CANADIAN BAPTIST INTERNATIONAL MINISTRIES, CHENNAI V. INCOMETAX OFFICER (EXEMPTIONS), CHENNAI

ITA 438/CHNY/2023

AI Insights

The case involves Canadian Baptist International Ministries, a registered charitable trust, which appealed against the denial of deduction under sections 11 and 12 of the Income Tax Act for the assessment year 2012-13. The primary issue was the assessee's failure to demonstrate valid registration under the Act for the impugned year, leading to the denial of deductions by the AO. The Tribunal noted that the assessee had ceased activities in 2013 but had previously been granted similar deductions in earlier assessment years. Considering these factors and the principles of natural justice, the Tribunal decided to set aside the previous order and remand the case for a fresh assessment.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 134372 (ITAT-CHENNAI)
• Duration Of Justice: 2 month(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-07-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Next Hearing Date: 27-06-2023
• Assessment Year: 2012-2013
• Appeal Filed On: 04-04-2023
• Other Referred Cases: AYs 1992-93 and 1993-94
• Laws Referred To: Section 11, Section 12
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Principle of natural justice
• Section: 12; 11

Judgement Text

आयकर अपीलीय अिधकरण “सी” ायपीठ चे ई म । IN THE INCOME TAX APPELLATE TRIBUNAL “C” BENCH, CHENNAI माननीय ी महावीर िसंह, उपा एवं माननीय ी मनोज कु मार अ%वाल ,लेखा सद( के सम । BEFORE HON’BLE SHRI MAHAVIR SINGH, VP AND HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM आयकरअपील सं./ ITA No.438/Chny/2023 (िनधा)रण वष) / As sessment Year: 2012-13) Canadian Baptist International Ministries No.107 (Old No.93) Pantheon Road, Egmore, Chennai-600 008. बनाम/ Vs . ITO (Exemptions) Ward-1, Chennai. थायीलेखासं./जीआइआरसं./PAN/GIR No. A AAT C - 62 39- R (अपीलाथ /Appellant) : ( थ / Respondent) अपीलाथ कीओरसे/ Appellant by : Shri V. Tharish (CA)- Ld.AR थ कीओरसे/Respondent by : Shri P. Sajit Kumar (JCIT)- Ld. DR सुनवाईकीतारीख/Date of Hearing : 28-06-2023 घोषणाकीतारीख /Date of Pronouncement : 04-07-2023 आदेश / O R D E R Manoj Kumar Aggarwal (Accountant Member) 1. The only grievance of the assessee in the captioned appeal is denial of deduction u/s 11 / 12 as applicable to a registered charitable trust. Upon perusal of impugned order, it could be seen that the assessee has failed to attend the appellate proceedings and accordingly, the assessment was confirmed by first appellate authority. The Ld. AO denied the deduction since the assessee could not demonstrate that it had valid registration under the act for impugned year. Aggrieved as aforesaid, the assessee is in further appeal before us. 2 ITA No.438/Chny/2023 2. The Ld. AR submitted that the assessee trust stopped its activities from the year 2013 onwards. The Ld. AR also produced assessment orders for AYs 1992-93 and 1993-94 wherein the impugned deduction has been granted to the assessee. The Ld. AR sought another opportunity to substantiate its case. 3. Quite clearly, the assessee trust is unable to show that it had valid registration under the Act to lay its claim for deduction u/s 11 / 12. However, keeping in view the principle of natural justice and concurring with the submissions of Ld. AR, we deem it fit to grant another opportunity to the assessee to substantiate its case before Ld. AO. Accordingly, impugned order is set-aside and the matter of assessment is restored back to the file of Ld. AO for de novo assessment with a direction to the assessee to substantiate its claim. 4. The appeal stand allowed for statistical purposes. Order pronounced on 4 th July, 2023. Sd/- Sd/- (MAHAVIR SINGH) (MANOJ KUMAR AGGARWAL) उपा56 / VICE PRESIDENT लेखा सद8 / ACCOUNTANT MEMBER चे:ई Chennai; िदनांक Dated :04-07-2023 DS आदेश की Aितिलिप अ %ेिषत/Copy of the Order forwarded to : 1. अपीलाथ /Appellant 2. यथ /Respondent 3. आयकर आय ु त/CIT 4. वभागीय त न ध/DR 5. गाड फाईल/GF