SAINT ALPHONSA ACADEMY FOR EXCELLENCE ,NAGERCOIL V. CIT (EXEMPTION), CHENNAI

ITA 3219/CHNY/2024

AI Insights

The case involves the Saint Alphonsa Academy For Excellence, which appealed against the decision of the CIT (Exemptions), Chennai, rejecting their application for approval under section 80G(5)(iii) of the Income Tax Act, 1961. The rejection was based on the academy's failure to appear for a hearing due to insufficient notice and adverse weather conditions. The tribunal found that the notice given was inadequate and constituted a violation of natural justice, leading to the setting aside of the CIT's decision and remanding the case for a fresh hearing.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 312620 (ITAT-CHENNAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-04-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2024-2025
• Laws Referred To: Income Tax Act, 1961, Income Tax Rules, 1962
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ARV SREENIVASAN
• Assessee Lawyers: . RAGHUNATH
• Keywords: Set aside; Principle of natural justice; Procedural lapse

Judgement Text

" आयकर अपीलीय अिधकरण, ‘बी’ \u0001यायपीठ, चे ई। IN THE INCOME TAX APPELLATE TRIBUNAL ‘B’ BENCH: CHENNAI \u0001ी एबी टी. वक , ाियक सद\u0011 एवं एवं एवं एवं \u0001ी जगदीश, लेखा सद क े सम\u0015 BEFORE SHRI ABY T. VARKEY, JUDICIAL MEMBER AND SHRI JAGADISH, ACCOUNTANT MEMBER आयकर अपील सं./ITA No.3219/Chny/2024 िनधा\u000eरणवष\u000e/Assessment Year: 2024-25 Saint Alphonsa Academy For – Excellence, 9F ST Alphonsa Shrine Church, A R P Camp Road, Kottar Post, Nagercoil, Kanyakumari-629 002. v. The CIT (Exemptions), Chennai. [PAN: ABFTS 6249 B] (अपीलाथ\u0016/Appellant) (\u0017\u0018यथ\u0016/Respondent) अपीलाथ\u0016 क\u001a ओर से/ Appellant by : Mr. D.R. Raghunath, Advocate \u0017\u0018यथ\u0016 क\u001a ओर से /Respondent by : Mr. ARV Sreenivasan, Addl.CIT सुनवाईक\u001aतारीख/Date of Hearing : 05.03.2025 घोषणाक\u001aतारीख /Date of Pronouncement : 29.04.2025 आदेश / O R D E R PER ABY T. VARKEY, JM: This is an appeal preferred by the assessee against the order of the Learned Commissioner of Income Tax (Exemptions), (hereinafter referred to as “the Ld.CIT(E)”), Chennai, dated 26.10.2024 for rejecting the application filed by the assessee vide application dated 29.04.2024 in ITA No.3219/Chny/2024 (AY 2024-25) Saint Alphonsa Academy For Excellence :: 2 :: Form No.10AB under Rule 17A of the Income Tax Rules, 1962 (hereinafter referred to as ‘the Rules‘) seeking approval u/s.80G(5)(iii) of the Income Tax Act, 1961 (hereinafter referred to as \"the Act”). 2. At the outset, the Ld.AR of the assessee submitted that the impugned action of the Ld.CIT(E) is bad for gross violation of natural justice, and for substantiating such a contention, he placed before us, a copy of the notice issued by Ld CIT(E) dated 14.10.2024; and it is noted from a perusal of the ibid notice that it was issued by the Ld.CIT(E) on 14.10.2024 at 05:08 PM directing the assessee to appear on 16.10.2024 at 11:00 AM in his Office; meaning, less than 36 hours was given to assessee to appear before the Ld.CIT(E). In this regard, the Ld.AR pointed out that the assessee responded to it on 16.10.2024 [a copy of which is found placed at Page Nos.54-55 of Appeal Set (AS)], wherein, the assessee sought adjournment since the assessee was residing at Nagercoil, Kanyakumari District which was situated at a distance of 705 KMs away from Chennai and due to bad weather at that particular time [red alert and heavy rain in Chennai], the assessee faced difficulty to comply with the directions issued by the Ld.CIT(E), which resulted in passing of the impugned order dated 26.10.2024; and consequently, application filed by the assessee for approval u/s.80G(5)(iii) of the Act was rejected. Therefore, the assessee prays that since there was a gross ITA No.3219/Chny/2024 (AY 2024-25) Saint Alphonsa Academy For Excellence :: 3 :: violation of natural justice and the Ld.CIT(E) has rejected the application without hearing the assessee, the impugned action is fragile in the eyes of law and prays that the ibid application be restored back to the file of the Ld.CIT(E). The Ld.DR couldn’t controvert the assertions made by the assessee that the Ld.CIT(E) had given less than ‘36’ / ‘24’ hours for the assessee to appear before him for presenting its case and producing the documents called for by the Ld.CIT(E). Considering the fact that the Ld.CIT(E) has given only a short notice and also taking note of bad weather conditions at that time, we are of the view that assessee can’t be faulted for non-appearance before the Ld.CIT(E) on 16.10.2024 and so, there was exfacie violation of natural justice and therefore, impugned action of the Ld.CIT(E) is fragile in the eyes of law and therefore, the impugned action is set aside and the application for grant of approval u/s.80G(5)(iii) of the Act is restored back to the file of the Ld.CIT(E) so that the procedural lapse which had prejudicially affected the assessee can be set right, and the Ld.CIT(E) after applying with the Rules of natural justice i.e. after giving proper opportunity to the assessee to produce relevant documents to support the application filed for grant of approval, to pass order in accordance to law. And the assessee is directed to file written submissions and relevant documents before the Ld CIT(E) in support of its application for approval u/s.80G(5)(iii) of the Act and the ITA No.3219/Chny/2024 (AY 2024-25) Saint Alphonsa Academy For Excellence :: 4 :: Ld CIT(E) is directed to pass order in accordance to law after hearing the assessee. 3. In the result, appeal filed by the assessee is allowed for statistical purposes. Order pronounced on the 29th day of April, 2025, in Chennai. Sd/- Sd/- (जगदीश) (JAGADISH) लेखा सद /ACCOUNTANT MEMBER (एबी टी. वक ) (ABY T. VARKEY) \u0001याियक सद\bय/JUDICIAL MEMBER चे ई/Chennai, !दनांक/Dated: 29th April, 2025. TLN आदेश क\u001a \u0017ितिलिप अ$ेिषत/Copy to: 1. अपीलाथ\u0010/Appellant 2. \u0011\u0012थ\u0010/Respondent 3. आयकरआयु\u0018/CIT, Chennai / Madurai / Salem / Coimbatore. 4. िवभागीय\u0011ितिनिध/DR 5. गाड फाईल/GF "