C.D. TRUST,CHENNAI V. CIT, EXEMPTIONS, CHENNAI

ITA 1148/CHNY/2025

AI Insights

The case involves C.D. Trust, a Public Charitable Trust, which appealed against the decision of the CIT(E) rejecting their application for registration under section 12AB of the Income Tax Act, 1961. The CIT(E) had rejected the application on the grounds that the Trust failed to provide necessary details as requested. The Trust argued that they had sought additional time to provide the details due to the unavailability of their Chartered Accountant, and that they had indeed submitted the required details shortly after the CIT(E)'s deadline. The Tribunal found that the CIT(E) had not considered the Trust's request for an extension before rejecting the application, and thus decided to set aside the CIT(E)'s order and remand the case for a fresh decision.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 706067 (ITAT-CHENNAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-06-2025
• 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: BIPIN C.N
• Assessee Lawyers: KUMAR
• Keywords: Set aside; Charitable institution

Judgement Text

"आयकर अपीलीय अधिकरण, ’सी’ न्यायपीठ, चेन्नई। IN THE INCOME TAX APPELLATE TRIBUNAL ‘C’ BENCH: CHENNAI माननीय श्री मनु क ुमार धिरर ,न्याधयक सदस्य एवं माननीय श्री अमिताभ शुक्ला, लेखा सदस्य क े सिक्ष BEFORE HON’BLE SHRI MANU KUMAR GIRI, JUDICIAL MEMBER AND HON’BLE SHRI AMITABH SHUKLA, ACCOUNTANT MEMBER आयकर अपील सं./ITA No.1148/Chny/2025 Assessment Years: - C.D.Trust, No.1, Thiruvenkadam, D’Silva, Road, Mylapore, Chennai-600 004. [PAN: AABTC1055E] Commissioner of Income Tax (Exemptions), Chennai (अपीलार्थी/Appellant) (प्रत्यर्थी/Respondent) अपीलार्थी की ओर से/ Assessee by : Mr.Kumar, Advocate प्रत्यर्थी की ओर से /Revenue by : Mr.Bipin C.N, Addl.CIT सुनवाई की तारीख/Date of Hearing : 18.06.2025 घोषणा की तारीख /Date of Pronouncement : 30.06.2025 आदेश / O R D E R PER MANU KUMAR GIRI, JM: This appeal at the instance of the assessee is directed against order of CIT(E) dated 11.02.2025, rejecting Form No.10AB filed for seeking registration u/s.12AB of the Income Tax Act, 1961 (hereinafter the ‘Act’). 2. Brief facts of the case are that the assessee is a Public Charitable Trust and has filed Form No.10AB online on 29.08.2024 u/s 12A(1)(ac)(vi) B of the Act seeking registration u/s.12AB of the Act. ITA No.1148 /Chny/2025 Page - 2 - of 3 The ld. CIT(E) called for certain details by his letter dated 27.12.2024. Assessee could filed the necessary details as asked by the CIT(E). Hence, the CIT(E) vide his order dated 11.02.2025 rejected the aforesaid application on the ground that the applicant Trust has failed to file necessary details. Therefore, CIT(E) has treated the application filed in Section 12A(1)(a)(vi) B in Form 10AB as not maintainable. Aggrieved, assessee is in appeal before us. 3. Before us, the ld. Counsel for assessee submitted that on 06.02.2025 the assessee Trust filed a letter seeking time of 15 days to file the details called for as the Chartered Accountant of the Trust was not available. However, the ld. CIT(E) proceeded to reject the aforesaid application filed under Form 10AB. The ld. counsel also filed documents to show that the assessee has in fact filed complete details on 12.02.2025 however, ld. CIT(E) has rejected the application on 11.02.2025. The ld.DR stated that no lenient view is to be taken in this case and prayed for dismissal of appeal. 4. We have heard the rival submissions and perused the record. We find that the Form No.10AB filed for seeking registration u/s.12AB of the Income Tax Act, 1961 has been rejected as the assessee has not complied with the notices through which necessary details were called for. We also find that the application of the assessee seeking ITA No.1148 /Chny/2025 Page - 3 - of 3 adjournment dated 06.02.2025 has not been considered by the CIT(E) before rejecting the Form 10AB. Accordingly, in the interest of justice, the impugned order is set aside and the appeal is restored back to the file of Ld. CIT(E) with a direction to the ld. CIT(E) to allow an opportunity to the assessee to substantiate the application filed in Form 10AB online on 29.08.2024 u/s 12A(1)(ac)(vi) B of the Act seeking registration u/s.12AB of the Act and thereafter, consider the same on merits as per law. The assessee is also directed to substantiate its application by filing the details called for. 5. In the result, appeal filed by the assessee is allowed for statistical purpose. Order pronounced in the open court on 30th day of June, 2025 at Chennai. Sd/- Sd/- (अमिताभ शुक्ला) ( िनु क ुिार गिरर) ( Amitabh Shukla ) ( Manu Kumar Giri) लेखा सदस्य / Accountant Member न्याययक सदस्य/ Judicial Member चेन्नई/Chennai, धदनांक/Dated: 30th , June-2025. KB/- आदेश की प्रतितिति अग्रेतिि/Copy to: 1. अिीिार्थी/Appellant 2. प्रत्यर्थी/Respondent 3. आयकर आयुक्त/CIT - 4. तिभागीय प्रतितिति/DR 5. गार्ड फाईि/GF "