GRV TRUST,COIMBATORE V. CIT, EXEMPTION, CHENNAI

ITA 3147/CHNY/2024

AI Insights

The case involves GRV Trust, which appealed against the order of the CIT (Exemption), Chennai, dated 18.10.2024, rejecting their application for registration under section 12AB of the Income Tax Act, 1961. The rejection was based on the grounds that the assessee did not furnish the requisite details in response to a show cause notice dated 07.10.2024. The assessee argued that they had filed an application seeking additional time to respond, which was not acknowledged by the CIT (Exemption) before rejecting their application. The Tribunal found merit in the assessee's argument and restored the matter for reconsideration.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 469609 (ITAT-CHENNAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-02-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: A. SASIKUMAR
• Assessee Lawyers: N.V.KRISHNAN
• Keywords: Opportunity of being heard

Judgement Text

"आयकर अपीलȣय अͬधकरण, ‘बी’ Ûयायपीठ, चेÛन IN THE INCOME TAX APPELLATE TRIBUNAL ‘B’ BENCH, CHENNAI Įी जॉज[ जॉज[ क े, उपाÚय¢ एवं Įी एस.आर.रघुनाथा, लेखा सदèय क े सम¢ BEFORE SHRI GEORGE GEORGE K, VICE PRESIDENTAND SHRI S.R. RAGHUNATHA, ACCOUNTANT MEMBER आयकर अपील सं./ITA No.: 3147/CHNY/2024 GRV Trust, 336, Avinashi Road, Peelamedu, Coimbatore-641 004. PAN: AABTG-6005-A Vs. The CIT (Exemption), Chennai. (अपीलाथᱮ/Appellant) (ᮧ᭜यथᱮ/Respondent) अपीलाथᱮ कᳱ ओर से/Appellant by : Mr. N.V.Krishnan, Advocate ᮧ᭜यथᱮ कᳱ ओर से/Respondent by : Mr. A.Sasikumar,CIT सुनवाई कᳱ तारीख/Date of Hearing : 18.02.2025 घोषणा कᳱ तारीख/Date of Pronouncement : 19.02.2025 आदेश /O R D E R PER GEORGE GEORGE K, VICE PRESIDENT: This appeal at the instance of the assessee is directed against CIT(Exemption), Chennai, order dated 18.10.2024, rejecting application for registration u/s.12AB of the Income Tax Act, 1961 (hereinafter called ‘the Act’). 2. At the very outset, we notice that CIT(E) has rejected the assessee’s application for registration u/s 12AB of the Act stating that assessee did not file requisite details required to be furnished in pursuance to the show cause notice issued from the Office of the CIT(Exemption) (show cause notice dated 07.10.2024). The Ld.AR - 2 - ITA No.3147//CHNY/2024 submitted that the assessee had filed an application dated 08.10.2024 seeking time to file requisite details sought for in the show cause notice dated 07.10.2024. A copy of acknowledgement for filing adjournment application is placed on record. It was submitted that CIT(E) without taking notice of adjournment application seeking time by two weeks rejected the assessee’s application for registration u/s.12AB of the Act vide impugned order dated 18.11.2024. It was submitted in the interest of justice and equity, the matter may be restored to file of the CIT(E), so that requisite details can be placed before the CIT(E) and the CIT(E) may be directed to consider the same before a decision is taken on merits. 3. The Ld. DR supported the order of the CIT(E). 4. We have heard rival submissions and perused materials on record. The Office of the CIT(E) vide show cause notice dated 07.10.2024 had directed the assessee trust to furnish relevant documents / evidences in support of its claim for registration u/s.12AB of the Act. The assessee on receipt of hearing notice filed a letter dated 08.10.2024 seeking two weeks time to file requisite details. However, CIT(E) without taking notice of adjournment application submitted by the assessee trust passed the impugned - 3 - ITA No.3147//CHNY/2024 order dated 18.10.2024 rejecting application of the assessee for registration u/s.12AB of the Act. In the interest of justice and equity, we restore the matter to the file of CIT(E). We direct the CIT(E) to reconsider the application on merits, after affording reasonable opportunity of being heard to the assessee. The assessee trust is directed to co-operate with the Revenue and shall not seek unnecessary adjournment in the matter. 5. In the result, appeal filed by the assessee is allowed for statistical purposes. Order pronounced in the open court on 19th February, 2025. Sd/- Sd/- (एस.आर. रघुनाथा) (S.R. RAGHUNATHA) लेखा सदèय/ACCOUNTANT MEMBER (जॉज[ जॉज[ क े) (GEORGE GEORGE K) उपाÚय¢ /VICE PRESIDENT चेÛनई/Chennai, Ǒदनांक/Dated, the 19th February, 2025 DS आदेश कȧ ĤǓतͧलͪप अĒेͪषत/Copy to: 1. अपीलाथȸ/Appellant 2. Ĥ×यथȸ/Respondent 3. आयकर आयुÈत /CIT, Chennai 4. ͪवभागीय ĤǓतǓनͬध/DR 5. गाड[ फाईल/GF. "