Murugan Chettiar Shanmugam Charitable Trust, Tirupur V. CIT(Exemptions), Chennai

ITA 73/CHNY/2021

• Counselvise Citation: [2022] 106 COUNSELVISE.COM (IT) 5186 (ITAT-CHENNAI)
• Duration Of Justice: 1 year(s) 2 month(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-06-2022
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2020-2021
• Appeal Filed On: 22-03-2021
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: SOORAJ
• Keywords: Charitable institution; Opportunity of being heard; Set aside
• Section: 12AA

Judgement Text

आयकर अपीलीय अिधकरण, ‘सी’ ᭠यायपीठ, चे᳖ई IN THE INCOME TAX APPELLATE TRIBUNAL ‘C’ BENCH, CHENNAI Įी महावीर ͧसंह, उपाÚय¢ एवं ᮰ी जी. मंजुनाथ, लेखा सद᭭य के समᭃ BEFORE SHRI MAHAVIR SINGH, VICE PRESIDENTAND SHRI G. MANJUNATHA, ACCOUNTANT MEMBER आयकर अपील सं./ITA No.: 73/CHNY/2021 M/s. Murugan Chettiar Shanmugam Charitable Trust, (Formerly known as Thangam Memorial Trust), New No.424, Old No.484, Kamaraj Road, Tirupur – 641 604. PAN: AACTT 0499E v. The CIT (Exemption), Income Tax Office, Chennai. (अपीलाथᱮ/Appellant) (ᮧ᭜यथᱮ/Respondent) अपीलाथᱮ कᳱ ओर से/Appellant by : Shri Sooraj, Advocate ᮧ᭜यथᱮ कᳱ ओर से/Respondent by : Shri M.Rajan, CIT स ु नवाई कȧ तारȣख/Date of Hearing : 21.06.2022 घोषणा कȧ तारȣख/Date of Pronouncement : 21.06.2022 आदेश /O R D E R PER MAHAVIR SINGH, VP: This appeal by the assessee is arising out of the order of Commissioner of Income Tax (Exemption), Chennai dated 01.02.2021 rejecting application for registration u/s.12AA(1)(b)(ii) of the Income Tax Act, 1961 (hereinafter the ‘Act’). 2 I.T.A. No.73/Chny/2021 2. At the outset, it is stated by ld.counsel for the assessee that the CIT(Exemption) rejected application for registration of trust filed by assessee u/s.12AA of the Act, in Form No.10A dated 29.07.2020 without providing opportunity of being heard and moreover, without deliberating on merits just simpliciter on account of non-appearance of the assessee. The relevant finding given in para 4 & 5 of CIT(Exemption) order reads as under:- “4. It is clear from the above that the assessee failed to comply with any of the notices sent, in spite of several reasonable opportunities afforded. In the light of the above facts, it appears that the applicant trust/society is not interested in getting itself registered u/s.12AA of the I.T. Act. For want of the necessary particulars the above referred application filed by the applicant could not be processed as per the provisions of sec. 12AA of the I.T. Act which is getting barred by limitation on 31-03-2021. 5. As the assessee has failed to fulfill the statutory requirements inspite of repeated opportunities, its application seeking registration u/s.12AA of the I.T. Act is rejected.” 3. When these facts were confronted to ld. senior DR, he could not controvert the above facts that the order of CIT(Exemption) is non-speaking. After hearing rival contentions and going through the order of CIT(Exemption), we noted that the order of CIT(Exemption) on all facet is non-speaking and hence, we set aside the order and remand the matter back to his file for registration of trust u/s.12AA of the Act, after verifying all the facts as per law. The order of 3 I.T.A. No.73/Chny/2021 CIT(Exemption) is set-aside and appeal of the assessee is allowed for statistical purposes. 4. In the result, the appeal of the assessee is allowed for statistical purpose. Order pronounced in the open court on 21 st June, 2022 at Chennai. Sd/- Sd/- (जी. मंजुनाथ) (G. MANJUNATHA) लेखा सद᭭य /ACCOUNTANT MEMBER (महावीर ᳲसह ) (MAHAVIR SINGH) उपा᭟यᭃ /VICE PRESIDENT चे᳖ई/Chennai, ᳰदनांक/Dated, the 21 st June, 2022 RSR आदेश कᳱ ᮧितिलिप अᮕेिषत/Copy to: 1. अपीलाथᱮ/Appellant 2. ᮧ᭜यथᱮ/Respondent 3. आयकर आयुᲦ (अपील)/CIT(A) 4. आयकर आयुᲦ /CIT 5. िवभागीय ᮧितिनिध/DR 6. गाडᭅ फाईल/GF.