SHREE LAKSHMI TRUST,MADURAI V. CIT, EXEMPTIONS, CHENNAI

ITA 2954/CHNY/2024

AI Insights

The case involves Shree Lakshmi Trust, which appealed against the order of the Commissioner of Income Tax (Exemptions), Chennai, rejecting their application for approval under clause (iii) of the first proviso to section 80G(5) of the Income Tax Act, 1961. The Tribunal found that the assessee was not given adequate opportunity to provide necessary details in response to a show-cause notice, which led to the initial rejection of their application. The Tribunal decided to remand the case back to the CIT(E) for a fresh evaluation, allowing the appeal for statistical purposes.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 107571 (ITAT-CHENNAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-01-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: C
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: R. CLEMENT RAMESH KUMAR
• Assessee Lawyers: GIRISH KUMAR
• Keywords: Condonation of delay
• Section: 80G

Judgement Text

"आयकर अपीलीय अिधकरण, ’सी’ Ɋायपीठ, चेɄई IN THE INCOME-TAX APPELLATE TRIBUNAL ‘C’ BENCH, CHENNAI ŵी एस.एस. िवʷनेũ रिव, Ɋाियक सद˟ एवं ŵी अिमताभ शुƑा, लेखा सद˟ क े समƗ Before Shri S.S. Viswanethra Ravi, Judicial Member & Shri Amitabh Shukla, Accountant Member आयकर अपील सं./I.T.A. No.2954/Chny/2024 Shree Lakshmi Trust, 108/111, Sedapatti Road, Tirali B.O. Tirali, Madurai 625 706. [PAN:ABBTS3551J] Vs. The Commissioner of Income Tax [Exemptions], Chennai. (अपीलाथŎ/Appellant) (ŮȑथŎ/Respondent) अपीलाथŎ की ओर से / Appellant by : Shri Girish Kumar, Advocate ŮȑथŎ की ओर से/Respondent by : Shri R. Clement Ramesh Kumar, CIT सुनवाई की तारीख/ Date of hearing : 22.01.2025 घोषणा की तारीख /Date of Pronouncement : 23.01.2025 आदेश /O R D E R PER S.S. VISWANETHRA RAVI, JUDICIAL MEMBER: This appeal filed by the assessee is directed against the order dated 15.04.2024 passed by the ld. Commissioner of Income Tax (Exemption), Chennai in rejecting the application filed in Form 10AB under clause (iii) of first proviso to section 80G(5) of the Income Tax Act, 1961 [“Act” in short]. 2. We find that this appeal is filed with a delay of 144 days. The assessee filed an affidavit for condonation of delay stating the reasons. Upon hearing both the parties and on examination of the said affidavit, we I.T.A. No.2954/Chny/24 2 find the reasons stated by the assessee are bonafide, which really prevented in filing the appeal in time. Thus, the delay is condoned and admitted the appeal for adjudication. 3. The assessee raised 8 grounds of appeal amongst which, the only issue emanates for our consideration as to whether the ld. CIT(E) is justified in rejecting the application filed in Form 10AB seeking approval under clause (iii) of first proviso to section 80G(5) of the Act. 4. We note that the assessee filed online application on 09.10.2023 in Form No. 10AB seeking approval under clause (iii) of first proviso to section 80G(5) of the Act. The ld. CIT(E), while processing the application, asked the assessee to show-cause as to why its application should not be rejected on account of reasons mentioned in para 2 & 3 of the impugned order. For having no such details, the ld. CIT(E) rejected the application of the assessee. 5. The ld. AR Shri Girish Kumar, Advocate submits that the assessee trust was not given sufficient opportunity for filing relevant details as required by the ld. CIT(E). He further submits that the assessee is ready to file all relevant details in response to the show- cause notice issued by the ld. CIT(E) and prayed that one more I.T.A. No.2954/Chny/24 3 opportunity may be afforded to the assessee to pursue its case before the ld. CIT(E). 6. The ld. DR Shri R. Clement Ramesh Kumar, CIT opposed the same. 7. On perusal of para 3 and 4 of the impugned order, we note that the ld. CIT(E) proceeded to reject the application seeking approval under section 80G of the Act for non-compliance of furnishing details in response to the show-cause notice, thereby, clearly establishes that the assessee has no opportunity before the ld. CIT(E). Taking into consideration the submissions of the ld. AR and the ld. DR and in the interest of justice, we deem it proper to remand the matter back to the file of the ld. CIT(E) for fresh consideration. Thus, the ground raised by the assessee is allowed for statistical purposes. 8. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced on 23rd January, 2025 at Chennai. Sd/- Sd/- (AMITABH SHUKLA) ACCOUNTANT MEMBER (S.S. VISWANETHRA RAVI) JUDICIAL MEMBER Chennai, Dated, 23.01.2025 I.T.A. No.2954/Chny/24 4 Vm/- आदेश की Ůितिलिप अŤेिषत/Copy to: 1. अपीलाथŎ/Appellant, 2.ŮȑथŎ/ Respondent, 3. आयकर आयुƅ/CIT, Chennai/Madurai/Coimbatore/Salem 4. िवभागीय Ůितिनिध/DR & 5. गाडŊ फाईल/GF. "