DINDIGUL BUILDERS TRUST,DINDIGUL V. CIT, EXEMPTIONS, CHENNAI

ITA 693/CHNY/2025

AI Insights

The case involves Dindigul Builders Trust appealing against the decision of the Learned Commissioner of Income Tax (Exemption), Chennai, which had rejected their application in Form No.10AB seeking approval under section 80G(5)(iii) of the Income-tax Act, 1961. The rejection was primarily due to the assessee's failure to respond to a show cause notice, which they claimed not to have received. The Tribunal, considering the principles of natural justice, decided to remit the case back to the CIT (Exemption) for a fresh hearing, allowing the assessee another opportunity to substantiate their application.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 711447 (ITAT-CHENNAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-07-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Assessment Year: misc
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: SHIVA SRINIVAS
• Assessee Lawyers: J. SARAVANAN
• Keywords: Set aside; Principle of natural justice

Judgement Text

"आयकर अपीलीय अिधकरण, ‘बी’ ᭠यायपीठ, चे᳖ई। IN THE INCOME TAX APPELLATE TRIBUNAL ‘B’ BENCH: CHENNAI ŵी मनु क ुमार िगįर, Ɋाियक सद˟ एवं ŵी एस. आर. रघुनाथा, लेखा सद˟ क े समƗ BEFORE SHRI MANU KUMAR GIRI, JUDICIAL MEMBER AND SHRI S.R.RAGHUNATHA, ACCOUNTANT MEMBER आयकर अपील सं./ITA No.693/Chny/2025 िनधाŊरण वषŊ/Assessment Year: - Dindigul Builders Trust, 52, Spencer Compound, Dindigul – 624 001. v. The CIT (Exemption), Chennai. [PAN: AACTD 4966 G] (अपीलाथᱮ/Appellant) (ᮧ᭜यथᱮ/Respondent) अपीलाथᱮ कᳱ ओर से/ Appellant by : Mr.J. Saravanan, Advocate ᮧ᭜यथᱮ कᳱ ओर से /Respondent by : Mr.Shiva Srinivas, CIT सुनवाईकᳱतारीख/Date of Hearing : 24.06.2025 घोषणाकᳱतारीख /Date of Pronouncement : 21.07.2025 आदेश / O R D E R PER MANU KUMAR GIRI, JM: This is an appeal preferred by the assessee against the order of the Learned Commissioner of Income Tax (Exemption), (in short ‘the Ld.CIT(E)’), Chennai, dated 16.03.2024 in rejecting the application in Form No.10AB under clause (iii) of first proviso to section 80G(5) seeking approval u/s 80G(5)(iii) of the Income-tax Act, 1961 (hereinafter “the Act”). Printed from counselvise.com ITA No.693/Chny/2025 (AY -) Dindigul Builders Trust :: 2 :: 2. The registry has noted delay of ‘279’ days in filing the appeal. Considering the period of delay and reasons explained in the condonation petition, we condone the delay and admit the appeal for adjudication. 3. The assessee has filed an application dated 01.09.2023 in Form No.10AB under Rule 11AA of the IT Rules, 1962 seeking approval u/s.80G(5)(iii) of the Act. The Ld. CIT(E) has issued show cause notice on 02.01.2024 as to why the application dated 01.09.2023 in Form 10AB should not be rejected. The assessee has not received the aforesaid notice through email, however the Ld. CIT(E) rejected the application, as the assessee has failed to submit an explanation in response to the show cause notice holding it activities of the trust genuine. The ld. CIT(E) held as under: 4.1. It is an admitted fact that the applicant has submitted that it has commenced its activities on 02.08.2016. Further, during the present proceedings, the applicant/assessee has submitted copies of its accounts for FY 2020-21, 2021-22 and 2022-23. The above said facts clearly prove that the activities of the applicant/assessee have commenced long back. Even going by its submissions, the activities of the applicant/assessee has commenced on 02.08.2016 and the present application filed in Form No.10AB u/s 80G(5)(iii) of the Act has not been filed within the time limit prescribed therein and therefore the same is liable to be rejected. 4. The Ld. Authorized Representative (A.R) of the assessee has submitted that Ld. CIT(E) has rejected the application without assessee Printed from counselvise.com ITA No.693/Chny/2025 (AY -) Dindigul Builders Trust :: 3 :: submitting reply to the show cause notice therefore, one more opportunity may be provided to substantiate his case before Ld. CIT(E). 5. The Ld. Departmental Representative (DR), on the other hand, has relied on the orders of the Ld. CIT(E) . 6. We have heard the rival contentions, perused the materials available on record. On perusal of the order of Ld. CIT(E), we find that the Ld. CIT(E) has rejected the application in Form No.10AB seeking approval u/s.80G(5)(iii) of the Act as the assessee has failed to furnish any explanation of the show cause notice. The Ld. A.R has submitted that the Ld. CIT(E) has rejected the application without providing an opportunity to the assessee as the assessee has not received any notice through email and, therefore it is requested that the case may be remanded back to the Ld. CIT(E) for fresh adjudication. We are of the opinion that keeping in view the principles of natural justice, the assessee be provided with another opportunity of hearing to substantiate his case before the Ld. CIT(E). Accordingly, we set aside the order passed by the Ld. CIT(E) and remit the matter back to the file of the Ld. CIT(E) to adjudicate this issue afresh in accordance with law. We also direct the assessee to appear before the Ld. CIT(E) on the date of hearing without fail and furnish complete details for his 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.693/Chny/2025 (AY -) Dindigul Builders Trust :: 4 :: 7. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced on the 21st day of July, 2025, in Chennai. Sd/- (एस. आर. रघुनाथा) (S.R.RAGHUNATHA) लेखा सद᭭य/ACCOUNTANT MEMBER Sd/- (मनु क ुमार िगįर) (MANU KUMAR GIRI) ᭠याियक सद᭭य/JUDICIAL MEMBER चे᳖ई/Chennai, ᳰदनांक/Dated: 21st July, 2025. TLN, Sr.PS 1. अपीलाथŎ/Appellant 2. ŮȑथŎ/Respondent 3. आयकरआयुƅ/CIT, Chennai / Madurai / Salem / Coimbatore. 4. िवभागीयŮितिनिध/DR 5. गाडŊफाईल/GF Printed from counselvise.com "