M/S. AHIMSA WALK,CHENNAI V. CIT, EXEMPTIONS, CHENNAI

ITA 830/CHNY/2025

AI Insights

The case involves M/s. Ahimsa Walk, a trust comprising senior citizens conducting a monthly voluntary walk to protect Jain heritage sites, who appealed against the decision of the Commissioner of Income Tax (Exemptions), Chennai, which rejected their application for registration under section 12AB without providing a reasonable opportunity of being heard. The Tribunal found that the assessee was not given a fair chance to present their case, as they claimed not to have received any departmental notices regarding the rejection. The Tribunal's decision to set aside the CIT(E)'s order and remand the matter for reconsideration was based on the principles of natural justice, emphasizing the need for a fair hearing.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 632991 (ITAT-CHENNAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-06-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: G.NANDHA KUMAR
• Keywords: Set aside; Opportunity of being heard; Sale consideration of property below Jantri Value

Judgement Text

"आयकर अपीलीय अधिकरण, ’डी’ न्यायपीठ, चेन्नई। IN THE INCOME TAX APPELLATE TRIBUNAL ‘C’ BENCH: CHENNAI श्री एबी टी. वर्की, न्यायिर्क सदस्य एवं श्री अयिताभ शुक्ला, लेखा सदस्य क े समक्ष BEFORE SHRI ABY T VARKEY, JUDICIAL MEMBER AND SHRI AMITABH SHUKLA, ACCOUNTANT MEMBER आयकर अपील सं./ITA No.830/Chny/2025 Assessment Years: - M/s.Ahimsa Walk, No.2/1, Vinayakar Koil Street, Sastri Nagar, Saidapet, Chennai-600 015. [PAN: AAEAA8950C] The Commissioner of Income Tax (Exemptions) Chennai (अपीलार्थी/Appellant) (प्रत्यर्थी/Respondent) अपीलार्थी की ओर से/ Assesseee by : Shri D.Segaran, Advocate प्रत्यर्थी की ओर से /Revenue by : Shri G.Nandha Kumar, CIT सुनवाई की तारीख/Date of Hearing : 04.06.2025 घोषणा की तारीख /Date of Pronouncement : 13.06.2025 आदेश / O R D E R PER AMITABH SHUKLA, A.M : This appeal is filed by the assessee against the order bearing DIN & Order No.ITBA / EXM / F / EXM45 / 2024-25 / 1074360556(1) dated 11.03.2025 of the Learned Commissioner of Income Tax (Exemptions) [herein after “CIT(E), Chennai. The reference to the word “Act” in this order hereinafter shall mean the Income Tax Act, 1961 as amended from time to time. 2.0 At the outset, the Ld. Counsel for the assessee informed that the Ld.CIT(E) has rejected its request for grant of registration u/s 12AB in Form 10AB, without affording it reasonable opportunity of being heard. The Ld.Counsel informed that the trust comprises a group of senior ITA No. 830/Chny/2025 Page - 2 - of 3 citizens who are conducting a monthly voluntary walk movement “ahimsa walk” to protect Jain heritage sights, monuments etc. The Ld. Counsel drew our attention to an affidavit filed by President of trust stating that renewal application was filed online on 13.09.2024 in Form-10AB seeking registration u/s 12AB. It has been deposed that no notice was served to the society either on its postal address or on the email ID available on Income Tax Portal. It was submitted that consequently the impugned rejection letter has come as a shock to the trust. The Ld. Counsel accordingly requested that the matter be remitted back to the Ld.CIT(E) for readjudication after giving due opportunity of being heard to the assessee. 3.0 Per contra, the Ld.DR relied upon the order of lower authorities. It was stated that the Ld.CIT(E ) has given due opportunity. Request was made to impost cost upon the assessee for the non-compliance for wasting the precious time of courts. 4.0 We have considered the rival arguments on the case in the light of material available on records. The assessee had applied for permanent registration which the Ld.CIT(E) denied on the premise of willful non-compliance. The fact of the matter remains that the assessee claims that it never received the departmental notices. We are of the view that ends of justice would be met if the assessee is given an opportunity to present its case before the CIT(E) for consideration of ITA No. 830/Chny/2025 Page - 3 - of 3 registration u/s 12AB of the Act. Accordingly, the order of Ld.CIT(E) dated 11.03.2025 is set aside with the directions to reconsider the assessee’s application dated 13.09.2024 in Form-10AB for grant of registration u/s 12AB. The assessee is directed to make complete and correct compliances towards the notices issued by the Ld.CIT(E) and Ld.CIT(E) to hear the assessee and pass order in accordance with law. This order is however subject to payment of cost of Rs.10,000/- (Ten thousand only) by the assessee to the Tamil Nadu State Legal Services Authority at Hon’ble High Court of Madras within 30 days of the receipt of this order. Accordingly, all the grounds of appeal raised by the assessee are allowed for statistical purposes. 5.0 In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced on 13th , June-2025 at Chennai. Sd/- (एबी टी. वर्की) (ABY T VARKEY) न्याधयक सदस्य / Judicial Member Sd/- (अधमताभ शुक्ला) (AMITABH SHUKLA) लेखा सदस्य /Accountant Member चेन्नई/Chennai, धदनांक/Dated: 13th , June-2025. KB/- आदेश की प्रतितिति अग्रेतिि/Copy to: 1. अिीिार्थी/Appellant 2. प्रत्यर्थी/Respondent 3. आयकर आयुक्त/CIT - 4. तिभागीय प्रतितिति/DR 5. गार्ड फाईि/GF "