SPIA CHARITABLE TRUST,KOTTAYAM V. CIT(E), KOCHI

ITA 650/COCH/2024

AI Insights

The case involves SPIA Charitable Trust, which appealed against the order of the Commissioner of Income Tax (Exemption) rejecting their application for provisional approval under section 80G of the Income Tax Act, 1961. The Trust, established for various charitable activities, faced a procedural setback when their application was rejected due to non-response to a show cause notice. The Tribunal noted the inadequacy of the response time provided to the Trust and remanded the case for a new hearing, ensuring compliance with legal standards of notice and opportunity.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 47287 (ITAT-COCHIN)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-04-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: DB
• Assessment Year: 2024-2025
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: SANJIT KUMAR DAS
• Assessee Lawyers: JACOB BABOO
• Keywords: Condonation of delay; Set aside; Principle of natural justice; Charitable institution
• Section: 12AA; 80G

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL COCHIN BENCH BEFORE SHRI GEORGE GEORGE K., VP AND SHRI INTURI RAMA RAO, AM ITA No. 650/Coch/2024 Assessment Year: 2024-25 SPIA Charitable Trust .......... Appellant Building No. XIV/195A, Kottayam Municipality, Kodimatha Old MC Road Kottayam 6860013 [PAN: AAWTS4128H] vs. Commissioner of Income Tax (Exemption) .......... Respondent Aayakar Bhavan, old Railway Sation Road Ernakulam 682018 Appellant by: Shri Jacob Baboo, CA Respondent by: Shri Sanjit Kumar Das, CIT-DR Date of Hearing: 01.04.2025 Date of Pronouncement: 08.04.2025 O R D E R Per: Inturi Rama Rao, AM This appeal filed by the assessee is directed against the order of the Commissioner of Income Tax (Exemption), Kochi dated 29.04.2024 for Assessment Year (AY) 2024-25 u/s. 80G of Income Tax Act, 1961 (hereinafter \"the Act\"). 2. Brief facts of the case are that the appellant is a public charitable trust duly incorporated under the Trust Act on 2 ITA No. 650/Coch/2024 SPIA Charitable Trust 94.09.2018. It was founded with the object of undertaking charitable activities relating to education, healthcare, social welfare, rehabilitation, disaster relief, rural development, environmental protection and empowerment of disadvantage individuals. The appellant trust was registered u/s. 12AA of the Act on 09.12.2020 and subsequently it was granted registration u/s. 12AC for a period of 4 years vide proceedings dated 31.05.2023 issued by Commissioner of Income Tax (Exemption), Kochi. The appellant trust was also granted provisional approval u/s. 80G, under clause (iii) of first proviso to sub-section (5) of section 80G of the Act in Form 10AB on 01.01.2023. The said application came to be rejected vide order dated 29.05.2024 on the ground that the appellant failed to offer explanation to the show cause notice dated 03.04.2024. 3. Being aggrieved, the appellant is in appeal before us in the present appeal. 4. At the outset we find that there is delay in filing the appeal by 26 days. The appellant had filed an affidavit seeking condonation of delay on the ground that the delay that occurred on account of hospitalisation of one of the trustees, Shri K.T. Mathews. In the absence of any material contrary to the averments made in the affidavit, we are of the considered opinion that it is a fit case to condone the delay and admit the appeal for adjudication on merits. 3 ITA No. 650/Coch/2024 SPIA Charitable Trust 5. We have heard the rival contentions and perused the material available on record. We find that the learned CIT(A) issued a show cause notice dated 03.04.2024 requiring the appellant to submit explanation on the issued raised by him on or before 11.04.2024. On receipt of the said notice, the appellant filed a letter dated 11.04.2024 seeking extension of time to respond to the notice. However, the learned CIT(A) rejected the explanation and proceeded to reject the application vide order dated 23.04.2024. We had carefully perused the impugned order and find that the show cause noticed was issued on the appellant on 03.04.2024 requiring the appellant to file the explanation on or before 12.04.2024. From the material on record, it is not clear as to when the show cause notice was served upon the appellant. This would clearly indicate that no reasonable opportunity was given to the appellant to comply with the show cause notice by granting unreasonable short time to respond to the show cause notice. In terms of section SOP issued by the Department, minimum period of 15 days should be granted to the assessee to comply with any notice. Therefore, this order passed by the Commissioner of Income Tax (Exemption) is unreasonable and against the principals of natural justice. Therefore, the order of the Commissioner of Income Tax (Exemption) is set aside and matter remanded to the file of the Commissioner of Income Tax (Exemption) for de novo disposal in accordance with law affording reasonable opportunity of hearing to the appellant. We make it clear 4 ITA No. 650/Coch/2024 SPIA Charitable Trust the all the contentions made before us are kept open before he Commissioner of Income Tax (Exemption). 6. In the result, appeal filed by the assessee is partly allowed. Order pronounced in the open court on 8th April, 2025. Sd/- Sd/- (GEORGE GEORGE K.) VICE PERSIDENT (INTURI RAMA RAO) ACCOUNTANT MEMBER Cochin, Dated: 8th April, 2025 n.p. Copy to: 1. The Appellant 2. The Respondent 3. The Pr. CIT concerned 4. The Sr. DR, ITAT, Cochin 5. Guard File Assistant Registrar ITAT, Cochin "