SRI NARAYANA THEERTHA EDUCATIONAL CHARITABLE TRUST,CHENNAI V. CIT (EXEMPTIONS), CHENNAI

ITA 2894/CHNY/2024

AI Insights

The case involves Sri Narayan Theertha Educational Charitable Trust, which appealed against the decision of the Commissioner of Income Tax (Exemption), Chennai, who had rejected their application for registration under Section 80G of the Income-tax Act, 1961. The initial rejection was based on the trust's failure to respond to a show cause notice. The Tribunal found that the rejection without a proper hearing was against the principles of natural justice and thus remitted the case back to the CIT(E) for a fresh decision.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 107185 (ITAT-CHENNAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-01-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: misc
• Laws Referred To: Income-tax Act, 1961, Income Tax Rules, 1962
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: M. RAJAN
• Assessee Lawyers: R. KUMAR
• Keywords: Principle of natural justice; Charitable institution
• Section: 80G

Judgement Text

"आयकर अपीलीय अिधकरण, ‘बी’ \u0011ा यपीठ, चे\u0016ई। IN THE INCOME TAX APPELLATE TRIBUNAL ‘B’ BENCH: CHENNAI \u0019ी मनु क ुमा र िग\u001eर, \u0011ा ियक सद! एवं \u0019ी जगदीश, लेखा सद! क े सम( BEFORE SHRI MANU KUMAR GIRI, JUDICIAL MEMBER AND SHRI JAGADISH, ACCOUNTANT MEMBER आयकर अपील सं./ITA No.2894/Chny/2024 Sri Narayan Theertha Educational Charitable Trust, D-19, Ramakrishna Nagar, RA Puram, Chennai-600 028. Vs. The Commissioner of Income Tax (Exemption), Chennai. [PAN: AAATS 2339G] (अपीलाथ\u0007/Appellant) (\b\tयथ\u0007/Respondent) अपीलाथ: की ओर से/ Appellant by : Shri R. Kumar, Advocate <=थ: की ओर से /Respondent by : Shri M. Rajan, JCIT सुनवाई की तारीख/Date of Hearing : 22.01.2025 घोषणा की तारीख /Date of Pronouncement : 31.01.2025 आदेश / O R D E R PER JAGADISH, A.M : Aforesaid appeal filed by the assessee arises out of the order of Learned Commissioner of Income Tax (Exemption), Chennai [hereinafter “CIT(E)”] dated 23.09.2024 in rejecting the application seeking approval for registration under clause (iii) of first proviso to Sub Section (5) of Section 80G of the Income-tax Act, 1961 (hereinafter “the Act”). ITA No.2894/Chny/2024 :- 2 -: 2. The assessee has filed an application dated 31.03.2024 in Form 10AB under Rule 11AA of the Income Tax Rules, 1962 seeking approval for registration under clause (iii) of first proviso to Sub Section (5) of Section 80G. The Ld. CIT(E) has issued show cause notice on 19.09.2024 as to why the application dated 31.03.2024 in Form 10AB should not be rejected. The assessee asked for adjournment, however the Ld. CIT(E) rejected the application, as the assessee has failed to submit an explanation in response to the show cause notice holding it religious cum charitable trust. 3. The Ld. Authorized Representative (A.R) of the assessee has submitted that Ld. CIT(E) has rejected the application without assessee submitting reply to the show cause notice therefore, one more opportunity may be provided to substantiate his case before Ld. CIT(E). 4. The Ld. Departmental Representative (DR), on the other hand, has relied on the orders of the Ld. CIT(E) . 5. We have heard the rival contentions, perused the materials available on record. On perusal of the order of Ld. CIT(E), we find that the Ld. CIT(E) has rejected the application in Form 10AB under Rule 11AA of the Income Tax Rules, 1962 seeking approval for registration ITA No.2894/Chny/2024 :- 3 -: under clause (iii) of first proviso to Sub Section (5) of Section 80G of the Act as the assessee has failed to furnish any explanation of the showcause. The Ld. A.R has submitted that the Ld. CIT(E) has rejected the application without providing an opportunity to the assessee and, therefore it is requested that the case may be remanded back to the Ld. CIT(E) for fresh adjudication. We are of the opinion that keeping in view the principles of natural justice, the assessee be provided with another opportunity of hearing to substantiate his case before the Ld. CIT(E). Accordingly, we set aside the order passed by the Ld. CIT(E) and remit the matter back to the file of the Ld. CIT(E) to adjudicate this issue afresh in accordance with law. We also direct the assessee to appear before the Ld. CIT(E) on the date of hearing without fail and furnish complete details for his fresh consideration. In view of the above, the appeal filed by the assessee is allowed for statistical purposes only. 6. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced on 31st January, 2025. Sd/- Sd/- (मनु क ुमार िग\u001eर) (Manu Kumar Giri) \u0011ाियक सद! / Judicial Member (जगदीश) (Jagadish) लेखा लेखा लेखा लेखा सद\u0011य सद\u0011य सद\u0011य सद\u0011य /Accountant Member चे\u0013नई/Chennai, \u0016दनांक/Dated: 31st January, 2025. EDN/- ITA No.2894/Chny/2024 :- 4 -: 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 "