INSTITUTE VOLUNTAS DEI,MADURAI V. CIT, EXEMPTIONS, CHENNAI

ITA 1002/CHNY/2025

AI Insights

The case involves the Institute Voluntas Dei, a religious and charitable trust, which appealed against the order of the Commissioner of Income Tax (Exemptions), Chennai, rejecting their application for registration under section 12AB of the Income Tax Act due to non-compliance with notices. The tribunal found that the assessee had a reasonable cause for the delay in filing the appeal and admitted the appeal for adjudication. The tribunal noted that the CIT(E) had issued notices through the e-filing/ITBA portal, and the assessee's non-participation led to an ex-parte order. Emphasizing the principles of natural justice, the tribunal decided to give the assessee another opportunity to comply and respond to the notices.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 708549 (ITAT-CHENNAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-07-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Assessment Year: misc
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: E.PAVUNA SUNDARI; C.I.T
• Assessee Lawyers: T.VASUDEVAN
• Keywords: Condonation of delay; Set aside; Reasonable cause; Principle of natural justice; Charitable institution

Judgement Text

" आयकर अपीलीय अिधकरण, ‘ए’ Ɋायपीठ, चेɄई IN THE INCOME TAX APPELLATE TRIBUNAL ‘A’ BENCH, CHENNAI ŵी जॉजŊ जॉजŊ क े, उपाȯƗ एवं ŵी एस.आर.रघुनाथा, लेखा सद˟ क े समƗ BEFORE SHRI GEORGE GEORGE K, VICE PRESIDENT AND SHRI S.R. RAGHUNATHA, ACCOUNTANT MEMBER आयकर अपील सं./ITA No.:1002/Chny/2025 Institute Voluntas Dei, 2/462, IVD Seminary, LKB Nagar, Sakkimangalam, Elamanur Post, Madurai – 625 201. vs. CIT (Exemptions), Chennai. [PAN:AABAI-5537-J] (अपीलाथŎ/Appellant) (ŮȑथŎ/Respondent) अपीलाथŎ की ओर से/Appellant by : Shri. T. Vasudevan, Advocate ŮȑथŎ की ओर से/Respondent by : Ms. E. Pavuna Sundari, C.I.T. सुनवाई की तारीख/Date of Hearing : 18.06.2025 घोषणा की तारीख/Date of Pronouncement : 15.07.2025 आदेश /O R D E R PER S. R. RAGHUNATHA, AM : This appeal filed by the assessee is directed against the order passed by the learned Commissioner of Income Tax (Exemption), Chennai, dated 17.05.2023. 2. At the outset, we find that there is a delay of 616 days in appeal filed by the assessee, for which the assessee has filed an affidavit along with petition for condonation of delay in filing of the appeal stating the reasons for delay, wherein, it is submitted that the assessee could not respond to :-2-: ITA. No:1002/Chny/2025 the hearing notices on account of the reason that it had not seen the portal and also the affairs of the petition are managed by a group of volunteers who did not happen to monitor the hearing notices and the order posted in the postal. Hence, there was a delay in filing the appeal by the assessee. After considering the Affidavit filed by the assessee and also hearing both the parties, we find that there is a reasonable cause for the assessee in not filing appeal on or before the due date prescribed under the law and thus, in the interests of justice, we condone delay in filing of appeal and admit the appeal filed by the assessee for adjudication. 3. The assessee is a religious and Charitable trust obtained the provisional registration u/s.12AB of the Act. The assessee had filed its application seeking registration u/s.12AB of the Act, vide application in Form 10AB dated 07.11.2022 u/s.12A(1)(ac)(iii) of the Act. The ld.CIT(E) has rejected the application for non-compliance due to non-participation of the assessee in further proceedings by passing an order in Form 10AD dated 17.05.2023. Hence, the assessee prayed for an opportunity of hearing before the Ld.CIT(E). 4. The ld.DR relied on the impugned order and submitted that the ld.CIT(E) had given sufficient opportunity and hence prayed for confirming the same. :-3-: ITA. No:1002/Chny/2025 5. We have heard both the parties, perused the record and impugned orders. It is an undisputed fact on record that the notices were issued by the ld.CIT(E) on the e-filing/ITBA portal. It is a matter of admitted fact that the assessee had filed an application on 07.11.2022 u/s.12A(1)(ac)(iii) of the Act, in Form No.10AB seeking registration u/s.12AB before the ld.CIT(E), Chennai. However, the ld.CIT(E) passed the order in Form 10AD rejecting registration u/s.12A(1)(ac)(iii) of the Act filed in Form 10AB due to non-compliance of the notices as per the impugned order dated 17.05.2023. 6. We find that the Ld.CIT(E) rejected the application by passing an exparte order due to non-participation of the assessee and hence the assessee needs to be given one more opportunity in the interest of natural justice. Therefore, keeping in mind the principles of natural justice and fair play we set aside the order of ld.CIT(E) and restore the application filed u/s.12A(1)(ac)(iii) of the Act, in Form No. 10AB for seeking registration u/s.12AB of the Act, back to the file of the Ld.CIT(E) with a direction to send notices on the assessee afresh through registered email ID, e-portal or as per provisions of the Act and pass speaking order after giving adequate opportunity to the assessee as per law. Needless to say, the assessee should be diligent in responding to the notices and furnish all the required documents during the proceedings without seeking unnecessary adjournments and providing correct address and email ID. Thus, the :-4-: ITA. No:1002/Chny/2025 matter is restored to the CIT(E), Chennai. In case the assessee fail to appear then, no lenient view will be taken by the ld.CIT(E). 7. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced in the court on 15th July, 2025 at Chennai. Sd/- Sd/- (जॉजŊ जॉजŊ क े) (GEORGE GEORGE K) उपाȯƗ /VICE PRESIDENT (एस. आर. रघुनाथा) (S. R. RAGHUNATHA) लेखा सद˟/ACCOUNTANT MEMBER चेɄई/Chennai, िदनांक/Dated, the 15th July, 2025 SP आदेश की Ůितिलिप अŤेिषत/Copy to: 1. अपीलाथŎ/Appellant 2. ŮȑथŎ/Respondent 3.आयकर आयुƅ/CIT– Chennai/Coimbatore/Madurai/Salem 4. िवभागीय Ůितिनिध/DR 5. गाडŊ फाईल/GF "