SOCIETY OF MAGIS,CHENNAI V. .CIT,EXEMPTIONS, CHENNAI

ITA 2619/CHNY/2024

AI Insights

The case involves the Society of Magis, which appealed against the decision of the Commissioner of Income Tax (Exemption), Chennai, who had rejected their application for registration under section 10(23C) of the Income-tax Act, 1961. The rejection was based on the incorrect mention of 'religious' activities in the application form, whereas the society's objectives primarily focus on education, healthcare, and poverty alleviation, without engaging in religious activities. The Tribunal recognized the mistake as inadvertent and not reflective of the society's actual objectives, leading to the decision to remit the case back to the CIT(E) for a fresh evaluation.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 107245 (ITAT-CHENNAI)
• Duration Of Justice: 1 month(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-12-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: misc
• Appeal Filed On: 14-10-2024
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: R. CLEMENT RAMESH KUMAR
• Assessee Lawyers: P. CHIDAMBARAM
• Keywords: Charitable institution
• Section: 10(23C)

Judgement Text

"आयकर अपीलीय अिधकरण, ‘सी’ \u0011ा यपीठ, चे\u0016ई। IN THE INCOME TAX APPELLATE TRIBUNAL ‘C’ BENCH: CHENNAI \u0019ी जॉज\u001c जॉज\u001c क े, उपा \u001e\u001f एवं \u0019ी जगदीश, लेखा सद' क े सम\u001f BEFORE SHRI GEORGE GEORGE K, VICE PRESIDENT AND SHRI JAGADISH, ACCOUNTANT MEMBER आयकर अपील सं./ITA No.2619/Chny/2024 Society of Magis, C-20 KP Tower 159, Arcot Road, Vadapalani, Mambalam Taluk, Chennai – 600 026. Vs. The Commissioner of Income Tax (Exemption), Chennai. [PAN: ABOAS 0887M] (अपीलाथ\u0007/Appellant) (\b\tयथ\u0007/Respondent) अपीला थ; की ओर से/ Appellant by : Shri P.Chidambaram, Advocate =>थ; की ओर से /Respondent by : Shri R.Clement Ramesh Kumar, CIT सुनवा ई की ता रीख/Date of Hearing : 12.12.2024 घोषणा की ता रीख /Date of Pronouncement : 13.12.2024 आदेश / O R D E R PER JAGADISH, A.M : Aforesaid appeal filed by the assessee is against the order of Learned Commissioner of Income Tax (Exemption), Chennai [hereinafter “CIT(E)”] dated 19.08.2024 rejecting approval for registration u/s. 10(23C)(iv)(B) of the Income-tax Act, 1961 (hereinafter “the Act”). ITA No.2619/Chny/2024 :- 2 -: 2. The effective ground of appeal in this appeal of assessee is against the rejection of application filed in Form No.10AB seeking approval u/s. 10(23C) of the Act on the ground mentioning religious in column No.5 of Form 10AB. 3. The assessee-society has filed online application on 12.12.2024 in Form No.10AB seeking approval for registration u/s. 10(23C) of the Act. The Ld. CIT(E) has rejected the application as the assessee in Form No.10AB at column No.5 has mentioned one of the objects as “religious”. The assessee before the Ld. CIT(E) has submitted that the assessee-society has been established with the primary objective of supporting education, healthcare, poverty alleviation and is not engaged in any religious activity as apparent from the objects of the trust. The Ld. CIT(E) however has rejected the application as religious was mentioned in coloumn No.5 and form was duly signed. 4. The Ld. Authorized Representative (A.R) of the assessee has submitted that while filing Form No.10AB in column No.5 objects of the trust, it has been inadvertently mentioned religious along with other activities of the trust. The ld. AR has submitted copy of memorandum of association in support of his contention that assessee’s objects ITA No.2619/Chny/2024 :- 3 -: nowhere mentions religious. The Ld AR submitted that wrong filing in Form No.10AB was inadvertent and therefore, one more opportunity should be provided to the assessee to prove his case before Ld. CIT(E). 5. The Ld. Departmental Representative (DR), on the other hand, supported the order of the Ld. CIT(E). 6. We have heard the rival submissions, and perused the materials available on record. The Ld. CIT(E) has rejected the application filled Form No.10AB seeking registration u/s. 10(23C) of the Act, for the reason that the assessee in column 5 of Form No. 10AB has mentioned the objects as religious. The Ld. AR has submitted that the assessee is not a religious trust and the trust deed clearly stipulates that the assessee is a charitable trust to promote various charitable activities irrespective of caste, creed and gender or religion. The Ld AR submitted that assessee has inadvertently filed “religious” in column No.5 of Form No.10AB in place of charitable which is evident from the trust deed. We are of opinion that the assessee should not suffer from the inadvertent mistake in filling the form. We, therefore set aside the order of Ld. CIT(E) and remit the matter back to the file of Ld. CIT(E) to decide the application afresh after providing proper ITA No.2619/Chny/2024 :- 4 -: opportunity to the assessee. Thus, the appeal filed 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 13th December, 2024. Sd/- Sd/- (जॉज\u001c जॉज\u001c क े) (Goerge Goerge K) उपा \u001e\u001f / Vice President (जगदीश) (Jagadish) लेखा लेखा लेखा लेखा सद\u0011य सद\u0011य सद\u0011य सद\u0011य /Accountant Member चे\u0013नई/Chennai, \u0016दनांक/Dated: 13th December, 2024. EDN/- आदेश क\u0019 \bितिल\u001cप अ\u001dे\u001cषत/Copy to: 1. अपीलाथ\u0007/Appellant 2. \b\tथ\u0007/Respondent 3. आयकर आयु\u000f/CIT, Chennai 4. िवभागीय \bितिनिध/DR 5. गाड\u0018 फाईल/GF "