ\u0007/Appellant) (\b यथ\u0007/Respondent) अपीलाथ की ओर से/ Appellant by : Shri R. Kannan, Advocate =>थ की ओर से /Respondent by : Ms. E. Pavuna Sundari, CIT सुनवाई की तारीख/Date of Hearing : 01.07.2025 घोषणा की तारीख /Date of Pronouncement : 30.07.2025 आदेश / O R D E R PER JAGADISH, A.M : Aforesaid appeals filed by the assessee arises out of the orders of Learned Commissioner of Income Tax (Exemption), Chennai [hereinafter “CIT(E)”] dated 31.12.2024 in rejecting approval for registration u/s. 12A(1)(ac)(iii) of the Income-tax Act, 1961 (hereinafter “the Act”) and approval u/s 80G of the Act. Printed from counselvise.com ITA Nos.614 & 615/Chny/2023 Asgada Foundation :- 2 -: ITA No.614/Chny/2025: 2. The Ld CIT(E) has rejected the application filed by the assessee in Form 10AB u/s. 12(1)(ac)(iii) of the Act on 25.06.2024 seeking registration u/s. 12AB of the Act for the reason that the activities of the trust is not Relief of the poor, Education, Medical relief and preservation of environment as defined in Section 2(15) of the Act . 3. The Learned Authorized Representative (AR), before us has submitted that he has evidences in support of its activities, like photographs, newspaper publications, etc. but the same could not be produced before the Ld. CIT(E) and, therefore, requested for one more opportunity to file the necessary details before the Ld. CIT(E). 4. On the other hand, the Ld. Departmental Representative (DR), has relied on the orders of lower authorities. 5. We have heard both the parties and gone through the order of the Ld. CIT(E). The Ld. CIT(E) rejected the application for registration u/s. 12AB of the Act after examining the objects of the trust and its financial statements. However, before us, the Ld. AR has submitted that the assessee has evidences to demonstrate that it has undertaken charitable activities, but could not be furnished before Ld CIT(E), Printed from counselvise.com ITA Nos.614 & 615/Chny/2023 Asgada Foundation :- 3 -: therefore one more opportunity may be provided before Ld CIT(E). Considering the submissions and in the interest of justice, we are of the view that one more opportunity should be granted to the assessee to present its case before Ld CIT(E). Accordingly, we remit the matter back to the file of the Ld. CIT(E) for fresh consideration of the application, after affording the assessee a reasonable opportunity of being heard. We also direct the assessee to appear before the Ld. CIT(E) on the date of hearing without fail and submit all the relevant documents sought for by the Ld. CIT(E). In view of the above, the appeal filed by the assessee is allowed for statistical purposes only. ITA No.615/Chny/2025: 6. In this case, the Ld. CIT(E) had rejected the assessee’s application for approval u/s. 80G(5) of the Act on the ground that the assessee has failed to prove the activities of the trust are in charitable as defined in section 2(15) of the Act. Since, we have already remitted the matter relating to registration u/s. 12A back to the file of the Ld. CIT(E) for fresh consideration, we are of the considered opinion that the issue of approval u/s. 80G(5) of the Act also requires reconsideration. Accordingly, we remit this matter as well to the file of Printed from counselvise.com ITA Nos.614 & 615/Chny/2023 Asgada Foundation :- 4 -: the Ld. CIT(E) for fresh adjudication, after giving due opportunity to the assessee to clarify its objects and activities. 7. In the result, both the appeals filed by the assessee is allowed for statistical purposes. Order pronounced on 30th day of July, 2025 at Chennai. Sd/- Sd/- (एबी टी. वक ) (ABY. T. Varkey) \u0011ाियक सद! / Judicial Member (जगदीश) (Jagadish) लेखा सद! /Accountant Member चे\u0010नई/Chennai, \u0013दनांक/Dated: 30th July, 2025. EDN/- आदेश क\u0016 \bितिल\u0019प अ\u001aे\u0019षत/Copy to: 1. अपीलाथ\b/Appellant 2. थ\b/Respondent 3. आयकर आयु\u0010/CIT, Chennai 4. िवभागीय ितिनिध/DR 5. गाड\u0019 फाईल/GF Printed from counselvise.com "