RAHMAN KHAN EDUCATIONAL AND CHARITABLE TRUST,CHENNAI V. CIT, EXEMPTIONS, CHENNAI

ITA 2367/CHNY/2025

AI Insights

The case involves the Rahman Khan Educational and Charitable Trust, 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, 1961. The application was initially rejected due to being filed after the stipulated deadline and concerns regarding the trust's objectives. The Tribunal considered the arguments presented by both parties, including the trust's explanation for the delay and the discretion granted to the CIT (Exemptions) to condone such delays under the amended section 12A(1)(vi) of the Act. The Tribunal decided to remand the case for a fresh evaluation, emphasizing the need for the CIT (Exemptions) to exercise discretion in a manner consistent with the law.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 791697 (ITAT-CHENNAI)
• Duration Of Justice: 3 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-12-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Assessment Year: misc
• Appeal Filed On: 28-08-2025
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: .V. SREENIVASAN; C.I.T
• Assessee Lawyers: N. ARJUN RAJ
• Keywords: Reasonable cause; Charitable institution

Judgement Text

"आयकर अपील य अ धकरण, ‘डी’ \u000eयायपीठ, चे\u000eनई IN THE INCOME TAX APPELLATE TRIBUNAL ‘D’ BENCH, CHENNAI \u0015ी मनु क ुमार ग\u0019र, \u000eया\u001aयक सद य एवं \u0015ी एस. आर. रघुनाथा, लेखा सद य क े सम$ BEFORE SHRI MANU KUMAR GIRI, JUDICIAL MEMBER AND SHRI S. R. RAGHUNATHA, ACCOUNTANT MEMBER आयकर अपील सं./ITA No.:2367/Chny/2025 Rahman Khan Educational and Charitable Trust, No.15, Balaji Nagar 2nd Street, Royapettah, Chennai – 600 014. vs. CIT (Exemptions), Chennai. [PAN: AAETR-3845-G] (अपीलाथ%/Appellant) (&'यथ%/Respondent) अपीलाथ% क( ओर से/Appellant by : Shri. N. Arjun Raj, Advocate &'यथ% क( ओर से/Respondent by : Shri. AR. V. Sreenivasan, C.I.T. सुनवाई क( तार ख/Date of Hearing : 23.10.2025 घोषणा क( तार ख/Date of Pronouncement : 09.12.2025 आदेश /O R D E R PER S. R. RAGHUNATHA, AM : The above appeal is filed against the order of the Commissioner of Income Tax (Exemption), Chennai, vide order dated 21.06.2025 in respect of rejection of application u/s.12AB of the Income Tax Act, 1961 (in short ‘the Act’). 2. The brief fact of the case is that the assessee had filed an online application in Form No.10AB on 24.10.2024, u/s.12A(1)(ac)(iii) of the Act, Printed from counselvise.com :-2-: ITA. No.:2367/Chny/2025 seeking registration u/s.12AB of the Act. While processing the said application, the ld.CIT(E) had rejected the application on 21.06.2025 as not maintainable since the same was not filed within the stipulated time 30.09.2024 and on other grounds relating to the objects of the Trust. 3. Before us, the Ld.AR submitted that mere delay in filing Form No.10AB seeking final registration would not automatically result in rejection of such claim and stated the reasons for such delay. Further, he brought our attention that the proviso to Section 12A(1)(vi) of the Act brought in vide Finance Act No.2 of 2024 had empowered the ld.CIT(E) with the discretion to consider and condone the delay in filing the application if there is a reasonable cause for such delay in filing the application. He argued that the ld.CIT(E) ought to have exercised such discretion by condoning the delay in filing the application. The Ld.AR also brought our attention to the trust deed of the Trust and argued that the activities of the Trust were entitled for registration u/s.12AB of the Act. 4. Per contra, the ld.DR argued that the assessee has filed the application belatedly and also not participated in the proceedings and hence prayed for confirmation of the order of ld.CIT(E). 5. We have heard the rival submissions and perused the materials available on record. It is evident that the application u/s.12A(1)(ac)(iii) has only been filed on 24.10.2024 as against the stipulated due date on 30.09.2024. However, considering the genuine difficulty faced by the assessee trust resulting in such delay and considering the smallness of delay, it is found to be condonable. In such circumstances, we find it fit to condone the delay in filing the application in Form 10AB. 6. Since, the ld.CIT(E) had not condoned the delay and however had rendered findings on merits we deem it fit to remand the matter to the file of the ld.CIT(E) by condoning the delay with a direction to consider the application Printed from counselvise.com :-3-: ITA. No.:2367/Chny/2025 afresh without being influenced by the findings in the impugned order. Needless to say, that the assessee shall substantiate its case on the eligibility for grant of registration u/s.12AB of the Act. 7. In light of the above directions, we direct the ld.CIT(E) to consider the application filed in Form 10AB afresh by affording sufficient opportunity to the assessee and decide the matter in accordance with law. 8. In the result the appeal of the assessee allowed for statistical purposes. Order pronounced in the open court on 09th December, 2025 at Chennai. Sd/- Sd/- (मनु क ुमार ग\u0019र) (MANU KUMAR GIRI) \u000eया\u001aयक सद य/Judicial Member (एस. आर. रघुनाथा) (S. R. RAGHUNATHA) लेखा सद य/Accountant Member चे\u000eनई/Chennai, -दनांक/Dated, the 09th December, 2025 SP आदेश क( &\u001aत/ल0प अ1े0षत/Copy to: 1. अपीलाथ%/Appellant 2. &'यथ%/Respondent 3.आयकर आयु2त/CIT– Chennai/Coimbatore/Madurai/Salem 4. 0वभागीय &\u001aत\u001aन ध/DR 5. गाड4 फाईल/GF Printed from counselvise.com "