CHIDANGNI FOUNDATION,CHENNAI V. CIT EXEMPTIONS, CHENNAI

ITA 124/CHNY/2025

AI Insights

The case involves M/s. Chidagni Foundation, which filed two appeals against the orders of the Commissioner of Income Tax (Exemption), Chennai, concerning the denial of exemption under sections 12A and 80G of the Income Tax Act for the Assessment Year 2022-23. The primary contention was the alleged violation of the appellant's right to a fair hearing, as the Commissioner had rejected the applications citing insufficient details without providing the appellant an opportunity to respond. The Tribunal found merit in the appellant's argument and directed a re-evaluation of the case, emphasizing the need for a fair hearing.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 714305 (ITAT-CHENNAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-08-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Assessment Year: 2022-2023
• Laws Referred To: Section 12A, Section 80G
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: C. YAMUNA
• Assessee Lawyers: J. SARAVANAN
• Keywords: Set aside; Opportunity of being heard
• Section: 12A; 80G

Judgement Text

"आयकर अपीलीय अधिकरण, ’सी’ न्यायपीठ, चेन्नई। IN THE INCOME TAX APPELLATE TRIBUNAL ‘C’ BENCH: CHENNAI श्री एबी टी. वर्की, न्यायिर्क सदस्य एवं श्री अयिताभ शुक्ला, लेखा सदस्य क े समक्ष BEFORE SHRI ABY T VARKEY, JUDICIAL MEMBER AND SHRI AMITABH SHUKLA, ACCOUNTANT MEMBER आयकर अपील सं./ITA No.123/Chny/2025, Assessment Years: 2022-23 आयकर अपील सं./ITA No.124/Chny/2025, Assessment Years: 2022-23 M/s.Chidagni Foundation Apartment No.07081, DLF Garden City, Thazambur, Chennai- 600 130. [PAN: AADTC1503F] Commissioner of Income Tax (Exemption), Chennai. (अपीलार्थी/Appellant) (प्रत्यर्थी/Respondent) अपीलार्थी की ओर से/ Assessee by : Mr.J.Saravanan, Advocate, प्रत्यर्थी की ओर से /Revenue by : Mrs.C.Yamuna, CIT सुनवाई की तारीख/Date of Hearing : 17.07.2025 घोषणा की तारीख /Date of Pronouncement : 06.08.2025 आदेश / O R D E R PER AMITABH SHUKLA, A.M : The below mentioned two appeals have been filed by the appellant assessee for AY-2022-23 contesting the order of Ld. CIT(E ) indicated Column-E, herein below:- S. No. Appeal Nos. AYs Appellant CIT(A) Order Details Respondent A B C D E F 1 ITA No. 123 / Chny / 2025 2022-23 M/s.Chidagni Foundation Apartment No.07081, DLF Garden City, Thazambur, Chennai- 600 130. [PAN: AADTC1503F] DIN & Order No. ITBA / EXM / F / EXM45 / 2024-25 / 1070702355(1) dated 28.11.2024 Commissioner of Income Taxes (Exemption), Chennai. 2 ITA No. 124 / Chny / 2025 2022-23 DIN & Order No. ITBA / EXM / F / EXM45 / 2024-25 / 1070702417(1) dated 28.11.2024 Printed from counselvise.com ITA No. 123 & 124 /Chny/2025 Page - 2 - of 4 2.0 Both the above appeals of the assessee are centering around the common ground of denial of exemption u/s. 12A and section 80G and hence for the purposes of convenience were heard together and are being adjudicated by this common order. For the purposes of convenience we will consider the appeal of the assessee in ITA 123/Chny/2025 qua denial of exemption u/s 12A. As the facts are identical the decision therein shall apply mutatis mutandis to ITA No.124/Chny/2025 as well. 3.0 At the outset, the Ld.Councel for the assessee explained that its application u/s. 12A was made before the Ld.CIT(E ), Chennai on 13.05.2024 through Form-10AB. The Ld.Counsel has submitted that the Ld.CIT(E ) has summarily rejected its petition holding that requested details have not been provided by it. It has been contended that the same is not wholly correct and therefore its natural right of being granted adequate opportunity of being heard stands violated. It was accordingly requested that the matter may be considered for remission back to the Ld.CIT(E ) with the directions for readjudication de novo after giving adequate opportunity of being heard. 4.0 Per contra, the Ld.DR relied upon the order of lower authorities. 5.0 We have heard the rival submissions in the light of material available on records. We have noted that there is sufficient force in the argument of the assessee of not being accorded adequate opportunity of Printed from counselvise.com ITA No. 123 & 124 /Chny/2025 Page - 3 - of 4 being heard before drawing adverse conclusions in its case. We have noted from para 4.1 to para 5 of the order of the Ld.CIT(E ) supra that he has alluded to several deficiencies in the submissions and details filed by the assessee. There is nothing on record however to indicate that the assessee was given an opportunity to offer any counter defence. We have noted that the Ld.CIT(E ) has drawn unilateral conclusions before rejecting the application u/s 12A. Due opportunity of being heard is natural right of every litigant and cannot be denied or deprived during any judicial proceedings. Accordingly, in the interest of justice, we set aside the order of the Ld.CIT(E ) and direct him to readjudicate the matter de novo, in accordance with law after giving due opportunity of being heard to the assessee. It shall be bounden upon the assessee to comply all the statutory notices issued by the department. Accordingly, all the grounds of appeal raised by the assessee in ITA 123/Chny/2025 are allowed for statistical purposes. 6.0 We have noted that the facts of the case in ITA No.124 for AY- 2022-23 are identical qua violation of assessee’s right of being heard and therefore the decision taken in ITA No.123 shall apply mutatis mutandis in ITA No.124 for AY-2022-23. Printed from counselvise.com ITA No. 123 & 124 /Chny/2025 Page - 4 - of 4 7.0 In the result, the appeal in ITA No.123 and ITA No.124 for AY- 2022-23 are allowed for statistical purposes. Order pronounced on 6th , Aug-2025 at Chennai. Sd/- (एबी टी. वर्की) (ABY T VARKEY) न्याधयक सदस्य / Judicial Member Sd/- (अधमताभ शुक्ला) (AMITABH SHUKLA) लेखा सदस्य /Accountant Member चेन्नई/Chennai, धदनांक/Dated: 6th , Aug-2025. KB/- आदेश की प्रतितिति अग्रेतिि/Copy to: 1. अिीिार्थी/Appellant 2. प्रत्यर्थी/Respondent 3. आयकर आयुक्त/CIT - Chennai/Coimbatore/Madurai/Salem. 4. तिभागीय प्रतितिति/DR 5. गार्ड फाईि/GF Printed from counselvise.com "