MADITSSIA TRADE & CONVENTION CENTER,MADURAI V. CIT, EXMEPTIONS, CHENNAI

ITA 1920/CHNY/2025

AI Insights

The case involves Maditssia Trade & Convention Centre, which appealed against the decisions of the Commissioner of Income Tax (Exemptions), Chennai, rejecting their applications for registration under section 12AB and approval under section 80G of the Income-tax Act, 1961. The primary contention was whether the activities of the convention center served a charitable purpose or were structured with a commercial objective. The Tribunal found that the assessee had not adequately demonstrated the charitable nature of its activities in the initial applications and thus remitted the matters back to the CIT(E) for a fresh evaluation after allowing the assessee to present further evidence.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 781445 (ITAT-CHENNAI)
• Duration Of Justice: 2 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-09-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: misc
• Appeal Filed On: 04-07-2025
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: BIPIN C.N
• Assessee Lawyers: N. ARJUN RAJ
• Keywords: Opportunity of being heard; Charitable institution
• Section: 80G

Judgement Text

" आयकर अपीलीय अिधकरण, ‘सी’ \u0011ा यपीठ, चे\u0016ई। IN THE INCOME TAX APPELLATE TRIBUNAL ‘C’ BENCH: CHENNAI \u0019ी मनु क ुमा र िग र, \u0011ा ियक सद एवं \u0019ी जगदीश, लेखा सद क े सम' BEFORE SHRI MANU KUMAR GIRI, JUDICIAL MEMBER AND SHRI JAGADISH, ACCOUNTANT MEMBER आयकर अपील सं./ITA Nos.1919 & 1920/Chny/2025 Maditssia Trade & Convention Centre, Near Madurai Corporation Office, Dr. Ambedkar Salai, Madurai – 625 020. PAN: AAMCM 4464D Vs. The Commissioner of Income Tax (Exemptions), Chennai. (अपीलाथ\u0007/Appellant) (\b यथ\u0007/Respondent) अपीलाथ; की ओर से/ Appellant by : Shri N. Arjun Raj, Advocate =>थ; की ओर से /Respondent by : Shri Bipin C.N, CIT सुनवाई की तारीख/Date of Hearing : 25.09.2025 घोषणा की तारीख /Date of Pronouncement : 29.09.2025 आदेश / O R D E R PER JAGADISH, A.M : Aforesaid appeals filed by the assessee arises out of the orders of Learned Commissioner of Income Tax (Exemption), Chennai [hereinafter “CIT(E)”] dated 27.06.2025 in rejecting application for registration u/s. 12A(1)(ac)(iii) of the Income-tax Act, 1961 (hereinafter “the Act”) and approval u/s 80G of the Act. Printed from counselvise.com ITA No.1919 & 1920/Chny/2025 Maditssia Trade & Convention Center :- 2 -: ITA No.1919/Chny/2025: 2. The Ld CIT(E) has rejected the application filed by the assessee in Form 10AB u/s. 12(1)(ac)(iii) of the Act on 21.11.2024 seeking registration u/s. 12AB of the Act for the reason that the applicant has not provided any evidence or clarification regarding the proposed usage of the convention center, specifically whether it will be made free of charge or fee will be levied for its use and in the absence of any note regarding free or subsidized access to the proposed convention center the activities are structured with commercial objective. 3. The Ld. Authorized Representative (AR), before us, submitted that the learned CIT(E), in para 4.2(v) of the impugned order, has observed that the activities of the assessee appear to be predominantly commercial in nature, with a clear revenue-generating intent. It was further noted by the Ld. CIT(E) that no material was placed on record by the assessee to demonstrate that the proposed convention centre would advance any charitable purpose or serve the public interest in any meaningful manner. The Ld. CIT(E) also observed that, in the absence of any note regarding free or subsidized access to the proposed convention centre, the activities appear to be structured with a commercial objective. The Ld. AR, therefore, pleaded Printed from counselvise.com ITA No.1919 & 1920/Chny/2025 Maditssia Trade & Convention Center :- 3 -: that one more opportunity may be granted to the assessee to file the necessary details before the learned CIT(E) to prove charitable objective. 4. On the other hand, the Ld. Departmental Representative (DR), has relied on the orders of lower authorities. 5. We have heard both the parties and gone through the order of the Ld. CIT(E). The Ld. CIT(E) rejected the application for registration u/s. 12AB of the Act after examining the present and proposed activities and observing that the applicant has not provided any evidence or clarification regarding the proposed usage of the convention center – specifically whether it will be made free of charge or fee will be levied for its use. The Ld CIT(E) has held that in absence of any note regarding free or subsidized access to the proposed convention center the activities are structured with a commercial objective. The Ld. AR has submitted that the assessee has evidences to demonstrate that it has undertaken charitable activities, but could not be furnished before Ld CIT(E), therefore one more opportunity may be provided before Ld CIT(E). Considering the submissions and in the interest of justice, we are of the view that one more opportunity should be granted to the assessee to present its case before Ld CIT(E). Printed from counselvise.com ITA No.1919 & 1920/Chny/2025 Maditssia Trade & Convention Center :- 4 -: Accordingly, we remit the matter back to the file of the Ld. CIT(E) for fresh consideration of the application, after affording the assessee a reasonable opportunity of being heard. We also direct the assessee to appear before the Ld. CIT(E) on the date of hearing without fail and submit all the relevant documents sought for by the Ld. CIT(E). In view of the above, the appeal filed by the assessee is allowed for statistical purposes only. ITA No.1920/Chny/2025: 6. In this case, the Ld. CIT(E) had rejected the assessee’s application for approval u/s. 80G(5) of the Act on the ground that the assessee has failed to prove the activities of the trust/institution are in charitable as defined in section 2(15) of the Act. Since, we have already remitted the matter relating to registration u/s. 12AB back to the file of the Ld. CIT(E) for fresh consideration, we are of the considered opinion that the issue of approval u/s. 80G(5) of the Act also requires reconsideration. Accordingly, we remit this matter as well to the file of the Ld. CIT(E) for fresh adjudication, after giving due opportunity to the assessee to clarify its objects and activities. Printed from counselvise.com ITA No.1919 & 1920/Chny/2025 Maditssia Trade & Convention Center :- 5 -: 7. In the result, both the appeals filed by the assessee is allowed for statistical purposes. Order pronounced on 29th day of September, 2025 at Chennai. Sd/- Sd/- (मनु क ुमार िग र) (Manu Kumar Giri) \u0011ाियक सद / Judicial Member (जगदीश) (Jagadish) लेखा लेखा लेखा लेखा सद\u0011य सद\u0011य सद\u0011य सद\u0011य /Accountant Member चे\u0013नई/Chennai, \u0016दनांक/Dated: 29th September, 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/Madurai/Coimbatore/Salem 4. िवभागीय \bितिनिध/DR 5. गाड\u0018 फाईल/GF Printed from counselvise.com "