SISTER NIVEDITA MISSION TRUST,TENKASI V. CIT(EXEMPTION), CHENNAI, CHENNAI

ITA 620/CHNY/2025

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The case involves Sister Nivedita Mission 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 initially based on an exparte order due to the trust's non-compliance with a show-cause notice. The Tribunal considered the trust's previous compliance with other notices and the circumstances that led to the non-compliance with the specific show-cause notice in question. The Tribunal decided to remand the case, allowing the trust another opportunity to present its case.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 781211 (ITAT-CHENNAI)
• Duration Of Justice: 7 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-10-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: A
• Assessment Year: misc
• Appeal Filed On: 28-02-2025
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: R. CLEMENT RAMESH KUMAR
• Assessee Lawyers: K. VISHWA PADMANABHAN
• Keywords: Opportunity of being heard
• Section: 12A

Judgement Text

"आयकर अपीलीय अिधकरण, ’ए’ Ɋायपीठ, चेɄई IN THE INCOME-TAX APPELLATE TRIBUNAL ‘A’ BENCH, CHENNAI ŵी एस.एस. िवʷनेũ रिव, Ɋाियक सद˟ एवं ŵी रȉेश नंदन सहाय, लेखा सद˟ क े समƗ Before Shri S.S. Viswanethra Ravi, Judicial Member & Shri Ratnesh Nandan Sahay, Accountant Member आयकर अपील सं./I.T.A. No.620/Chny/2025 Sister Nivedita Mission Trust, 121, Santhamoorthy Street, Melapalayam Bazaar, Palayamkottai, Tamil Nadu 627 005. [PAN:AAETS9316H] Vs. The Commissioner of Income Tax (Exemption), Chennai. (अपीलाथŎ/Appellant) (ŮȑथŎ/Respondent) अपीलाथŎ की ओर से / Appellant by : Shri K. Vishwa Padmanabhan, C.A. ŮȑथŎ की ओर से/Respondent by : Shri R. Clement Ramesh Kumar, CIT सुनवाई की तारीख/ Date of hearing : 23.09.2025 घोषणा की तारीख /Date of Pronouncement : 22.10.2025 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 26.12.2024 passed by the ld. Commissioner of Income Tax (Exemption), Chennai. 2. The assessee raised 4 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 seeking registration under section 12AB of the Income Tax Act, 1961 [“Act” in short] by passing exparte order in the facts and circumstances of the case. Printed from counselvise.com I.T.A. No.620/Chny/25 2 3. We note that the assessee filed an application dated 29.06.2024 in Form 10AB under Rule 17A of the IT Rules, 1962 seeking registration under item (iii) of clause (ac) of sub-section (1) of section 12A of the Act. In order to process the application under section 12AB of the Act, various details were called for along with questionnaire on 05.09.2024. In response, the assessee filed its submissions on 19.09.2024. Upon noticing certain irregularities/inconsistencies/ anomalies, the ld. CIT(E) issued show cause notice dated 13.11.2024 and extracted the contents in the show-cause notice at para 3 of the impugned order. Since the assessee did not comply with the show-cause notice issued on 12.11.2014, the ld. CIT(E) rejected the application From 10AB filed under section 12A(1)(ac)(iii) of the Act seeking registration under section 12AB of the Act by holding that the activities of the trust cannot be held as education, relief of poor and ultimately charitable as defined in section 2(15) of the Act. 4. The ld. AR Shri K. Vishwa Padmanabhan, C.A. drew our attention to para 3 of the impugned order and submits that the assessee filed its submissions on 19.09.2024 against the notice issued on 05.09.2024. Further, he drew our attention to para 3.3 of the impugned order and submits that in response to the show-cause notice dated 29.06.2024, the Printed from counselvise.com I.T.A. No.620/Chny/25 3 assessee has also furnished its reply on 18.11.2024 and 03.12.2024, but, however, due to circumstances beyond its control, the assessee trust did not file the explanation against the show-cause notice issued on 12.11.2024 by the ld. CIT(E). He undertakes that the assessee-trust is ready to furnish explanation along with supporting documents before the ld. CIT(E), if this Tribunal afford an opportunity by remanding the matter to the file of the ld. CIT(E). 5. The ld. DR Shri R. Clement Ramesh Kumar, CIT drew our attention to para 4.6 of the impugned order and submits that the ld. CIT(E) afforded opportunity to the assessee and objected for remanding the matter to the file of the ld. CIT(E). 6. Heard both the parties and perused the material available on record. Considering the submissions of the ld. AR and the ld. DR as well as on perusal of the impugned order, we note that the assessee has promptly furnished various details against the notice/show-cause notice issued by the ld. CIT(E), but, however, did not file explanation with supporting documents against the show-cause notice dated 12.11.2024. Considering the undertaking given by the ld. AR, we deem it proper to remand the matter to the file of the ld. CIT(E) to afford one more opportunity of being heard to the assessee and decide the application in Printed from counselvise.com I.T.A. No.620/Chny/25 4 Form 10AB filed under section 12A(1)(ac)(iii) of the Act seeking registration under section 12AB of the Act afresh in accordance with law. Thus, the ground raised by the assessee is allowed for statistical purposes. 7. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced on 22nd October, 2025 at Chennai. Sd/- Sd/- (RATNESH NANDAN SAHAY) ACCOUNTANT MEMBER (S.S. VISWANETHRA RAVI) JUDICIAL MEMBER Chennai, Dated, 22.10.2025 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. Printed from counselvise.com "