SAMACHAR MANYATA ASSOCIATION FOR RESEARCH & TRAINING,CHENNAI V. CIT, EXEMPTIONS, CHENNAI

ITA 386/CHNY/2025

AI Insights

The case involves two appeals by Samachar Manyata Association for Research & Training against the orders of the Commissioner of Income Tax (Exemptions), Chennai, which denied them exemptions under sections 12A and 80G of the Income Tax Act. The primary contention was the alleged violation of the principles of natural justice, where the Commissioner was accused of drawing unilateral conclusions without providing the appellant an opportunity to be heard. The Tribunal found merit in the appellant's arguments, noting a non-speaking order and non-application of mind by the Commissioner, and thus decided to remit the matter back for a fresh adjudication.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 717417 (ITAT-CHENNAI)
• Duration Of Justice: 6 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-08-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: misc
• Appeal Filed On: 07-02-2025
• Other Referred Cases: Ahmadabad Rana Caste Association
• Laws Referred To: Section 12A, Section 80G
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: E.PAVUNA SUNDARI
• Assessee Lawyers: P.M. KATHIR
• Keywords: Opportunity of being heard; Principle of natural justice
• Section: 12A; 80G

Judgement Text

"आयकर अपीलीय अधिकरण, ‘ए’ न्यायपीठ, चेन्नई। IN THE INCOME TAX APPELLATE TRIBUNAL ‘A’ BENCH: CHENNAI माननीय श्री मनु क ुमार धिरर ,न्याधयक सदस्य एवं माननीय श्री अमिताभ शुक्ला, लेखा सदस्य क े सिक्ष BEFORE HON’BLE SHRI MANU KUMAR GIRI, JUDICIAL MEMBER AND HON’BLE SHRI AMITABH SHUKLA, ACCOUNTANT MEMBER आयकर अपील सं./ITA No.386/Chny/2025, Assessment Years: - आयकर अपील सं./ITA No.387/Chny/2025, Assessment Years: - Samachar Manyata Association for Research & Training, Old No.19, New No.72, Marshall Road, Egmore, Chennai-600 008. [PAN: ABFCS2266P] The Commissioner of Income Tax (Exemptions), Chennai. (अपीलार्थी/Appellant) (प्रत्यर्थी/Respondent) अपीलार्थी की ओर से/ Assessee by : Shri P.M.Kathir, Advocate प्रत्यर्थी की ओर से /Revenue by : Ms.E.Pavuna Sundari, CIT सुनवाई की तारीख/Date of Hearing : 12.08.2025 घोषणा की तारीख /Date of Pronouncement : 13.08.2025 आदेश / O R D E R PER AMITABH SHUKLA, A.M : The below mentioned two appeals have been filed by the appellant assessee contesting the order of Ld. CIT(E ) indicated Column-E, herein below:- S. No. Appeal Nos. AYs Appellant CIT(A) Order Details Respondent A B C D E F 1 ITA No. 386 / Chny / 2025 - Samachar Manyata Association for Research & Training, Chennai-600 008. [PAN: ABFCS2266P] DIN & Order No. ITBA / EXM / F / EXM45 / 2024-25 / 1071655725(1) dated 28.12.2024 The Commissioner of Income Tax (Exemptions), Chennai. 2 ITA No. 387 / Chny / 2025 - DIN & Order No. ITBA / EXM / F / EXM45 / 2024-25 / 1071655814(1) dated 28.12.2024 Printed from counselvise.com ITA No.386 & 387 /Chny/2025 Page - 2 - of 5 2.0 Both the above appeals of the assessee are centering around the common ground of denial of exemption u/s. 12A and section 80G and hence for the purposes of convenience were heard together and are being adjudicated by this common order. For the purposes of convenience we will consider the appeal of the assessee in ITA 386/Chny/2025 qua denial of exemption u/s 12A. As the facts are identical the decision therein shall apply mutatis mutandis to ITA No.387/Chny/2025 as well. 3.0 At the outset the Ld.Counsel for the assessee submitted that there has been violation of principles of natural justice in this case in as much as the Ld.CIT(E ) has drawn unilateral conclusion without affording the assessee an opportunity of being heard. It was accordingly requested that matter may be considered for remission back to the Ld.CIT(E) for readjudication after affording the assessee an opportunity of being heard. 4.0 Per contra, the Ld.DR relied upon the order of Ld.CIT(E ). 5.0 We have heard the rival submissions in the light of material available on records. We find considerable force in the averments of the appellant assessee. We have also noted a case of apparent non- application of mind and passing of a non-speaking order by the Ld.CIT(E). We have noted that on page 7 of the order he has reproduced some fund flow analysis from which he has drawn adverse Printed from counselvise.com ITA No.386 & 387 /Chny/2025 Page - 3 - of 5 conclusions. The impugned extraction of fund flow analysis is beyond any comprehension as it cannot be read and understood. The conclusion drawn on page 9 that the assessee had received donations and spending it on ineligible manufacturing and project expenses is thus unwarranted and unfounded. Even the Ld.DR expressed her inability to explain us the contents of the extraction done on page 7 of the order. We have noted on page 9 of the order that the Ld.CIT(E ) has alleged that the appellant assessee has failed to satisfy him qua compliance to the judicial ratio laid down by Hon’ble Gujarat High Court in case of Ahmadabad Rana Caste Association and failed to provide credible evidence of general public utility services performed by it. The fact of the matter remains that there is nothing on record to indicate that the appellant assessee was ever asked by way of any show cause notice to submit the impugned details. The Ld CIT( E) is within his legal rights to raise queries as per his discretion but he is not authorized to draw unilateral conclusions without confronting the same to assessee. The allegation of appellant assessee of violation of principles of natural justice in this case in as much as the Ld.CIT(E ) has drawn unilateral conclusion without affording the assessee an opportunity of being heard thus stands established. Accordingly, in the interest of justice, we deem it appropriate to remit the file to the Ld.CIT(E ) for readjudication of the matter afresh after due opportunity of being heard and by passing a Printed from counselvise.com ITA No.386 & 387 /Chny/2025 Page - 4 - of 5 speaking order, in accordance with law. It shall be bounden upon the assessee to comply with statutory notices and any non-compliance shall be adversely viewed. Accordingly, all the grounds raised by the assessee in the ITA No.386/Chny/2025 are allowed for statistical purposes. 6.0 In the result the appeal of the assessee in ITA No.386/Chny/2025 is allowed for statistical purposes. 7.0 It has been noted that the appeal of the assessee in ITA No.387/Chny/2025 is identical on facts except for the fact that it pertains to denial of approval u/s 80G. Accordingly, the decision taken in ITA No.386/Chny/2025 shall apply mutatis mutandis. 8.0 In the result the appeal of the assessee in ITA No.387/Chny/2025 is also allowed for statistical purposes. Order pronounced on 13th , Aug-2025 at Chennai. Sd/- (मनु क ुमार धिरर) (MANU KUMAR GIRI) न्याधयक सदस्य / Judicial Member Sd/- (अधमताभ शुक्ला) (AMITABH SHUKLA) लेखा सदस्य /Accountant Member चेन्नई/Chennai, धदनांक/Dated: , Aug-2025. KB/- आदेश की प्रतितिति अग्रेतिि/Copy to: 1. अिीिार्थी/Appellant 2. प्रत्यर्थी/Respondent 3. आयकर आयुक्त/CIT - Chennai/Coimbatore/Madurai/Salem. Printed from counselvise.com ITA No.386 & 387 /Chny/2025 Page - 5 - of 5 4. तिभागीय प्रतितिति/DR 5. गार्ड फाईि/GF Printed from counselvise.com "