SET INDIA FOUNDATION,TIRUVANNAMALAI V. CIT, EXEMPTIONS, CHENNAI

ITA 3121/CHNY/2024

AI Insights

The case involves Set India Foundation, which appealed against the order of the CIT (Exemption), Chennai, rejecting their application for registration under section 12AB of the Income Tax Act, 1961. The rejection was primarily due to the non-submission of requisite details by the assessee in response to notices from the CIT (Exemption). The Managing Trustee of the foundation was unable to appear and provide the necessary details due to being out of station. The Tribunal, considering the circumstances and the principles of natural justice, decided to remand the matter back to the CIT (Exemption) for a fresh consideration.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 36119 (ITAT-CHENNAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-02-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: T.M. SUGANTHAMALA
• Assessee Lawyers: N. ARJUN RAJ

Judgement Text

"आयकर अपीलȣय अͬधकरण, ‘बी’ Ûयायपीठ, चेÛन IN THE INCOME TAX APPELLATE TRIBUNAL ‘B’ BENCH, CHENNAI Įी जॉज[ जॉज[ क े, उपाÚय¢ एवं Įी एस.आर.रघुनाथा, लेखा सदèय क े सम¢ BEFORE SHRI GEORGE GEORGE K, VICE PRESIDENT AND SHRI S.R. RAGHUNATHA, ACCOUNTANT MEMBER आयकर अपील सं./ITA No.: 3121/CHNY/2024 Set India Foundation, 2/29, Brahmin Street, Osur Village, Vandavasi TK Osur B.O, Osur – 604 405. Tiruvannamalai. PAN: AALTS-5280-R Vs. CIT (Exemption), Chennai. (अपीलाथᱮ/Appellant) (ᮧ᭜यथᱮ/Respondent) अपीलाथᱮ कᳱ ओर से/Appellant by : Mr. N.Arjun Raj, Advocate ᮧ᭜यथᱮ कᳱ ओर से/Respondent by : Ms. T.M.Suganthamala, CIT सुनवाई कᳱ तारीख/Date of Hearing : 25.02.2025 घोषणा कᳱ तारीख/Date of Pronouncement : 26.02.2025 आदेश /O R D E R PER GEORGE GEORGE K, VICE PRESIDENT: This appeal at the instance of the assessee is directed against order of the CIT(Exemption), Chennai dated 18.10.2024 rejecting application for registration u/s.12AB of the Income Tax Act, 1961 (hereinafter called ‘the Act’). 2. At the very outset, we notice that CIT(E) has rejected the assessee’s application for registration u/s 12AB of the Act stating - 2 - ITA No. 3121/CHNY/2024 that assessee did not file requisite details required to be furnished in pursuance to the hearing notice dated 15.05.2024 and subsequent show cause notice dated 20.06.2024 issued from the Office of the CIT(Exemption). The Ld.AR submitted that Managing Trustee of the assessee trust was out of station and thus, he was unable to appear before the CIT(E) and to furnish necessary details sought for in the show cause notice dated 20.06.2024. Therefore, the Ld. AR pleaded for one more opportunity of hearing, in the interest of justice and equity, before the CIT(E) to represent this appeal by remitting the matter back to the CIT(E) for reconsidering the application u/s.12AB of the Income Tax Act, 1961. 3. The Ld. DR supported the order of the CIT(E). 4. We have heard rival submissions and perused material on record. The Office of the CIT(E) vide hearing notice dated 15.05.2024 and show cause notice dated 20.06.2024 had directed the assessee trust to furnish relevant documents / evidences in support of its claim for registration u/s.12AB of the Act. However, the Managing Trust of the assessee trust failed to appear before the CIT(E). Consequently, proceedings before CIT(E) remained ex-parte. Therefore, CIT(E) has rejected the application of the assessee for registration u/s.12AB of the Act vide - 3 - ITA No. 3121/CHNY/2024 impugned order dated 18.10.2024. In the interest of justice and equity, we restore this appeal to the files of CIT(E). We direct the CIT(E) to reconsider the application for registration u/s.12AB of the Act, on merits, after affording reasonable opportunity of being heard to the assessee. The assessee trust is directed to co-operate with the Revenue and shall not seek unnecessary adjournment in the matter. 5. In the result, appeal filed by the assessee is allowed for statistical purposes. Order pronounced in the open court on 26th February, 2025. Sd/- Sd/- (एस.आर. रघुनाथा) (S.R. RAGHUNATHA) लेखा सदèय/ACCOUNTANT MEMBER (जॉज[ जॉज[ क े) (GEORGE GEORGE K) उपाÚय¢ /VICE PRESIDENT चेÛनई/Chennai, Ǒदनांक/Dated, the 26th February, 2025 DS आदेश कȧ ĤǓतͧलͪप अĒेͪषत/Copy to: 1. अपीलाथȸ/Appellant 2. Ĥ×यथȸ/Respondent 3. आयकर आयुÈत /CIT, Chennai 4. ͪवभागीय ĤǓतǓनͬध/DR 5. गाड[ फाईल/GF. "