SWAMI VIVEKANANDA SEVA KENDRA,KANCHIPURAM V. CIT, EXEMPTION, CHENNAI

ITA 2472/CHNY/2024

AI Insights

The case involves Swami Vivekananda Seva Kendra, which filed an appeal against the order of the Commissioner of Income Tax (Exemption) Chennai, who had rejected their application for approval under Section 10(23C)(iii) of the Income Tax Act, 1961. The rejection was based on the assessee's failure to respond to several notices requesting documents to prove the genuineness of the trust's activities. The Tribunal found that the principles of natural justice were not properly followed, as the assessee was not given an adequate opportunity to present their case. Consequently, the Tribunal remanded the case back to the CIT(E) for a fresh examination.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 29282 (ITAT-CHENNAI)
• Duration Of Justice: 2 month(s) 6 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: 18-09-2024
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: A. SASIKUMAR; IRS
• Assessee Lawyers: R.S.BALAJI
• Keywords: Set aside; Principle of natural justice
• Section: 10(23C)

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.2472/Chny/2024 Swami Vivekananda Seva Kendra, No.132, Thirumangai Alwar Street, Sriperumbudur 602 105. [PAN: AAHTS 5543F] Vs. The Commissioner of Income Tax (Exemption) Chennai. (अपीलाथȸ/Appellant) (Ĥ×यथȸ/Respondent) अपीलाथȸ कȧ ओर से/ Appellant by : Shri. R.S. Balaji, Advocate 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 22.07.2024. 2. The assessee has filed an online application on 02.01.2024 in form No.10AB under clause (iii) to first proviso to Section 10(23C) of the Income Tax Act, 1961 (in short ‘’the Act’’) seeking approval u/s.10(23C) (iii) of the Act. The ld. CIT( E) on receipt of application has directed the assessee to submit necessary documents to 2 ITA No.2472/Chny/2024 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. 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 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 in the interest of justice assessee should be given one more opportunity before the ld. CIT(E) to file necessary documents and prosecute its case. We are also conscious of the fact that the assessee has not filed the requisite response within the time frame as asked by the ld. CIT(E) as the Managing Trustee was actively involved in social service activities and also due to sudden ill health. 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 seeking approval u/s.10(23C) (iii) of the Act. The ld. CIT(E) who shall proceed for denovo adjudication of application in form No.10AB under clause (iii) to first proviso to Section 10(23C) of the Act after providing proper opportunity of hearing to the assessee. The assessee is directed to 3 ITA No.2472/Chny/2024 substantiate its case forthwith without any fail, failing which ld.CIT(E) shall be at liberty to proceed with the application 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 "