SRI KRUPA TRUST,VELLORE V. CIT, EXEMPTIONS, CHENNAI

ITA 1074/CHNY/2025

AI Insights

The case involves Sri Krupa Trust appealing against the decisions of the Commissioner of Income Tax (Exemptions), Chennai, which had rejected the Trust's applications for registration under section 12AB and for approval under section 80G(5)(iii) of the Income-tax Act, 1961. The primary reason for rejection was the non-submission of required documents and clarifications by the Trust in response to show cause notices. The Tribunal found that the Trust was not given adequate opportunity to comply and thus remitted the matters back to the CIT(E) for a fresh decision, emphasizing the principles of natural justice.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 706868 (ITAT-CHENNAI)
• Duration Of Justice: 2 month(s) 20 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-07-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: misc
• Appeal Filed On: 17-04-2025
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: BIPIN C.N
• Assessee Lawyers: T.S. LAKSHMI VENKATRAMAN
• Keywords: Opportunity of being heard; Principle of natural justice; Non compliance
• Section: 12A

Judgement Text

"आयकर अपीलीय अिधकरण, ‘सी’ \u0011ा यपीठ, चे\u0016ई। IN THE INCOME TAX APPELLATE TRIBUNAL ‘C’ BENCH: CHENNAI \u0019ी यस यस िव\u001bने रिव, \u0011ा ियक सद एवं \u0019ी जगदीश, लेखा सद क े सम' BEFORE SHRI SS VISWANETHRA RAVI, JUDICIAL MEMBER AND SHRI JAGADISH, ACCOUNTANT MEMBER आयकर अपील सं./ITA Nos.1074 & 1075/Chny/2025 Sri Krupa Trust, 1/44, Thirumalai Nagar, 1st Street, Sholinghur Town, Vellore – 631 102. Vs. The Commissioner of Income Tax (Exemptions), Chennai. [PAN: AAXTS 4426M] (अपीलाथ\u0007/Appellant) (\b यथ\u0007/Respondent) अपीला थ< की ओर से/ Appellant by : Shri T.S.Lakshmi Venkatraman, FCA >?थ< की ओर से /Respondent by : Shri Bipin C.N, CIT सुनवा ई की ता रीख/Date of Hearing : 02.07.2025 घोषणा की ता रीख /Date of Pronouncement : 07.07.2025 आदेश / O R D E R PER JAGADISH, A.M: Aforesaid appeals filed by the assessee arises out of the orders of Learned Commissioner of Income Tax (Exemption), Chennai [hereinafter “CIT(E)”] dated 10.12.2024 in rejecting approval for registration u/s. 12A(1)(ac)(iii) of the Income-tax Act, 1961 (hereinafter “the Act”). 2. There is a delay of 48 days in filing both the appeals by the assessee. The assessee has filed condonation petitions/affidavits ITA Nos.1074 & 1075/Chny/2025 Sri Krupa Trust :- 2 -: stating the reasons for delay in filing the appeals. We have considered the petitions/affidavits of delay in filing the appeals and satisfied that there was sufficient cause for not filing the appeals within the prescribed time limit. Hence, the delay is hereby condoned. ITA No.1174/Chny/2025: 3. The only ground of appeal in this appeal of the assessee is against the rejection of application filed in Form 10AB u/s. 12(1)(ac)(iii) of the Act seeking registration u/s. 12AB of the Act on the ground that the assessee has not furnished the relevant documents and clarification. The assessee has filed online application on 29.06.2024 in Form 10AB u/s. 12A(1)(ac)(iii) of the Act seeking registration u/s. 12AB of the Act. The Ld. CIT(E) issued a show cause notice/questionnaire calling for relevant documents and clarifications. However, the assessee failed to comply with the notice. Consequently, the Ld. CIT(E) rejected the application for non-submission of the required information. 3. Before us, the Ld. AR has submitted that adequate opportunity was not given to the assessee and the order is opposed to the provisions of law and principles of natural justice. The Ld. AR has also submitted the reason for non compliance before the Ld. CIT(E). The ITA Nos.1074 & 1075/Chny/2025 Sri Krupa Trust :- 3 -: Ld. AR further submitted that the Ld. CIT(E) has rejected the application for non prosecution and requested one more opportunity of hearing to file the details before the Ld. CIT(E). 6. On the other hand, the Ld. Departmental Representative (DR), has relied on the orders of lower authorities. 7. We have heard both the parties and gone through the order of the Ld. CIT(E). It is evident that the application filed by the assessee was rejected on the ground of non-compliance with the notice issued. However, the Ld. AR has now explained the reasons for such non- compliance and has assured that the assessee is ready to submit the required information. Considering the submissions and in the interest of justice, we are of the view that one more opportunity should be granted to the assessee to present its case. Accordingly, we remit the matter back to the file of the Ld. CIT(E) for fresh consideration of the application, after affording the assessee a reasonable opportunity of being heard. We also direct the assessee to appear before the Ld. CIT(E) on the date of hearing without fail and submit all the relevant documents sought for by the Ld. CIT(E). In view of the above, the appeal filed by the assessee is allowed for statistical purposes only. ITA Nos.1074 & 1075/Chny/2025 Sri Krupa Trust :- 4 -: ITA No.1075/Chny/2025: 8. In this case, the Ld. CIT(E) had rejected the assessee’s application for approval u/s. 80G(5)(iii) of the Act on the ground that the assessee had not responded to the show cause notices issued and does not have valid registration u/s. 12A of the Act. Since, we have already remitted the matter relating to registration u/s. 12A back to the file of the Ld. CIT(E) for fresh consideration, we are of the considered opinion that the issue of approval u/s. 80G(5)(iii) of the Act also requires reconsideration. Accordingly, we remit this matter as well to the file of the Ld. CIT(E) for fresh adjudication, after giving due opportunity to the assessee to clarify its objects and activities. 9. In the result, both the appeals filed by the assessee is allowed for statistical purposes. Order pronounced on 07th day of July, 2025 at Chennai. Sd/- Sd/- (यस यस िव\u001bने रिव) (SS Viswanethra Ravi) \u0001याियक \u0001याियक \u0001याियक \u0001याियक सद\bय सद\bय सद\bय सद\bय / Judicial Member (जगदीश) (Jagadish) लेखा लेखा लेखा लेखा सद\u0011य सद\u0011य सद\u0011य सद\u0011य /Accountant Member चे\u0013नई/Chennai, \u0016दनांक/Dated: 07th July, 2025. EDN/- ITA Nos.1074 & 1075/Chny/2025 Sri Krupa Trust :- 5 -: आदेश क\u0019 \bितिल प अ े षत/Copy to: 1. अपीलाथ\u0007/Appellant 2. \b थ\u0007/Respondent 3. आयकर आयु\u000f/CIT, Chennai 4. िवभागीय \bितिनिध/DR 5. गाड\u0018 फाईल/GF "