SRI SUKAR PUBLIC CHARITABLE TRUST,CHENNAI V. CIT, EXEMPTIONS, CHENNAI

ITA 1698/CHNY/2024

AI Insights

The case involves Sri Sukar Public Charitable Trust appealing against the decision of the CIT (Exemptions), Chennai, which rejected their application filed in Form 10AB under section 80G of the Income Tax Act, 1961. The application was initially for the renewal of approval for tax exemptions under section 80G, which was inadvertently filed prematurely. The CIT (Exemptions) not only rejected this application but also cancelled the previously granted approval without notice. The tribunal held that the cancellation was improper and restored the original approval.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 35637 (ITAT-CHENNAI)
• Duration Of Justice: 4 month(s) 10 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-10-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 21-08-2024
• Assessment Year: misc
• Appeal Filed On: 07-06-2024
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: NILAY BARAN SOM
• Assessee Lawyers: D.ANAND
• Keywords: Set aside; Charitable institution

Judgement Text

"आयकर अपील\tय अ धकरण, ‘ए’ \u000eयायपीठ, चे\u000eनई। 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 SHRI MANOJ KUMAR AGGARWAL, ACCOUNTANT MEMBER आयकर अपील सं./ITA No.1698/Chny/2024 \u0018नधा\u0019रण वष\u0019/Assessment Year: - Sri Sukar Public Charitable Trust, New No.29, Old No.13A, V Trust Cross Street, Mandavellipakkam, Chennai-600 028. v. The CIT (Exemptions), Chennai. [PAN: AAETS 0291 D] (अपीलाथ\u001d/Appellant) (\u001e\u001fयथ\u001d/Respondent) अपीलाथ\u001d क ओर से/ Appellant by : Mr.D. Anand, Advocate \u001e\u001fयथ\u001d क ओर से /Respondent by : Mr. Nilay Baran Som, CIT सुनवाईक तार\tख/Date of Hearing : 21.08.2024 घोषणाक तार\tख /Date of Pronouncement : 18.10.2024 आदेश / O R D E R PER ABY T. VARKEY, JM: This is an appeal preferred by the assessee against the order of the Learned Commissioner of Income Tax (Exemptions)/NFAC, (hereinafter in short \"theLd.CIT(A)”), Chennai, dated 09.04.2024 rejecting the application filed by the assessee on 03.10.2023 in Form 10AB under clause (ii) of first proviso to sec.80G of the Income Tax Act, 1961 (hereinafter in short \"the Act”). ITA No.1698/Chny/2024 (AY -) Sri Sukar Public Charitable Trust :: 2 :: 2. At the outset, the Ld.AR of the assessee brought to our notice that the assessee is an old Charitable Trust which was enjoying approval u/s.80G of the Act and pursuant to the new regime of taxation, the assessee had filed online application for registration for five years which was granted under clause (i) of first proviso to sub-sec.5 of sec.80G on 14.10.2021 for AYs 2022-23 to 2026-27. However, inadvertently the assessee filed another application on 03.10.2023 in Form 10AB under clause (ii) of first proviso to sec.80G(5) of the Act which application has been rejected by the Ld.CIT(E) on the ground that such an application is filed for renewal of approval u/s.80G of the Act (for further period of five years and such an application needs to be filed only six months prior to the expiry of the period already granted). According to the Ld.CIT(E), since the assessee failed to submit along with the application for approval u/s.80G of the Act, (i) copy of the approval already granted for a period of five years and (ii) furnish certain documents called for by him, he was pleased to reject the application dated 03.10.2023 and went one step ahead to cancel the approval granted earlier by the department on 14.10.2021, without prior notice. We don’t countenance this impugned action of the Ld.CIT(E). We note that the assessee Trust is an old trust and has already been granted approval on 14.10.2021 from AYs 2022-23 to 2026-27 and therefore, had to necessarily file the ibid application under clause (ii) of first proviso to sec.80G(5) of the Act only before ITA No.1698/Chny/2024 (AY -) Sri Sukar Public Charitable Trust :: 3 :: expiry of six months of AY 2026-27, and instead, the assessee has filed it inadvertently on 03.10.2023, which application was per-se premature. 3. And since, the assessee is enjoying the approval u/s.80G(5)(i) of the Act for five years from AYs 2022-23 to 2026-27, the ibid application filed by assessee inadvertently on 03.10.2023 is held to be premature and therefore, infructuous; and since the Ld.CIT(E) has cancelled the earlier approval granted on 14.10.2021 without prior notice/granting opportunity of hearing, it is held to be bad in law, and so we set aside the same and direct the Ld.CIT(E) to restore the approval granted on 14.10.2021 for five years [i.e., AYs 2022-23 to 2026-27]. 4. In the result, appeal filed by the assessee is allowed. Order pronounced on the 18th day of October, 2024, in Chennai. Sd/- (मनोज क ुमार अ\u0019वाल) (MANOJ KUMAR AGGARWAL) लेखा सद*य/ACCOUNTANT MEMBER Sd/- (एबी टी. वक ) (ABY T. VARKEY) \u000eया\u0018यक सद*य/JUDICIAL MEMBER ITA No.1698/Chny/2024 (AY -) Sri Sukar Public Charitable Trust :: 4 :: चे\u000eनई/Chennai, +दनांक/Dated: 18th October, 2024. TLN, Sr.PS आदेश क \u001e\u0018त,ल-प अ.े-षत/Copy to: 1. अपीलाथ\f/Appellant 2. \r\u000eथ\f/Respondent 3. आयकरआयु\u0014/CIT, Chennai / Madurai / Salem / Coimbatore. 4. िवभागीय\rितिनिध/DR 5. गाड\u001dफाईल/GF "