HEARTS FOR HEARTS,CHENNAI V. CIT, EXEMPTIONS, CHENNAI

ITA 882/CHNY/2025

AI Insights

The case involves 'Hearts for Hearts', a small trust, which appealed against the decision of the Commissioner of Income Tax (Exemptions), Chennai, denying their application for registration under section 12AB of the Income Tax Act, 1961. The primary contention was that the CIT(E) had dismissed their application without a proper hearing, relying solely on electronic notices which the assessee claimed not to have received. The Tribunal found merit in the assessee's argument and decided to set aside the CIT(E)'s order, remanding the matter for a fresh hearing.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 653068 (ITAT-CHENNAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-06-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Matter Remanded
• Court: TRIBUNAL
• Department Lawyers: ANN MARY BABY
• Assessee Lawyers: J. SARAVANAN
• Keywords: Set aside; Opportunity of being heard
• Section: 12A

Judgement Text

" आयकर अपीलीय अधिकरण, ’डी’ न्यायपीठ, चेन्नई। IN THE INCOME TAX APPELLATE TRIBUNAL ‘D’ BENCH: CHENNAI श्री एबी टी. वर्की, न्यायिर्क सदस्य एवं श्री अयिताभ शुक्ला, लेखा सदस्य क े समक्ष BEFORE SHRI ABY T VARKEY, JUDICIAL MEMBER AND SHRI AMITABH SHUKLA, ACCOUNTANT MEMBER आयकर अपील सं./ITA No.882/Chny/2025 Assessment Years: - Hearts for Hearts, No.11, Judge Jambulingam Road, Mylapore, Chennai-600 004. [PAN: AABTH1198K] The Commissioner of Income Tax, (Exemptions), Chennai (अपीलार्थी/Appellant) (प्रत्यर्थी/Respondent) अपीलार्थी की ओर से/ Assessee by : Mr.J.Saravanan, Advocate, प्रत्यर्थी की ओर से /Revenue by : Ms.Ann Mary Baby, CIT सुनवाई की तारीख/Date of Hearing : 04.06.2025 घोषणा की तारीख /Date of Pronouncement : .06.2025 आदेश / O R D E R PER AMITABH SHUKLA, A.M : This appeal is filed by the assessee against the order bearing DIN & Order No.ITBA / EXM / F /EXM45/ 2024-25 / 1070184281(1) dated 07.11.2024 of the Learned Commissioner of Income Tax(Exemptions) [herein after “CIT(E), Chennai. The reference to the word “Act” in this order hereinafter shall mean the Income Tax Act, 1961 as amended from time to time. 2.0 At the outset, the Ld. Counsel for the assessee submitted that the Ld. CIT(E ) has dismissed its application for registration u/s 12A (1) (ac)(iii) of the Act without giving proper opportunity of being heard. It ITA No. 882 /Chny/2025 Page - 2 - of 3 was submitted that denial of the registration u/s 12AB was attributable to the notices issued by the Ld. CIT(E) on Income Tax Portal only. It was urged that appellant assessee is a small trust and one last opportunity be accorded to the assessee to present its case before the Ld. CIT(E) 3.0 Per contra, the Ld. DR argued in favour of order of authorities down below. It was argued that the present electronic environment is so configured that the application gets rejected after non-compliance to three notices of hearing. 4.0 We have heard rival submissions in the light of material available on records. The assesse had applied for permanent registration on 07.05.2024 u/s 12A(1)(ac)(iii) of the Act, which the Ld.CIT(E) denied on the premise of willful non-compliance. The fact of the matter remains that the assesse reportedly never received the departmental notices. We are of the view that ends of justice would be met if the assessee is given an opportunity to present its case before the CIT(E) for consideration of registration u/s 12AB of the Act. Accordingly, the order of Ld.CIT(E) dated 07.11.2024 is set aside with the directions to reconsider the assessee’s application dated 07.05.2024 in Form-10AB for grant of registration u/s 12AB de novo by giving due opportunity of being heard to the assessee. The assesse is directed to make complete and correct compliance towards the notices issued by the Ld.CIT(E) and any non-compliance by the assessee shall be adversely viewed. ITA No. 882 /Chny/2025 Page - 3 - of 3 Accordingly, all the grounds of appeal raised by the assessee is allowed for statistical purposes. 5.0 In the result the appeal is allowed for statistical purpose. Order pronounced on , June-2025 at Chennai. (एबी टी. वर्की) (ABY T VARKEY) न्याधयक सदस्य / Judicial Member (अधमताभ शुक्ला) (AMITABH SHUKLA) लेखा सदस्य /Accountant Member चेन्नई/Chennai, धदनांक/Dated: , June-2025. KB/- आदेश की प्रतितिति अग्रेतिि/Copy to: 1. अिीिार्थी/Appellant 2. प्रत्यर्थी/Respondent 3. आयकर आयुक्त/CIT - 4. तिभागीय प्रतितिति/DR 5. गार्ड फाईि/GF "