M/S. SHRI SATHANGUDI ANGALA PARAMASWARI AMMAN SEVA TRUST,MADURAI V. CIT, EXEMPTIONS, CHENNAI

ITA 626/CHNY/2025

AI Insights

The case involves M/s. Shri Sathangudi Angala Paramaswari Amman Seva Trust, which appealed against the decision of the Commissioner of Income Tax (Exemptions), Chennai, who had rejected their application for registration under section 12AB of the Income-tax Act, 1961. The rejection was based on the trust's failure to comply with notices regarding its activities. The trust argued that it was unaware of how to use the income tax portal to respond to these notices. The Tribunal found merit in the trust's request for another opportunity to present its case, emphasizing the principles of natural justice and adequate opportunity.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 312886 (ITAT-CHENNAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-04-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Assessment Year: misc
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: V SREENIVASAN
• Assessee Lawyers: JHARNA B. HARILAL; C.A
• Keywords: Set aside; Opportunity of being heard; Principle of natural justice

Judgement Text

"आयकर अपीलीय अिधकरण, ‘डी’ \u0011ा यपीठ, चे\u0016ई। IN THE INCOME TAX APPELLATE TRIBUNAL ‘D’ BENCH: CHENNAI \u0019ी यस यस िव ने रिव, \u0011ा ियक सद एवं \u0019ी जगदीश, लेखा सद क े सम( BEFORE SHRI SS VISWANETHRA RAVI, JUDICIAL MEMBER AND SHRI JAGADISH, ACCOUNTANT MEMBER आयकर अपील सं./ITA No.626/Chny/2025 M/s. Shri Sathangudi Angala Paramaswari Amman Seva Trust, No.2B, PCM Nagar, Thirumangalam, Madurai – 625 706 Vs. The Commissioner of Income Tax (Exemptions), Chennai. [PAN: AATTS 4591D] (अपीलाथ\u0007/Appellant) (\b यथ\u0007/Respondent) अपीला थ9 की ओर से/ Appellant by : Ms. Jharna B. Harilal, C.A ;<थ9 की ओर से /Respondent by : Shri A.R.V Sreenivasan, CIT सुनवा ई की ता रीख/Date of Hearing : 23.04.2025 घोषणा की ता रीख /Date of Pronouncement : 30.04.2025 आदेश / O R D E R PER JAGADISH, A.M : Aforesaid appeal filed by the assessee arises out of the order of Learned Commissioner of Income Tax (Exemption), Chennai [hereinafter “CIT(A)”] dated 15.04.2024. 2. There is a delay of 243 days in filing the appeal by the assessee. The assessee has filed condonation petition/affidavit stating the ITA No.626/Chny/2025 :- 2 -: reasons for delay in filing the appeal. We have considered the petition/affidavit of delay in filing the appeal and satisfied that there was sufficient cause for not filing the appeal within the prescribed time limit. Hence, the delay is hereby condoned. 3. The assessee has filed online application on 12.10.2023 in Form No.10AB u/s. 12A(1)(ac)(iii) of the Income-tax Act, 1961 (hereinafter “the Act”), seeking registration u/s. 12AB of the Income-tax Act, 1961 (hereinafter “the Act”). However, the Ld. CIT(E) rejected the application on the ground that the assessee failed to comply with the notices issued regarding its activities, despite having been afforded sufficient opportunity. 4. The Ld. Authorized Representative (A.R) of the assessee before us has submitted that the assessee trust was unable to respond to the proceedings due to a lack of awareness of using income tax portal. The Ld. AR therefore, prayed that one more opportunity be granted to the assessee to substantiate its claim. ITA No.626/Chny/2025 :- 3 -: 5. The Ld. Departmental Representative (DR), on the other hand, supported the order passed by the Ld. CIT(E) in rejecting the application as the assessee has not complied with the notices issued. 6. We have heard the rival submissions, and perused the materials available on record. It is noted that the Ld. CIT(E) had rejected the application filed by the assessee seeking registration u/s. 12AB of the Act on account of assessee’s failure to comply with the notices regarding its activities. However, before us, the Ld. AR has contended that adequate opportunity was not granted by the Ld. CIT(E) to produce the necessary details. In the interest of justice and considering principles of natural justice, we are of the view that the assessee be provided with another opportunity of hearing to substantiate its case before the Ld. CIT(E) subject to payment of costs of Rs.2,000/-. The same shall be paid by the assessee to Tamil Nadu State Legal Services Authority at Hon’ble High Court of Madras within a period of one month from the date of receipt of this order and produce the receipt before the Ld. CIT(E). Accordingly, we set aside the order passed by the Ld. CIT(E) and remit the matter to his file with a direction to examine the application afresh, after providing due opportunity of being heard to the assessee in accordance with law. We also direct the assessee to appear before the Ld. CIT(E) on the ITA No.626/Chny/2025 :- 4 -: date of hearing without fail. In view of the above, the appeal filed by the assessee is allowed for statistical purposes. 7. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced on 30th April, 2025. Sd/- Sd/- (यस यस िव ने रिव) (SS Viswanethra Ravi) \u0001याियक \u0001याियक \u0001याियक \u0001याियक सद\bय सद\bय सद\bय सद\bय / Judicial Member (जगदीश) (Jagadish) लेखा लेखा लेखा लेखा सद\u0011य सद\u0011य सद\u0011य सद\u0011य /Accountant Member चे\u0013नई/Chennai, \u0016दनांक/Dated: 30th April, 2025. EDN/- आदेश क\u0019 \bितिल प अ े षत/Copy to: 1. अपीलाथ\u0007/Appellant 2. \b थ\u0007/Respondent 3. आयकर आयु\u000f/CIT, Chennai 4. िवभागीय \bितिनिध/DR 5. गाड\u0018 फाईल/GF "