GATTUBAI JEEVRAJJI GANDHI CHARITABLE TRUST,CHENNAI V. COMMISSIONER OF INCOME-TAX (EXEMPTIONS), CHENNAI, CHENNAI

ITA 1017/CHNY/2025

AI Insights

The case involves Gattubai Jeevrajji Gandhi Charitable Trust, which filed two applications in Form No.10AB seeking approval under clause (iii) of the first proviso to section 80G(5) of the Income-tax Act, 1961. Both applications were rejected by the Commissioner of Income Tax (Exemptions), Chennai, on grounds of non-maintainability and delay in filing, respectively. The trust appealed against these decisions. The tribunal found that the trust was not given a proper opportunity to respond to the show cause notice due to non-receipt of the notice via email, and thus remanded the first application back for fresh consideration.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 705561 (ITAT-CHENNAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-07-2025
• 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: SHIVA SRINIVAS
• Assessee Lawyers: V. BALAJI; C.A
• Keywords: Set aside; Principle of natural justice; Charitable institution
• Section: 119(2)(b); 80G

Judgement Text

" आयकर अपीलीय अधिकरण, ‘बी’ न्यायपीठ, चेन्नई। IN THE INCOME TAX APPELLATE TRIBUNAL ‘B’ BENCH: CHENNAI माननीय श्री मनु क ुमार गिरि, न्यागयक सदस्य एवं माननीय श्री एस.आर.रघुनाथा ,लेखा सदस्य क े समक्ष । BEFORE HON’BLE SHRI MANU KUMAR GIRI, JUDICIAL MEMBER AND HON’BLE SHRI S. R. RAGHUNATHA, ACCOUNTANT MEMBER आयकरअपील सं./ITA Nos.1016 & 1017Chny/2025 Assessment Year:2025-26 Gattubai Jeevrajji Gandhi Charitable Trust, No.263, Velachery Road, East Tambaram, Chennai-600 059. [PAN: AACTG0995L] Vs. The Commissioner of Income Tax (Exemptions), Chennai. (अपीलार्थी/Assessee) (प्रत्यर्थी/Respondent) अपीलार्थी की ओर से/ Assessee by : Mr. V.Balaji, C.A, प्रत्यर्थी की ओर से /Respondent by : Mr.Shiva Srinivas, CIT सुनवाई की तारीख/Date of Hearing : 25.06.2025 घोषणा की तारीख /Date of Pronouncement : 02.07.2025 आदेश / O R D E R PER MANU KUMAR GIRI (Judicial Member) Aforesaid appeals filed by the assessee arises out of the orders of Learned Commissioner of Income Tax (Exemption), Chennai [hereinafter “CIT(E)”] dated 19.08.2024 and 19.02.2025 in rejecting the both applications in Form No.10AB seeking approval under clause (iii) of first proviso to section 80G(5) of the Income- tax Act, 1961 (hereinafter “the Act”). 2 ITA No.1016 & 1017/Chny/2025 2. The assessee has filed first application dated 23.02.2024 in Form No.10AB seeking approval under clause (iii) of first proviso to section 80G(5) of the Income- tax Act, 1961. The Ld. CIT(E) has issued show cause notice on 31.07.2024 as to why the application dated 23.02.2024 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 not maintainable, as the assessee has failed to prove genuineness of the activities of the trust. Now assessee is in appeal before us in ITA N.1017/Chny/2025. 3. The assessee again also filed second application dated 23.02.2024 in Form No.10AB seeking approval under clause (iii) of first proviso to section 80G(5) of the Income-tax Act, 1961. However, the Ld. CIT(E) again rejected the aforesaid application holding that the applicant trust has applied for the approval u/s 80G in Form 10AB only after the expiry of extended due date i.e; 30.06.2024 (wrongly written in order as 30.08.2024) with the delay of 61 days. Hence, application seeking approval u/s 80G cannot be considered for approval as per the provisions of section 80G(5)(iii) of the Act. Now assessee is also in appeal against this order before us in ITA N.1016/Chny/2025. 4. The Ld. Authorized Representative (A.R) of the assessee has submitted that Ld. CIT(E) has rejected the first application on account of assessee’s failure to submit reply to the show cause notice therefore, one more opportunity may be provided to substantiate his case before Ld. CIT(E). In fact, inadvertently, the assessee has not received the aforesaid notice through email. The ld. counsel also prayed that the appeal in ITA No.1017/Chny/2025 may be allowed by set aside to ld.CIT(E) for denovo adjudication and the appeal in ITA No.1016/Chny/2025 may be dismissed as infructuous. 3 ITA No.1016 & 1017/Chny/2025 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 first application dated 23.02.2024 in Form No.10AB seeking approval under clause (iii) of first proviso to section 80G(5) of the Income-tax Act, 1961 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) dated 19.08.2024 and remit the matter back to the file of the Ld. CIT(E) to adjudicate application dated 23.02.2024 in Form No.10AB seeking approval under clause (iii) of first proviso to section 80G(5) of the Income- tax Act, 1961 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 denovo adjudication. In view of the above, the appeal filed by the assessee in ITA No.1017/Chny/2025 is allowed for statistical purposes only. 7. Since, we have allowed the appeal of the assessee in ITA No.1017/Chny/2025, the other appeal in ITA No.1016/Chny/2025 is dismissed as infructuous. We further, direct the assessee to inform/communicate this order to the appropriate authority, if any, before whom application u/s 119(2)(b) of the Act is pending adjudication. 4 ITA No.1016 & 1017/Chny/2025 8. In the result, the appeal filed by the assessee in ITA No.1017/Chny/2025 is allowed for statistical purposes whereas appeal in ITA No.1016/Chny/2025 is dismissed as infructuous. Order pronounced in the open court on 2nd , day of July, 2025 at Chennai. Sd/- Sd/- (एस.आर.रघुनाथा) (मनु क ुमार गिरि) (S. R. RAGHUNATHA) लेखा सदस्य / ACCOUNTANT MEMBER (MANU KUMAR GIRI) न्यागयक सदस्य / JUDICIAL MEMBER चेन्नई Chennai: दिन ांक Dated : 02-07-2025 KB/- आदेश की प्रततललपप अग्रेपषत /Copy to : 1. अपील र्थी/Assessee 2. प्रत्यर्थी/Respondent 3. आयकरआयुक्त/CIT-Chennai/Coimbatore/Madurai/Salem. 4. दिभ गीयप्रदिदनदि/DR 5. ग र्डफ ईल/GF "