SEEMAIS TRUST, THE NILLGIRIS,NILGIRIS V. CIT(EXEMPTION), CHENNAI, CHENNAI

ITA 2176/CHNY/2024

AI Insights

The case involves Seemais Trust appealing against the decision of the Commissioner of Income Tax (Exemption), Chennai, which had rejected their application for registration under section 12AB of the Income-tax Act, 1961. The rejection was based on the non-compliance with notices requiring the submission of relevant documents and details. The Tribunal found that the assessee was not given sufficient time to comply with the final notice, which was issued only four working days before the deadline. Considering the principles of natural justice, the Tribunal decided to provide another opportunity for the assessee to present their case.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 107280 (ITAT-CHENNAI)
• Duration Of Justice: 2 month(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-10-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Next Hearing Date: 21-10-2024
• Assessment Year: misc
• Appeal Filed On: 16-08-2024
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: R. CLEMENT RAMESH KUMAR
• Assessee Lawyers: B. AGNUS JENNIFER
• Keywords: Set aside; Principle of natural justice

Judgement Text

"आयकर अपीलीय अिधकरण, ‘सी’ \u0011ा यपीठ, चे\u0016ई। IN THE INCOME TAX APPELLATE TRIBUNAL ‘C’ BENCH: CHENNAI \u0019ी महा वीर िसंह, उपा \u001f एवं \u0019ी जगदीश, लेखा सद' क े सम BEFORE SHRI MAHAVIR SINGH, VICE PRESIDENT AND SHRI JAGADISH, ACCOUNTANT MEMBER आयकर अपील सं./ITA No.2176/Chny/2024 Seemais Trust, 2/248-A, Shirdi Saibaba Dharmashala, Siddhagiri, Yedapalli, Coonor, The Nilgiris – 643 104. Vs. The Commissioner of Income Tax (Exemption), Chennai. [PAN: AARTS 7246M] (अपीलाथ\u0007/Appellant) (\b\tयथ\u0007/Respondent) अपीला थ: की ओर से/ Appellant by : Ms. B. Agnus Jennifer, Advocate <=थ: की ओर से /Respondent by : Shri R. Clement Ramesh Kumar, CIT सुनवा ई की ता रीख/Date of Hearing : 21.10.2024 घोषणा की ता रीख /Date of Pronouncement : 21.10.2024 आदेश / O R D E R PER JAGADISH, A.M : Aforesaid appeal filed by the assessee is against the order of Learned Commissioner of Income Tax (Exemption), Chennai [hereinafter “CIT(E)”] dated 19.06.2024 rejecting the application filed in Form No.10AB u/s. 12(1)(ac)(iii) seeking registration u/s. 12AB of the Income-tax Act, 1961 (hereinafter “the Act”). ITA No.2176/Chny/2024 :- 2 -: 2. The assessee has filed online application on 12.12.2023 in Form No.10AB u/s. 12A(1)(ac)(v) of the Act seeking registration u/s. 12AB of the Act. The Ld. CIT(E) has issued notice on 15.05.2024 to furnish the relevant documents and details on or before 24.05.2024 which remained un-complied. The Ld. CIT(E) has issued further show cause notice on 28.05.2024 giving final opportunity to furnish the details by 03.06.2024, which again was not complied. The Ld. CIT(E) therefore, rejected the application filed by the assessee seeking registration u/s. 12AB of the Act. 3. The Ld. Authorized Representative (A.R) of the assessee before us has submitted that sufficient opportunity was not provided as the final hearing notice was issued on 28.05.2024 to provide details on 03.06.2024 which provided only 4 working days and by the time the assessee gathered the information , the Ld. CIT(E) passed order ex- parte rejecting the application. The Ld. AR has argued that the order was passed ex-parte and sufficient time was not provided , one more opportunity may be provided to file the relevant documents. 4. The Ld. Departmental Representative (DR), on the other hand, supported the order passed by the Ld. CIT(E) rejecting the application as the assessee has not complied with the notices issued. ITA No.2176/Chny/2024 :- 3 -: 5. We have heard the rival submissions, and perused the materials available on record. The assessee has been issued final show cause notice on 28.05.2024 and only four working days has been given. We are of the opinion that keeping in view the principles of natural justice, the assessee be provided with another opportunity of hearing to substantiate his case before the Ld. CIT(E). Accordingly, we set aside the order passed by the Ld. CIT(E) and remit the matter back to the file of the Ld. CIT(E) to consider the application of the registration afresh in accordance with law, after giving reasonable opportunity to the assessee. We also direct the Assessee to appear before the Ld. CIT(E) on the date of hearing without fail. In view of the above, the appeal filed by the assessee is allowed for statistical purposes. 6. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced in the open Court on 21st October, 2024. Sd/- Sd/- (महा वीर िसंह) (Mahavir Singh) उपा \u001f / Vice President (जगदीश) (Jagadish) लेखा लेखा लेखा लेखा सद\u0003य सद\u0003य सद\u0003य सद\u0003य /Accountant Member चे\u0003ई/Chennai, \u0005दनांक/Dated: 17th October, 2024. EDN/- ITA No.2176/Chny/2024 :- 4 -: आदेश क\u0002 \u0003ितिलिप अ\tेिषत/Copy to: 1. अपीलाथ\u0007/Appellant 2. \b\tथ\u0007/Respondent 3. आयकर आयु\u000f/CIT, Chennai 4. िवभागीय \bितिनिध/DR 5. गाड\u0018 फाईल/GF "