SELVA SRI KRISHNA SEVA SABHA,CHENNAI V. CIT(EXEMPTION), CHENNAI

ITA 2440/CHNY/2024

AI Insights

The case involves Selva Sri Krishna Seva Sabha, a trust, which appealed against the order of the Commissioner of Income Tax (Exemption), Chennai, rejecting their application for registration under section 12AB of the Income Tax Act, 1961. The CIT(E) had rejected the application due to the assessee's failure to respond to several notices requesting documents to prove the genuineness of the trust's activities. The Tribunal found that the principles of natural justice were not properly followed and granted the assessee another opportunity to present their case before the CIT(E).

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 472433 (ITAT-CHENNAI)
• Duration Of Justice: 2 month(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-11-2024
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: D
• Next Hearing Date: 20-11-2024
• Assessment Year: 2024-2025
• Appeal Filed On: 18-09-2024
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: A. SASIKUMAR; IRS
• Assessee Lawyers: R. LALITHA
• Keywords: Principle of natural justice

Judgement Text

" आयकर अपीलीय अिधकरण ‘डी’’ Ɋायपीठ चेɄई मŐ। IN THE INCOME TAX APPELLATE TRIBUNAL ‘D’ BENCH, CHENNAI माननीय ŵी मनोज क ुमार अŤवाल ,लेखा सद˟ एवं माननीय ŵी मनु क ुमार िगįर, Ɋाियक सद˟ क े समƗ। BEFORE HON’BLE SHRI MANOJ KUMAR AGGARWAL, ACCOUNTANT MEMBER AND HON’BLE SHRI MANU KUMAR GIRI, JUDICIAL MEMBER आयकरअपील सं./ ITA No.2440/Chny/2024 Selva Sri Krishna Seva Sabha, Plot No.56, Krishnan Koil Street, Thiru Nagar, Valasaravakkam, Chennai 600 087. [PAN: ABITS 0189J] Vs. The Commissioner of Income Tax (Exemption) Chennai. (अपीलाथȸ/Appellant) (Ĥ×यथȸ/Respondent) अपीलाथȸ कȧ ओर से/ Appellant by : Smt R. Lalitha, C.A., Ĥ×यथȸ कȧ ओर से /Respondent by : Shri A. Sasikumar, IRS, CIT. सुनवाई कȧ तारȣख/Date of Hearing : 20.11.2024 घोषणा कȧ तारȣख /Date of Pronouncement : 21.11.2024 आदेश / O R D E R PER MANU KUMAR GIRI (Judicial Member) This appeal filed by the assessee is arising out of the order of the Ld. Commissioner of Income Tax (Exemption) Chennai (in short ‘’the Ld. CIT (E)’’) dated 21.08. 2024. 2. The assessee has filed an online application on 08.03.2024 in form No.10AB u/s.12A(1) (ac) (iii) of the Income Tax Act, 1961 ( in short ‘’the Act’’) seeking registration u/s.12AB of the Act. The ld. CIT( E) on receipt of application for 2 ITA No.2440/Chny/2024 registration has directed the assessee to submit necessary documents to prove the genuineness of activities of the trust. Ld. CIT(E) has issued several notices, however there was no response from assessee. Hence, the ld. CIT(E) rejected the application and cancelled the registration. Aggrieved, assessee preferred an appeal before us. 3. Before us, ld. Counsel for the appellant submitted that the ld. CIT(E) had not properly followed the principles of natural justice in true spirit. Ld. Counsel for the appellant further prayed that if an adequate opportunity of hearing is given before the ld. CIT(E), assessee will prosecute the case properly. Per contra, the Ld. CIT-DR pleaded for dismissal of the appeal on the ground that the assessee failed to appear before the CIT(E). 4. We have gone through the order of CIT(E) and submissions addressed by both the parties. We are of the considered view that in the interest of justice assessee should be given one more opportunity before the ld. CIT(E) to file necessary documents and prosecute its case. We are also conscious of the fact that the assessee has not filed the requisite response within as asked by the ld. CIT(E) as the President of the Trust has gone to foreign trip for his personal reasons. Therefore, in the light of aforesaid factual position we deem it fit to set aside this appeal to the file of ld. CIT(E) for denovo adjudication of application for registration. The ld. CIT(E) who shall proceed for denovo adjudication of application in form 10AB u/s.12A(1)(ac)(iii) of the Act after providing proper 3 ITA No.2440/Chny/2024 opportunity of hearing to the assessee. The assessee is directed to substantiate its case forthwith without any fail, failing which ld.CIT(E) shall be at liberty to proceed with the application of registration filed in form 10AB as per law. 5. In the result, the appeal of the assessee is allowed for statistical purpose. Order pronounced in the open court on 21st day of November, 2024 at Chennai. Sd/- Sd/- (मनोज क ुमार अŤवाल) (मनु क ुमार िगįर) (MANOJ KUMAR AGGARWAL) लेखा सद˟ / ACCOUNTANT MEMBER (MANU KUMAR GIRI) Ɋाियक सद˟ / JUDICIAL MEMBER चेɄई Chennai: िदनांक Dated : 21-11-2024 KV आदेश कȧ ĤǓतͧलͪप अĒेͪषत /Copy to : 1. अपीलाथŎ/Appellant 2. ŮȑथŎ/Respondent 3. आयकरआयुƅ/CIT, Chennai/Coimbatore/Madurai/Salem. 4. िवभागीयŮितिनिध/DR 5. गाडŊफाईल/GF "