SRI PREMIKA SEVA SAMITHI,THANJAVUR V. CIT, EXEMPTION, CHENNAI

ITA 2469/CHNY/2024

AI Insights

The case involves Sri Premika Seva Samithi, an appellant, who sought registration under section 12AB of the Income Tax Act, 1961, but faced rejection from the Commissioner of Income Tax (Exemption), Chennai. The CIT(E) had rejected the application due to non-response from the assessee to several notices requesting documentation to prove the genuineness of the trust's activities. The Tribunal found that the CIT(E) had not adequately followed the principles of natural justice, particularly criticizing the short notice period given to the assessee to respond. Consequently, the Tribunal remanded the case back to the CIT(E) for a thorough re-evaluation with proper hearing.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 472432 (ITAT-CHENNAI)
• Duration Of Justice: 2 month(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-11-2024
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: D
• Next Hearing Date: 21-11-2024
• Assessment Year: misc
• Appeal Filed On: 20-09-2024
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: A. SASIKUMAR; IRS
• Assessee Lawyers: S.DARSHAN BOTHRA
• Keywords: Set aside; Principle of natural justice

Judgement Text

" आयकर अपीलीय अिधकरण ‘डी’’ Ɋायपीठ चेɄई मŐ। IN THE INCOME TAX APPELLATE TRIBUNAL ‘D’ BENCH, CHENNAI माननीय ŵी मनोज क ुमार अŤवाल ,लेखा सद˟ एवं माननीय ŵी मनु क ुमार िगįर, Ɋाियक सद˟ क े समƗ। BEFORE HON’BLE SHRI MANOJ KUMAR AGGARWAL, ACCOUNTANT MEMBER AND HON’BLE SHRI MANU KUMAR GIRI, JUDICIAL MEMBER आयकरअपील सं./ ITA No.2469/Chny/2024 Sri Premika Seva Samithi, 1152, 5th Street, Palaniswamy Nagar, Melakaveri H.O., Kumbakonam, Thanjavur 612002. [PAN: AAABN 0049G] Vs. The Commissioner of Income Tax (Exemption) Chennai 600 034. (अपीलाथȸ/Appellant) (Ĥ×यथȸ/Respondent) अपीलाथȸ कȧ ओर से/ Appellant by : Shri. S.Darshan Bothra, C.A., Ĥ×यथȸ कȧ ओर से /Respondent by : Shri. A. Sasikumar, IRS, CIT. सुनवाई कȧ तारȣख/Date of Hearing : 21.11.2024 घोषणा कȧ तारȣख /Date of Pronouncement : 25.11.2024 आदेश / O R D E R PER MANU KUMAR GIRI (Judicial Member) This appeal filed by the assessee is arising out of the order of the Ld. Commissioner of Income Tax (Exemption) Chennai (in short ‘’the Ld. CIT (E)’’) dated 24.07.2024. 2. The assessee has filed an online application on 01.02.2024 in form No.10AB u/s.12A(1) (ac) (iii) of the Income Tax Act, 1961 ( in short ‘’the Act’’) seeking 2 ITA No.2469/Chny/2024 registration u/s.12AB of the Act. The ld. CIT(E) on receipt of application for registration has directed the assessee to submit necessary documents to prove the genuineness of activities of the trust. Ld. CIT(E) has issued several notices, however there was no response from assessee. Hence, the ld. CIT(E) rejected the application and cancelled the registration. Aggrieved, assessee preferred an appeal before us. 3. Before us, ld. Counsel for the appellant submitted that the ld. CIT(E) had not properly followed the principles of natural justice in true spirit. Ld. Counsel for the appellant further submitted that notice dated 05.07.2024 was issued with a direction to furnish the details by 10.07.2024, i.e within a short period of five days. Ld. Counsel prayed that if an adequate opportunity of hearing is given before the ld. CIT(E), assessee will prosecute the case properly. Per contra, the Ld. CIT-DR pleaded for dismissal of the appeal on the ground that the assessee failed to appear before the CIT(E). 4. We have gone through the order of CIT(E) and submissions addressed by both the parties. We are of the considered view that to meet the ends of the justice assessee should be given one more opportunity before the ld. CIT(E) since the time gap given by the ld. CIT(E) to furnish the details is only five days. Therefore, in the light of aforesaid factual position we deem it fit to set aside this appeal to the file of ld. CIT(E) for denovo adjudication of application for registration. The ld. CIT(E) who shall proceed for denovo adjudication of application in form 3 ITA No.2469/Chny/2024 10AB u/s.12A(1)(ac)(iii) of the Act after providing proper opportunity of hearing to the assessee. The assessee is directed to substantiate its case forthwith without any fail, failing which ld.CIT(E) shall be at liberty to proceed with the application of registration filed in form 10AB as per law. 5. In the result, the appeal of the assessee is allowed for statistical purpose. Order pronounced in the open court on 25th day of November, 2024 at Chennai. Sd/- Sd/- (मनोज क ुमार अŤवाल) (मनु क ुमार िगįर) (MANOJ KUMAR AGGARWAL) लेखा सद˟ / ACCOUNTANT MEMBER (MANU KUMAR GIRI) Ɋाियक सद˟ / JUDICIAL MEMBER चेɄई Chennai: िदनांक Dated : 25-11-2024 KV आदेश कȧ ĤǓतͧलͪप अĒेͪषत /Copy to : 1. अपीलाथŎ/Appellant 2. ŮȑथŎ/Respondent 3. आयकरआयुƅ/CIT, Chennai/Coimbatore/Madurai/Salem. 4. िवभागीयŮितिनिध/DR 5. गाडŊफाईल/GF "