MAA VAISHO SEVA SAMITI AOP- TRUST,CHENNAI V. CIT(EXEMPTION) CHENNAI, CHENNAI

ITA 2427/CHNY/2024

AI Insights

The case involves MAA Vaishno Seva Samiti, which appealed against the order of the Commissioner of Income Tax (Exemptions), Chennai, rejecting their application for registration under section 12AB of the Income Tax Act. The rejection was primarily due to the assessee's non-compliance with show cause notices. The Tribunal acknowledged the internal disputes among the trustees as a reason for non-compliance but decided to give the assessee a final opportunity to present their case, emphasizing the need for compliance with procedural requirements and the payment of costs for the delay caused.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 27189 (ITAT-CHENNAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-01-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: misc
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: R. CLEMENT RAMESH KUMAR
• Assessee Lawyers: M. KARUNAKARAN
• Keywords: Opportunity of being heard

Judgement Text

" Page - 1 - of 4 आयकर अपीलीय अधिकरण, ’सी’ न्यायपीठ, चेन्नई। IN THE INCOME TAX APPELLATE TRIBUNAL ‘C’ BENCH: CHENNAI श्री यस यस विश्वनेत्र रवि, न्यावयक सदस्य एवं श्री अविताभ शुक्ला, लेखा सदस्य क े समक्ष BEFORE SHRI SS VISWANETHRA RAVI, JUDICIAL MEMBER AND SHRI AMITABH SHUKLA, ACCOUNTANT MEMBER आयकर अपील सं./ITA No.2427/Chny/2024 निर्ाारण वर्ा /Assessment Years: 2024 MAA Vaishno Seva Samiti, B-402, Sakthi Towers, No.349, MRH Road, Madhavaram, Chennai-60 [PAN: AAFTM5051J] The Commissioner of Income Tax (Exemptions), Chennai (अपीलार्थी/Appellant) (प्रत्यर्थी/Respondent) अपीलार्थी की ओर से/ Assessee by : Shri M.Karunakaran, Advocate. प्रत्यर्थी की ओर से /Revenue by : Shri R.Clement Ramesh Kumar, CIT सुिवाई की तारीख/Date of Hearing : 20.11.2024 घोर्णा की तारीख /Date of Pronouncement : 22.01.2025 आदेश / O R D E R PER AMITABH SHUKLA, A.M : This appeal is filed against the order bearing DIN & Notice No.ITBA/EXM/F/EXM45/2024-25/1068260966(1) dated 02.09.2024 for the assessment years 2024. Through the aforesaid appeal the assesse has challenged order dated 02.09.2024 passed by Ld. CIT(E), Chennai whereby he has rejected application in Form-10AB for grant of registration u/s 12AB of the act. ITA No.2427/Chny/2024 :- 2 -: Page - 2 - of 4 2.0 At the outset the Ld. Counsel for the assessee requested for remitting the issue back to the file of Ld.CIT(E) for reconsideration of its application in Form-10AB seeking registration u/s. 12AB of the act. The Ld.Counsel submitted that admittedly it failed to make necessary compliances to the show cause notices issued by the Ld.CIT(E ) which eventually resulted in the rejection of his application. In support of justification for non-compliance, the Ld. Counsel submitted that there were some contemporaneous differences, disputes amongst the trustees which led to non-compliance to the show cause notices issued by the Ld.CIT(E ). It was submitted that all the issues now have been resolved and the assessee assures that it shall make due compliance to the notices issued by the Ld.CIT(E ). The Ld. DR argued that argued that the matter may be remitted back back to the file of Ld.CIT(E) for reconsideration however the assessee should pay costs for wasting precious time of this Hon’ble Coordinate Bench. 3.0 We have heard rival submissions in the light of material available on records. We have noted that the only justification given by the Ld.CIT(E ) for rejecting the application of assessee is that no compliance has been made to the show cause notices issued by him. The action of the Ld.CIT(E ) cannot be faulted upon since that was the only right course of action. We however are ITA No.2427/Chny/2024 :- 3 -: Page - 3 - of 4 satisfied with the reasons for non-compliance put forth before us. We are also conscious of the fact that no litigant benefits by not prosecuting its case. Be that as it may be, we are of the view that ends of justice would be met if the assessee is accorded one final opportunity to present its case for grant of registration before the Ld.CIT(E ). We have also noted that the assessee by its conduct has contributed to wastage of precious time of this tribunal. Accordingly, we direct the Ld.CIT(E ) to reconsider assessee’s application in Form-10AB dated 06.03.2024 for grant of registration u/s. 12AB, after giving due opportunity of being heard and by passing a speaking order, subject to payment of cost of Rs.25,000/- 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. The assessee shall comply with all the notices of the Ld.CIT(E ) and any non-compliance thereof shall be adversely viewed. Accordingly, all the grounds of appeal raised by the assessee are allowed for statistical purposes. ITA No.2427/Chny/2024 :- 4 -: Page - 4 - of 4 4.0 In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced on 22nd , January-2025 at Chennai. Sd/- (यस यस नवश्विेत्र रनव) (SS VISWANETHRA RAVI) न्यानयक सदस्य / Judicial Member Sd/- (श्री अनमताभ शुक्ला) (AMITABH SHUKLA) लेखा सदस्य /Accountant Member चेन्नई/Chennai, नदिांक/Dated: 22nd , January-2025. KB/- आदेश की प्रतितिति अग्रेतिि/Copy to: 1. अिीिार्थी/Appellant 2. प्रत्यर्थी/Respondent 3. आयकर आयुक्त/CIT - Chennai 4. तिभागीय प्रतितिति/DR 5. गार्ड फाईि/GF "