SRI IYYAPPA BHAKTHA SAMATAM CHARITABLE TRUST,CHENNAI V. CIT( EXEMPTIONS), CHENNAI, CHENNAI

ITA 2805/CHNY/2024

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The case involves Sri Iyyappa Bhaktha Samatam Charitable Trust, which appealed against the order of the Commissioner of Income Tax (Exemptions), Chennai, rejecting their applications for approval under section 80G and registration under section 12AB of the Income-tax Act, 1961. The applications were initially rejected due to non-response to notices issued by the CIT(E). The Trust contended that they did not receive these notices as required under section 282 of the Act, leading to their unawareness of the requisitions. The Tribunal found that the principles of natural justice were not followed as the order was passed without hearing the assessee, and thus decided to set aside the impugned order and restore the matter for fresh consideration.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 107020 (ITAT-CHENNAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-02-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: misc
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: NILAY BARAN SOM
• Assessee Lawyers: J. SARAVANAN
• Keywords: Set aside; Principle of natural justice; Charitable institution
• Section: 80G

Judgement Text

"आयकर अपीलीय अिधकरण, ‘ए’ \u0001यायपीठ, चे\tई। IN THE INCOME TAX APPELLATE TRIBUNAL ‘A’ BENCH: CHENNAI \u0001ी एबी टी. वक , \u000bाियक सद\u0011 एवं एवं एवं एवं \u0001ी मनोज क ुमार अ\u0019वाल, लेखा सद\u0007 क े सम\u001d BEFORE SHRI ABY T. VARKEY, JUDICIAL MEMBER AND SHRIMANOJ KUMAR AGGARWAL, ACCOUNTANT MEMBER आयकरअपीलसं./ITA Nos. 2804 & 2805/Chny/2024 िनधा\u000bरणवष\u000b/Assessment Years: - Sri IyyappaBhakthaSamatam Charitable Trust, No.141, Ramanujam Street, ALwarthirunagarAnnexe, Valasaravakkam, Tiruvallur – 600 087. v. Commissioner of Income Tax (Exemptions), Chennai. [PAN: AASTS8345N] (अपीलाथ\u000e/Appellant) (\u000f\u0010यथ\u000e/Respondent) अपीलाथ\u000e क\u0012 ओर से/ Appellant by : Mr. J. Saravanan, Advocate \u000f\u0010यथ\u000e क\u0012 ओर से /Respondent by : Mr. Nilay Baran Som, CIT सुनवाईक\u0012तारीख/Date of Hearing : 21.01.2025 घोषणाक\u0012तारीख /Date of Pronouncement : 26.02.2025 आदेश / O R D E R PER ABY T. VARKEY, JM: These appeals are preferred by the assessee trust against the order of the Learned Commissioner of Income Tax (Exemption), Chennai, (hereinafter in short \"the Ld.CIT(E)”) dated 02.09.2024 rejecting the application filed by the assessee online on 29.03.2024 in Form No.10AB under clause (iii) of first proviso to section 80G(5) of the Income-tax Act, 1961 (hereinafter in short “the Act”) seeking approval u/s. 80G of the Act and rejecting the online application dated 29.03.2024 filed in Form No.10AB u/s. 12A(1)(ac)(iii) of the Act seeking registration u/s. 12 the Act, respectively. 2. At the outset, the is a delay of ‘4’ days in filing of this and filed an affidavit explaining the cause for delay. Having gone through the affidavit filed by trustees, which explains t of the view that there are sufficient cause, which prevented the assessee from filing of appeal within the the delay of ‘4’ days and 3. At the outset, Ld.AR of the assessee submitted that the impugned order of the Ld.CIT(E) is ex attributed for doing so dated 10.07.2024 and 26.07.2024. According to the Ld.AR, the assessee didn’t receive any notice as required u/s. 282 of the Act and therefore was unaware of the requisition made by the Ld.CIT(E impugned order. Therefore, he prays that one more opportunity may be granted to the assessee’s trust. 4. Per contra, the Ld.DR giving one more innings to it. According to the Ld.DR if an opp granted to the assessee trust then cost may be imposed. ITA Nos.2804 & 2805 Sri Iyyappa Bhaktha Samatam :: 2 :: and rejecting the online application dated 29.03.2024 filed in Form No.10AB u/s. 12A(1)(ac)(iii) of the Act seeking registration u/s. 12 At the outset, the Ld.Counsel for the assessee submitted that there ’ days in filing of this appeal in ITA No. 2805/Chny/2024 filed an affidavit explaining the cause for delay. Having gone through the affidavit filed by trustees, which explains the cause for delay are sufficient cause, which prevented the assessee from filing of appeal within the time prescribed, therefore, s and proceed to adjudicate the appeal on merits. At the outset, Ld.AR of the assessee submitted that the impugned order of the Ld.CIT(E) is ex-parte qua assessee trust and the reason for doing so was that assessee didn’t respond to his notices dated 10.07.2024 and 26.07.2024. According to the Ld.AR, the assessee didn’t receive any notice as required u/s. 282 of the Act and therefore was unaware of the requisition made by the Ld.CIT(E) as impugned order. Therefore, he prays that one more opportunity may be granted to the assessee’s trust. Per contra, the Ld.DR opposes the plea of the assessee trust for giving one more innings to it. According to the Ld.DR if an opp granted to the assessee trust then cost may be imposed. 2804 & 2805/Chny/2024 Samatam Chairtable Trust and rejecting the online application dated 29.03.2024 filed in Form No.10AB u/s. 12A(1)(ac)(iii) of the Act seeking registration u/s. 12AB of Ld.Counsel for the assessee submitted that there appeal in ITA No. 2805/Chny/2024 filed an affidavit explaining the cause for delay. Having gone through he cause for delay, we are are sufficient cause, which prevented the assessee time prescribed, therefore, we condone adjudicate the appeal on merits. At the outset, Ld.AR of the assessee submitted that the impugned parte qua assessee trust and the reason was that assessee didn’t respond to his notices dated 10.07.2024 and 26.07.2024. According to the Ld.AR, the assessee didn’t receive any notice as required u/s. 282 of the Act and therefore ) as alleged in the impugned order. Therefore, he prays that one more opportunity may be opposes the plea of the assessee trust for giving one more innings to it. According to the Ld.DR if an opportunity is 5. We have heard both the parties and perused the records. noted that the assessee trust had filed an application on 29.03.2024 in Form No.10AB under clause (iii) of first proviso to section 80G(5) of the Act seeking approval under 80G of the Act and 12AB of the Act applications got rejected solely on the ground that the assessee didn’t respond to the notices issued by the Ld.CIT(E) dated 26.07.2024. According to assessee issued/served upon the assessee as required u/s. 282 of the Act therefore, it was in the dark/unaware about the requisition made by the Ld.CIT(E) and hence, couldn’t fulfill the di Since, the impugned order has been passed without hearing the assessee, there is per-se non-compliance of principle of natural justice. Hence, are of the view that one more opportunity should be granted to the assessee and therefore, we set aside the impugned order and restore the application back to the file of the Ld.CIT(E) with a direction to consider the same on its merits and pass orders in accordance to law after hearing the assessee. The assess relevant documents called for/ processing the application filed by the assessee been vigilant, cost of assessee should remit to High Court, and produce necessary proof of ITA Nos.2804 & 2805 Sri Iyyappa Bhaktha Samatam :: 3 :: We have heard both the parties and perused the records. that the assessee trust had filed an application on 29.03.2024 in under clause (iii) of first proviso to section 80G(5) of the Act seeking approval under 80G of the Act and 12AB of the Act rejected solely on the ground that the assessee didn’t respond to the notices issued by the Ld.CIT(E) dated According to assessee, the notices have not been issued/served upon the assessee as required u/s. 282 of the Act was in the dark/unaware about the requisition made by the , couldn’t fulfill the direction given by the Ld.CIT(E). Since, the impugned order has been passed without hearing the assessee, compliance of principle of natural justice. Hence, are of the view that one more opportunity should be granted to the and therefore, we set aside the impugned order and restore the application back to the file of the Ld.CIT(E) with a direction to consider on its merits and pass orders in accordance to law after hearing the assessee. The assessee is directed to be diligent and relevant documents called for/requisitioned by the Ld.CIT(E) processing the application filed by the assessee. Since, assessee has not Rs.5,000/- per appeals are imposed assessee should remit to the State Legal Aid Authority, Hon’ble Madras High Court, and produce necessary proof of depositing of the same before 2804 & 2805/Chny/2024 Samatam Chairtable Trust We have heard both the parties and perused the records. It is that the assessee trust had filed an application on 29.03.2024 in under clause (iii) of first proviso to section 80G(5) of the Act seeking approval under 80G of the Act and 12AB of the Act, which rejected solely on the ground that the assessee didn’t respond to the notices issued by the Ld.CIT(E) dated 10.07.2024 & the notices have not been issued/served upon the assessee as required u/s. 282 of the Act, was in the dark/unaware about the requisition made by the rection given by the Ld.CIT(E). Since, the impugned order has been passed without hearing the assessee, compliance of principle of natural justice. Hence, we are of the view that one more opportunity should be granted to the and therefore, we set aside the impugned order and restore the application back to the file of the Ld.CIT(E) with a direction to consider on its merits and pass orders in accordance to law after hearing e diligent and file all the by the Ld.CIT(E) for assessee has not imposed, which the the State Legal Aid Authority, Hon’ble Madras of the same before the Ld.CIT(E) and thereafter, the to law after hearing the ass 6. In the result, both the statistical purposes. Order pronounced on the Sd/- (मनोज क ुमार अ\u0019वाल (MANOJ KUMAR AGGARWAL लेखासद\u0007य/ACCOUNTANT MEMBER चे\u0003ई/Chennai, \u0005दनांक/Dated: 26th February JPV, Sr.PS आदेशक\r\u000eितिलिपअ\u0014ेिषत/Copy to 1. अपीलाथ\u0014/Appellant 2. \u0015\u0016थ\u0014/Respondent 3. आयकरआयु\u001b/CIT, Chennai / Madurai 4. िवभागीय\u0015ितिनिध/DR 5. गाड\u000bफाईल/GF ITA Nos.2804 & 2805 Sri Iyyappa Bhaktha Samatam :: 4 :: and thereafter, the Ld.CIT(E) to pass orders after hearing the assessee. both the appeals filed by the assessee Order pronounced on the 26th day of February, 2025, in Chennai. अ\u0019वाल) MANOJ KUMAR AGGARWAL) /ACCOUNTANT MEMBER Sd/ (एबी टी. (ABY T. VARKEY \tयाियकसद\u0007य/JUDICIAL MEMBER February, 2025. Copy to: , Chennai / Madurai / Salem / Coimbatore. 2804 & 2805/Chny/2024 Samatam Chairtable Trust s in accordance appeals filed by the assessee are allowed for , in Chennai. Sd/- . वक ) ABY T. VARKEY) /JUDICIAL MEMBER / Salem / Coimbatore. "