DIGITAL SECURITY ASSOCIATION OF INDIA,CHENNAI V. CIT EXEMPTIONS , CHENNAI

ITA 143/CHNY/2025

AI Insights

The case involves the Digital Security Association of India, which appealed against the decision of the Commissioner of Income Tax (Exemptions), Chennai, rejecting their application for registration under section 12AB of the Income-tax Act, 1961. The rejection was based on the absence of evidence supporting the claim that the association was engaged in charitable activities such as education in cyber security. The Tribunal found that the rejection occurred too quickly after the application was filed, without providing adequate opportunity for the assessee to substantiate their case. Consequently, the Tribunal remitted the matter back to the CIT(E) for a fresh evaluation.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 787549 (ITAT-CHENNAI)
• Duration Of Justice: 9 month(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-11-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: misc
• Appeal Filed On: 21-01-2025
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: BIPIN C.N
• Assessee Lawyers: V. RAJENDRAN; CHAIRMAN DSAI
• Keywords: Opportunity of being heard

Judgement Text

" आयकर अपीलीय अिधकरण,’सी’ \u0010ा यपीठ, चे\u0015ई। IN THE INCOME TAX APPELLATE TRIBUNAL ‘C’ BENCH: CHENNAI \u0018ी एबी टी. वक , \u0010ा ियक सद एवं \u0018ी जगदीश, लेखा सद क े सम' BEFORE SHRI ABY T. VARKEY, JUDICIAL MEMBER AND SHRI JAGADISH, ACCOUNTANT MEMBER आयकर अपील सं./ITA No.143/Chny/2025 Digital Security Association of India, No.07, First Main Road, Bharat Nagar, Madipakkam, Chennai – 600 091. PAN: AADTD 1396D Vs. The Commissioner of Income Tax (Exemptions), Chennai. (अपीलाथ\u0007/Appellant) (\b यथ\u0007/Respondent) अपीलाथ की ओर से/ Appellant by : Shri V. Rajendran, Chairman (DSAI) :;थ की ओर से /Respondent by : Shri Bipin C.N, CIT सुनवाई की तारीख/Date of Hearing : 04.11.2025 घोषणा की तारीख /Date of Pronouncement : 19.11.2025 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 26.12.2024 in rejecting application for registration u/s. 12AB of the Income-tax Act, 1961 (hereinafter “the Act”). Printed from counselvise.com ITA No.143/Chny/2025 Digital Security Association of India :- 2 -: 2. The Ld. CIT(E) has rejected the application filed by the assessee on 16.12.2024 in Form No. 10AB under section 12A(1)(ac)(iii) of the Act, seeking registration u/s. 12AB of the Act. The Ld. CIT(E), while rejecting the application has observed that the assessee had not submitted any evidence in support of its contention that it was providing Religious, Relief of the Poor, Education, Medical Relief and Advancement of any other objects of general public utility. 3. The Ld. Authorized Representative (A.R.) for the assessee submitted that the assessee-trust is engaged in the education of cyber security and therefore, falls under charitable activity and entitled for registration u/s 12AB of the Act. The Ld. AR has further pointed out that the application was filed on 16.12.2024 and order rejecting the application was passed on 26.12.2024, within 10 days of filling the application, therefore proper opportunity was not provided and in the interest of justice, one more opportunity be provided to the assessee to substantiate its case before the Ld. CIT(E). 4. On the other hand, the Ld. Departmental Representative (DR), has relied on the orders of lower authorities. Printed from counselvise.com ITA No.143/Chny/2025 Digital Security Association of India :- 3 -: 5. We have heard both the parties and gone through the order of the Ld. CIT(E). The assessee-trust made an application on 16.12.2024 in Form No. 10AB under section 12A(1)(ac)(iii) of the Act, seeking registration u/s. 12AB of the Act. The Ld. CIT(E) has issued notice calling for details in seven objects on 17.12.2024 and the order was passed rejecting the application on 26.12.2024 i.e., within 10 days of the filing of application. The Ld. CIT(E) has noted that the assessee has not furnished any documentary evidence that income received was not voluntary and has not provided the details of membership fees shown in the balance sheet. 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. The assessee is also directed to comply with all notices issued by the Ld. CIT(E) and furnish all relevant details for fresh consideration. In view of the above, the appeal filed by the assessee is allowed for statistical purposes only. Printed from counselvise.com ITA No.143/Chny/2025 Digital Security Association of India :- 4 -: 6. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced on 19th day of November, 2025 at Chennai. Sd/- Sd/- (एबी टी. वक ) (ABY. T. Varkey) \u0010ाियक सद / Judicial Member (जगदीश) (Jagadish) लेखा सद /Accountant Member चे\u0010नई/Chennai, \u0013दनांक/Dated: 19th November, 2025. EDN, Sr. P.S आदेश क\u0016 \bितिल\u0019प अ\u001aे\u0019षत/Copy to: 1. अपीलाथ\b/Appellant 2. थ\b/Respondent 3. आयकर आयु\u0010/CIT, Chennai/Madurai/Coimbatore/Salem 4. िवभागीय ितिनिध/DR 5. गाड\u0019 फाईल/GF Printed from counselvise.com "