SHANKERLINGAM MEMORIAL CHARITABLE TRUST,CHENNAI V. CIT, EXEMPTIONS, CHENNAI

ITA 962/CHNY/2025

AI Insights

The case involves the Shankerlingam Memorial Charitable Trust, which appealed against the decision of the Commissioner of Income Tax (Exemptions), Chennai. The trust had applied for registration under section 12AB of the Income Tax Act but faced rejection due to alleged non-compliance with notices. The tribunal found that the CIT(E) had not adequately provided the trust an opportunity to comply, leading to the appeal. The tribunal emphasized the principles of natural justice and fair play, deciding to remand the case for a fresh hearing.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 708572 (ITAT-CHENNAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-07-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Assessment Year: misc
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: E.PAVUNA SUNDARI; VIRTUAL
• Assessee Lawyers: S. SEETHARAMAN
• Keywords: Set aside; Principle of natural justice; Charitable institution

Judgement Text

" आयकर अपीलीय अिधकरण, ‘ए बी सी डी’ Ɋायपीठ, चेɄई IN THE INCOME TAX APPELLATE TRIBUNAL ‘A’ BENCH, CHENNAI ŵी जॉजŊ जॉजŊ क े, उपाȯƗ एवं ŵी एस.आर.रघुनाथा, लेखा सद˟ क े समƗ BEFORE SHRI GEORGE GEORGE K, VICE PRESIDENT AND SHRI S.R. RAGHUNATHA, ACCOUNTANT MEMBER आयकर अपील सं./ITA No.:962/Chny/2025 Shankerlingam Memorial Charitable Trust, 33, Second Cross Street, West CIT Nagar, Nandanam, Chennai – 600 035. vs. CIT (Exemptions), Chennai. [PAN:AACTS-6339-N] (अपीलाथŎ/Appellant) (ŮȑथŎ/Respondent) अपीलाथŎ की ओर से/Appellant by : Shri. S. Seetharaman, C.A. ŮȑथŎ की ओर से/Respondent by : Ms. E. Pavuna Sundari, CIT (Virtual) सुनवाई की तारीख/Date of Hearing : 24.06.2025 घोषणा की तारीख/Date of Pronouncement : 15.07.2025 आदेश /O R D E R PER S. R. RAGHUNATHA, AM : This appeal by the assessee is filed against the order of the Commissioner of Income Tax (Exemption), Chennai, vide order dated 11.03.2025. 2. We find from the grounds that the assessee is a religious and charitable trust had filed an application seeking registration u/s.12AB of the Act, vide application in Form 10AB dated 29.09.2024 u/s.12A(1)(ac)(ii) of the Act. The ld.CIT(E) has rejected the application for non-compliance of the assessee in further proceedings by passing an order in Form 10AD dated 11.03.2025. Hence, the assessee filed this appeal and prayed for one more opportunity of hearing before the Ld.CIT(E). :-2-: ITA. No:962/Chny/2025 3. The ld.DR relied on the impugned order and submitted that the ld.CIT(E) had given sufficient opportunity and hence prayed for confirming the same. 4. We have heard both the parties, perused the record and impugned orders. It is an undisputed fact on record that the notices were issued by the ld.CIT(E) on the e-filing/ITBA portal. It is a matter of admitted fact that the assessee had filed an application on 29.09.2024 u/s.12A(1)(ac)(ii) of the Act, in Form No. 10AB seeking registration u/s.12AB before CIT(E), Chennai. However, the ld.CIT(E) passed the order in Form 10AD rejecting registration u/s.12A(1)(ac)(ii) of the Act filed in Form 10AB due to non-compliance of the notices as per the impugned order dated 11.03.2025. 5. In our considered view, since the Ld.CIT(E) rejected the application by passing an exparte order due to non-participation of the assessee and the assessee needs to be given one more opportunity in the interest of natural justice and fair play. 6. Therefore, keeping in mind the principles of natural justice we set aside the order of ld.CIT(E) and restore the application filed u/s.12A(1)(ac)(ii) of the Act, in Form No. 10AB for seeking registration u/s.12AB of the Act, back to the file of the Ld.CIT(E) with a direction to send notices on the assessee afresh through registered email ID, e-portal or as per provisions of the Act and pass speaking order after giving adequate opportunity to the assessee as per law. 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. In case the assessee fails to appear then, no lenient view will be taken by the ld.CIT(E). :-3-: ITA. No:962/Chny/2025 7. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced in the court on 15th July, 2025 at Chennai. Sd/- Sd/- (जॉजŊ जॉजŊ क े) (GEORGE GEORGE K) उपाȯƗ /VICE PRESIDENT (एस. आर. रघुनाथा) (S. R. RAGHUNATHA) लेखा सद˟/ACCOUNTANT MEMBER चेɄई/Chennai, िदनांक/Dated, the 15th July, 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 "