L.K. CHARITABLE TRUST,CHENNAI V. CIT, EXEMPTIONS, CHENNAI

ITA 1530/CHNY/2025

AI Insights

The case involves M/s. L K Charitable Trust appealing against the order of the Commissioner of Income Tax (Exemption), Chennai, which rejected their Form No.10AB for seeking registration under section 12A of the Income Tax Act, 1961. The initial rejection was based on the non-response of the assessee to a show-cause notice. The Tribunal noted the absence of an effective service of hearing notice, as it was only uploaded on the e-portal, and not properly communicated to the assessee. The Tribunal, while deprecating the assessee's nonchalant attitude, decided to provide another opportunity for the assessee to present their case.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 708554 (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, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: V. SREENIVASAN
• Assessee Lawyers: S. SEETHARAMAN
• Keywords: Charitable institution

Judgement Text

"आयकर अपीलȣय अͬधकरण, ‘डी’ Ûयायपीठ, चेÛनई IN THE INCOME TAX APPELLATE TRIBUNAL ‘D’ BENCH, CHENNAI Įी जॉज[ जॉज[ क े, उपाÚय¢ एवं Įी एस.आर.रघुनाथा, लेखा सदèय क े सम¢ BEFORE SHRI GEORGE GEORGE K, VICE PRESIDENTAND SHRI S.R. RAGHUNATHA, ACCOUNTANT MEMBER आयकर अपील सं./ITA No.: 1530/CHNY/2025 M/s. L K Charitable Trust, No.F3, 1st Floor, Mookambika Complex, No.4, Lady Desikachary Road, Mylapore, Chennai – 600 004. PAN: AABTL 0739L Vs. The Commissioner of Income Tax (Exemption), Chennai. (अपीलाथᱮ/Appellant) (ᮧ᭜यथᱮ/Respondent) अपीलाथᱮ कᳱ ओर से/Appellant by : Shri S. Seetharaman, CA ᮧ᭜यथᱮ कᳱ ओर से/Respondent by : Shri AR. V. Sreenivasan, CIT सुनवाई कᳱ तारीख/Date of Hearing : 15.07.2025 घोषणा कᳱ तारीख/Date of Pronouncement : 15.07.2025 आदेश/ O R D E R PER GEORGE GEORGE K, VICE PRESIDENT: This appeal filed by the assessee is directed against the order of CIT(Exemption), Chennai dated 20.03.2025, rejecting Form No.10AB filed for seeking registration u/s.12A of the Income Tax Act, 1961 (hereinafter the ‘Act’). ITA No.1530/Chny/2025 :- 2 -: 2. At the very outset, we notice that the CIT(E) has passed ex-parte order. The reason for deciding the appeal ex-parte was that the assessee did not reply to the show-cause notice issued from the office of the CIT(E). The Ld.AR submitted that the assessee is a trust and has placed on record the details of activities of the assessee’s trust. The Ld.AR further submitted that the show-cause notice was issued on 13.03.2025 asking to submit its reply on or before 17.03.2025, which was missed by oversight. It was submitted that in the interest of justice and equity, one more opportunity may be provided to the assessee to represent its case before the CIT(E). 3. The Ld.DR supported the order of CIT(E). 4. We have heard rival submissions and perused the material on record. The Office of the CIT(E) had issued the show-cause notice by e-mode through ITBA/e-filing portal directing the assessee to file certain details/documents. Since there was no response by the assessee to the show-cause notice issued, the CIT(E) passed ex-parte order. It is the claim of the assessee that there was no effective service of hearing notice since it is only uploaded on the e-portal. We strongly deprecate the nonchalant ITA No.1530/Chny/2025 :- 3 -: attitude of the assessee. However, in the interest of justice and equity, we are of the view that assessee ought to be provided with one more opportunity to represent its case and accordingly the issue is restored to the files of the CIT(E). The assessee is directed to co-operate with the Revenue and shall not seek unnecessary adjournment. It is ordered accordingly. 5. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced in the open court on 15th July, 2025 at Chennai. Sd/- Sd/- (एस.आर. रघुनाथा) (S.R. RAGHUNATHA) लेखा सदèय/ACCOUNTANT MEMBER (जॉज[ जॉज[ क े) (GEORGE GEORGE K) उपाÚय¢ /VICE PRESIDENT चे᳖ई/Chennai, ᳰदनांक/Dated, the 15th July, 2025 RSR आदेश कȧ ĤǓतͧलͪप अĒेͪषत/Copy to: 1. अपीलाथȸ/Appellant 2. Ĥ×यथȸ/Respondent 3. आयकर आयुÈत /CIT, Chennai 4. ͪवभागीय ĤǓतǓनͬध/DR 5. गाड[ फाईल/GF. "