GNANARATNA CHARITABLE TRUST,CHENNAI V. CIT, EXEMPTIONS, CHENNAI

ITA 554/CHNY/2025

AI Insights

The case involves Gnanaratna Charitable Trust appealing against the orders of the Commissioner of Income Tax (Exemption), Chennai, which rejected their applications for re-registration under section 12A(1)(ac) and for approval under section 80G(5)(iii) of the Income Tax Act, 1961. The Trust had initially been granted registration and approval under the old provisions but failed to file the correct forms under the newly amended provisions. The Tribunal found that the Trust had filed the incorrect forms due to an inadvertent mistake and decided to remand the matters for fresh consideration, allowing the Trust to file the correct applications.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 312868 (ITAT-CHENNAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-04-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: D
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: V. SREENIVASAN
• Assessee Lawyers: VARUN NAHAR
• Keywords: Charitable institution
• Section: 12AA; 12A; 80G

Judgement Text

"आयकर अपीलीय अिधकरण, ’डी’ Ɋायपीठ, चेɄई IN THE INCOME-TAX APPELLATE TRIBUNAL ‘D’ BENCH, CHENNAI ŵी एस.एस. िवʷनेũ रिव, Ɋाियक सद˟ एवं ŵी जगदीश, लेखा सद˟ क े समƗ । Before Shri S.S. Viswanethra Ravi, Judicial Member & Shri Jagadish, Accountant Member आयकर अपील सं./I.T.A. Nos.554 and 555/Chny/2025 Gnanaratna Charitable Trust, C-1, Kottur Villa, 5, Lockstreet, Kotturpuram, Chennai 600 085. [PAN:AABTG9631J] Vs. The Commissioner of Income Tax (Exemption), Chennai. (अपीलाथŎ/Appellant) (ŮȑथŎ/Respondent) अपीलाथŎ की ओर से / Appellant by : Shri Varun Nahar, C.A. ŮȑथŎ की ओर से/Respondent by : Shri AR.V. Sreenivasan, CIT सुनवाई की तारीख/ Date of hearing : 23.04.2025 घोषणा की तारीख /Date of Pronouncement : 30.04.2025 आदेश /O R D E R PER S.S. VISWANETHRA RAVI, JUDICIAL MEMBER: Both the appeals filed by the assessee are directed against separate orders both dated 16.12.2024 passed by the ld. Commissioner of Income Tax (Exemption), Chennai in respect of seeking registration under section 12A(1)(ac) of the Income Tax Act, 1961 [“Act” in short] and seeking approval under section 80G(5)(iii) of the Act. 2. Since issues raised in both the appeals are similar based on the same identical facts, with the consent of both the parties, we proceed to hear the appeals together and pass consolidated order for the sake of convenience. I.T.A. Nos.5554 & 555/Chny/25 2 3. First, we shall take appeal in I.T.A. No. 554/Chny/2025 seeking registration under section 12A(1)(ac) of the Act for adjudication. 4. The ld. AR Shri Varun Nahar, CA submits that the assessee was granted registration under section 12AA of the Act vide order dated 27.02.2019 and drew our attention to page 1 of the paper book. He submits that under new amended provisions, the assessee is required to file Form 10A under section 12A(1)(ac)(i) of the Act for obtaining re- registration, but, however, by inadvertent mistake, Form 10AB under section 12A(1)(ac)(iii) of the Act was filed, which is at page 5 of the paper book. He drew our attention to pages 4 & 5 of the impugned order for non-submission of provisional registration under section 12A of the Act and the ld. CIT(E) rejected the assessee’s application. He prayed to remand the matter to the file of the ld. CIT(E), which enables the assessee to file proper application as required under law in respect of old provisions of the Act. 5. The ld. DR Shri AR.V. Sreenivasan, CIT objected to the same and submits that it is open to the assessee to file new application under old provisions of the Act afresh. I.T.A. Nos.5554 & 555/Chny/25 3 6. Taking into consideration of the submissions of the ld. AR and the ld. DR, after considering the material evidences at page 1 and page 5 of the paper book and findings of the ld. CIT(E) vide his impugned order, in the interest of justice, we deem it proper to remand the matter to the file of the ld. CIT(E) for fresh consideration by considering the facts as discussed in the aforementioned paragraphs and pass order in accordance with law. Thus, the grounds raised by the assessee are allowed for statistical purposes. I.T.A. No. 555/Chny/2025 7. With regard to seeking approval under section 80G of the Act, the ld. AR submits that the assessee was granted approval under section 80G of the Act vide order dated 17.10.2019 and drew our attention to page 41 of the paper book. He submits that the assessee inadvertently filed Form 10AB under section 80G(5)(iii) of the Act while the assessee is required to file Form 10A under section 80G(1) for obtaining approval as per newly amended provisions of the Act which is at page 43 of the paper book. He drew our attention to pages 4 & 5 of the impugned order for non-submission of provisional approval under section 80G of the Act and the ld. CIT(E) rejected the assessee’s application. He prayed to remand the matter to the file of the ld. CIT(E), which enables the assessee to file proper application as required under law in respect of old provisions of I.T.A. Nos.5554 & 555/Chny/25 4 the Act. Taking into consideration of the facts of the case and material available on record in the form of paper book, we deem it proper to remand the matter to the file of the ld. CIT(E) for fresh consideration after considering the facts as discussed above and pass order in accordance with law. Thus, the grounds raised by the assessee are allowed for statistical purposes. 8. In the result, both the appeals filed by the assessee are allowed for statistical purposes. Order pronounced on 30th April, 2025 at Chennai. Sd/- Sd/- (JAGADISH) ACCOUNTANT MEMBER (S.S. VISWANETHRA RAVI) JUDICIAL MEMBER Chennai, Dated, 30.04.2025 Vm/- आदेश की Ůितिलिप अŤेिषत/Copy to: 1. अपीलाथŎ/Appellant, 2.ŮȑथŎ/ Respondent, 3. आयकर आयुƅ/CIT, Chennai/Madurai/Coimbatore/Salem 4. िवभागीय Ůितिनिध/DR & 5. गाडŊ फाईल/GF. "