SATHYA CHETANA EDU TRUST,THIRUVANNAMALAI V. CIT (EXEMPTIONS), CHENNAI

ITA 733/CHNY/2025

AI Insights

The case involves Sathya Chetana Edu Trust, which appealed against the order of the Commissioner of Income Tax (Exemptions), Chennai, rejecting their application for approval under section 80G(5)(iii) of the Income Tax Act due to a delay in filing. The Trust initially filed an application under an incorrect sub-section and later withdrew it to file under the correct sub-section, albeit with a delay of 58 days. The Tribunal found that in the interest of natural justice and equity, the delay should be condoned and the matter should be reconsidered by the CIT (Exemptions).

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 633461 (ITAT-CHENNAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-06-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: misc
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: M. K. BIJU; BY VIRTUAL
• Assessee Lawyers: S.P.CHIDAMBARAM; SONALI KOTHARI
• Keywords: Set aside; Principle of natural justice
• Section: 80G

Judgement Text

" आयकर अपीलीय अिधकरण, ‘ए बी सी डी’ Ɋायपीठ, चेɄई IN THE INCOME TAX APPELLATE TRIBUNAL ‘B’ BENCH, CHENNAI ŵी मनु क ुमार िगįर, Ɋाियक सद˟ एवं ŵी एस. आर. रघुनाथा, लेखा सद˟ क े समƗ BEFORE SHRI MANU KUMAR GIRI, JUDICIAL MEMBER AND SHRI S. R. RAGHUNATHA, ACCOUNTANT MEMBER आयकर अपील सं./ITA No.:733/Chny/2025 Sathya Chetana Edu Trust, No.130A, Sun Building, Min Nagar, Vengikkal, Thiruvannamalai – 606 604. vs. CIT (Exemptions), Aayakar Bhawan - Annexe Building, Chennai. [PAN: AADTS-9312-C] (अपीलाथŎ/Appellant) (ŮȑथŎ/Respondent) अपीलाथŎ की ओर से/Appellant by : Shri. S.P. Chidambaram, Advocate & Ms. Sonali Kothari, Advocate ŮȑथŎ की ओर से/Respondent by : Shri. M.K. Biju, CIT-DR by Virtual सुनवाई की तारीख/Date of Hearing : 03.06.2025 घोषणा की तारीख/Date of Pronouncement : 11.06.2025 आदेश /O R D E R PER S. R. RAGHUNATHA, ACCOUNTANT MEMBER: This appeal by the assessee is filed against the order of the learned Commissioner of Income Tax (Exemptions), Chennai, dated 19.02.2025. 2. Before us, the ld.AR for the assessee stated that the assessee trust had filed applications before the ld.CIT(E) for approval u/s. 80G (5)(iii) of the Act in Form No.10AB on 28.08.2024. As pointed by the ld.AR, we find from the grounds that the assessee has filed the application for approval on 29.02.2024 under incorrect sub- clause (iv) of Section 80G(5) and hence withdrawn that application. However, the assessee filed the impugned application on 28.08.2024 with a delay of 58 days as :-2-: ITA. No.:733/Chny/2025 the extended date was expired on 30.06.2024. However, the ld.CIT(E) has rejected the application for approval u/s. 80G (5)(iii) of the Act Act in Form No.10AB on 28.08.2024, for the reason that there was a delay in filing the application of 58 days as per 4.4 of the order of the Ld.CIT(E). Hence, the assessee prayed for condoning the delay of 58 days in filing the application in Form 10AB, since the original application was filed well within the due date i.e. on 29.02.2024 and prayed for providing one more opportunity of hearing before the Ld.CIT(E). 3. The ld.DR relied on the impugned order and prayed for confirming the same. 4. We have heard both the parties, perused the record and impugned orders. It is an undisputed fact that the assessee had filed its application for approval earlier under the incorrect sub section of section 80G(5) on 29.02.2024 and withdrew the same for the purpose of filing the fresh application under correct sub section (iii) of section 80G(5) of the Act. 5. We note that the ld.CIT(E) passed an order in Form 10AD rejecting the approval u/s. 80G(5)(iii) of the Act filed in Form 10AB due to delay in filing the application for 58 days. 6. In our considered view, since the assessee had filed the original application under incorrect sub section of section 80G(5) of the Act, in the interest of natural justice and equity, we are inclined to condone the delay in filing the application for approval u/s.80G(5)(iii) of the Act by the assessee. 7. Therefore, keeping in mind the principles of natural justice we set aside and restore the application filed for registration u/s.80G(5)(iii) of the Act, in form 10AB back to the file of the Ld.CIT(E) with a direction to the Ld.CIT(E) to consider the :-3-: ITA. No.:733/Chny/2025 application filed by the assessee and pass the order in accordance with law by giving an opportunity of hearing to the assessee. Needless to say, the assessee should be diligent in responding to the notices and furnish all the required documents during the proceedings without seeking unnecessary adjournments and providing correct address and email ID. Thus, the matter is restored to the CIT(E), Chennai. If assessee fail to appear then, no lenient view will be taken by the ld.CIT(E). 8. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced in the open court on 11th June, 2025 at Chennai. Sd/- Sd/- (मनु क ुमार िगįर) (MANU KUMAR GIRI) Ɋाियक सद˟/Judicial Member (एस. आर. रघुनाथा) (S. R. RAGHUNATHA) लेखासद˟/Accountant Member चेɄई/Chennai, िदनांक/Dated, the 11th June, 2025 SP आदेश की Ůितिलिप अŤेिषत/Copy to: 1. अपीलाथŎ/Appellant 2. ŮȑथŎ/Respondent 3.आयकर आयुƅ/CIT– Chennai/Coimbatore/Madurai/Salem 4. िवभागीय Ůितिनिध/DR 5. गाडŊ फाईल/GF "