KARAIKUDI MUSLIM WELFARE TRUST,SIVAGANGAI V. CIT (EXEMPTIONS), CHENNAI

ITA 2869/CHNY/2024

AI Insights

The case involves the Karaikudi Muslim Welfare Trust, which appealed against the order of the Commissioner of Income Tax (Exemptions), Chennai, rejecting their application for 80G exemption due to non-response to requests for documentation. The Tribunal noted the delay in filing the appeal but condoned it based on the affidavit of the Managing Trustee, who was not familiar with digital operations due to his age. The Tribunal decided to remand the case back to the CIT(E) for a fresh hearing, emphasizing the need for the assessee to be given another opportunity to present their case adequately.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 472418 (ITAT-CHENNAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-01-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: B
• Assessment Year: 2024-2025
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: M. RAJAN; IRS
• Assessee Lawyers: M.RAMASAMY
• Keywords: Set aside
• Section: 12AA; 80G

Judgement Text

" आयकर अपीलीय अिधकरण ‘बी’’ Ɋायपीठ चेɄई मŐ। IN THE INCOME TAX APPELLATE TRIBUNAL ‘B’ BENCH, CHENNAI माननीय ŵी मनु क ुमार िगįर, Ɋाियक सद˟ एवं माननीय ŵी जगदीश, लेखा सद˟ क े समƗ। BEFORE HON’BLE SHRI MANU KUMAR GIRI, JUDICIAL MEMBER AND HON’BLE SHRI JAGADISH, ACCOUNTANT MEMBER आयकरअपील सं./ ITA No.2869/Chny/2024 Karaikudi Muslim Welfare Trust, 1A, KF Towers, Opp to BSNL Office, Netaji Road, Near Bus Stand, Karaikudi, Sivagangai Dist. 630 003. [PAN: AACTK 9775A] Vs. The Commissioner of Income Tax, (Exemptions) Chennai. (अपीलाथȸ/Appellant) (Ĥ×यथȸ/Respondent) अपीलाथȸ कȧ ओर से/ Appellant by : Shri. M. Ramasamy, C.A., Ĥ×यथȸ कȧ ओर से /Respondent by : Shri. M. Rajan, IRS, CIT. सुनवाई कȧ तारȣख/Date of Hearing : 22.01.2025 घोषणा कȧ तारȣख /Date of Pronouncement : 27.01.2025 आदेश / O R D E R MANU KUMAR GIRI (Judicial Member) This appeal preferred by the appellant / assessee is against the impugned order dated 21.08.2024 passed by the ld. Commissioner of Income Tax(Exemption), Chennai in Application No.CIT (Exemption), Chennai /2024-25 /12AA /11107 vide DIN & Notice No.ITBA /EXM/F /EXM45/2024-25/1067838759(1). 2. The registry has noted delay of 08 days in filing the appeal. Considering the period of delay and reasons stated in condonation petition alongwith affidavit by the Managing Trustee of the Assessee, we condone the delay and admit the appeal for adjudication. 2 ITA No.2869/Chny/2024 3. Brief facts are as under: The assessee trust applied for the registration u/s 12AA of the Income Tax Act, 1961 (‘Act’ in short) on 18.03.2024 and provisional registration was granted on 01.04.2024. The assessee also applied for the section 80G Exemption before the ld.CIT(E), Chennai by filing Form No.10AB on 18.03.2024. Thereafter, the ld.CIT(E) vide letter dated 12.07.2024 through e-filing portal requested the assessee to furnish the relevant documents / details and its clarifications either by uploading online in the e-filing portal or by post, on or before 22.07.2024. However, no response from the applicant to letter dated 12.07.2024 or notice dated 29.07.2024. Hence, having no choice, the ld.CIT(E) rejected the application as not maintainable. Assessee is in further appeal before us. 4. At the outset, Ld.AR for the appellant submitted that the Managing trustee is 75 yrs old and is not familiar with the online mails and digital operation etc. The Ld.AR for the appellant prayed that if an adequate opportunity of hearing is given before ld.CIT(E), assessee will file requisite details called for and prosecute the application properly. Ld.CIT-DR relied upon the order of ld.CIT(E) and prayed for dismissal of appeal. 5. We have gone through the orders of lower authorities and submissions addressed by the parties before us. We are of the considered view that in the interest of justice assessee should be given one more opportunity before ld.CIT(E) to prosecute the application his case. The ld.AR for the assessee also filed the below mentioned undertaking as under: To The Hon'ble Members, B-Bench, Income Tax Appellate Tribunal, 3 ITA No.2869/Chny/2024 Rajaji Nagar, Chennai-90. Respected Sirs, Sub: Karaikudi Muslim Welfare Trust/ PAN: AACTK9775A/ Appeal No. ITA2869/CHNY/2024. We wish to state that the above-mentioned appeal was posted for hearing today before your bench. We argued the appeal and requested you to give one more opportunity to appear before the learned CIT in connection with grant of 80G exemption. You instructed us to file an undertaking to appear before learned CIT and submit the required documents before him to enable him to sanction 80G exemption on merits of the case. As a compliance we hereby undertake to appear before the learned CIT on the date fixed by him and submit all the details and particulars required by him for 80G exemption. We wish to state that we have already filed Vakalath (Power of Attorney) with your office in connection with the appeal before you sirs. Yours Faithfully For M. Ramasamy & Co, Chartered Accountants, M. Ramasamy. Senior Partner. Therefore, in the light of above undertaking we set aside this appeal to the file of ld.CIT(E) to hear the application afresh after providing proper opportunity of hearing to the assessee. The assessee is directed to substantiate its case forthwith without any fail, failing which Ld. CIT(E) shall be at liberty to proceed with the disposal of the application as per law. 6. In the result, appeal filed by the assessee is allowed for statistical purpose. Order pronounced in the open court on 27th January, 2025 at Chennai. Sd/- (जगदीश) (JAGADISH) लेखा सद˟ / ACCOUNTANT MEMBER Sd/- (मनु क ुमार िगįर) (MANU KUMAR GIRI) Ɋाियक सद˟ / JUDICIAL MEMBER चेɄई Chennai: िदनांक Dated :27-01-2025 KV आदेश कȧ ĤǓतͧलͪप अĒेͪषत /Copy to : 1. अपीलाथŎ/Appellant 2. ŮȑथŎ/Respondent 3.आयकरआयुƅ/CIT,Chennai/ Coimbatore /Madurai/Salem. 4. िवभागीयŮितिनिध/DR 5. गाडŊफाईल/GF 4 ITA No.2869/Chny/2024 "