T.C. TRUST,CHENNAI V. CIT, EXEMPTIONS, CHENNAI

ITA 1147/CHNY/2025

AI Insights

The case involves T C Trust, a Public Charitable Trust, which filed an appeal against the order of the Commissioner of Income Tax (Exemptions), Chennai, rejecting their application for registration under section 12AB of the Income Tax Act, 1961. The rejection was based on the technical ground that the application was filed under an incorrect section due to a technical glitch. The Tribunal found that the assessee should have been given an opportunity to rectify the mistake before the rejection of the application. The Tribunal's decision emphasized the importance of allowing a chance to correct inadvertent errors in procedural filings.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 706066 (ITAT-CHENNAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-06-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: BIPIN C.N
• Assessee Lawyers: KUMAR
• Keywords: Set aside; Charitable institution

Judgement Text

"आयकर अपीलीय अधिकरण, ’सी’ न्यायपीठ, चेन्नई। IN THE INCOME TAX APPELLATE TRIBUNAL ‘C’ BENCH: CHENNAI माननीय श्री मनु क ुमार धिरर ,न्याधयक सदस्य एवं माननीय श्री अमिताभ शुक्ला, लेखा सदस्य क े सिक्ष BEFORE HON’BLE SHRI MANU KUMAR GIRI, JUDICIAL MEMBER AND HON’BLE SHRI AMITABH SHUKLA, ACCOUNTANT MEMBER आयकर अपील सं./ITA No.1147/Chny/2025 Assessment Years: - T C Trust, No.1, Thiruvenkadam, D’Silva Road, Mylapore, Chennai – 600 004. [PAN: AAATT7366E] Commissioner of Income Tax (Exemptions), Chennai (अपीलार्थी/Appellant) (प्रत्यर्थी/Respondent) अपीलार्थी की ओर से/ Assessee by : Mr.Kumar, Advocate, प्रत्यर्थी की ओर से /Revenue by : Mr.Bipin C.N, CIT सुनवाई की तारीख/Date of Hearing : 18.06.2025 घोषणा की तारीख /Date of Pronouncement : 30.06.2025 आदेश / O R D E R PER MANU KUMAR GIRI, JM: This appeal at the instance of the assessee is directed against order of CIT(E) dated 07.03.2025, rejecting Form No.10AB filed for seeking registration u/s.12AB of the Income Tax Act, 1961 (hereinafter the ‘Act’). 2. Brief facts of the case are that the assessee is a Public Charitable Trust and has filed Form No.10AB online on 29.08.2024 u/s 12A(1)(ac)(vi) B of the Act seeking registration u/s.12AB of the Act. ITA No.1147 /Chny/2025 Page - 2 - of 3 The ld. CIT(E) called for certain details by his letter dated 27.12.2024. Assessee filed the necessary details. However, the CIT(E) vide his order dated 07.03.2025 rejected the aforesaid application on the ground that the applicant Trust has filed the application in Section 12A(1)(a)(vi) B in Form 10AB which is not maintainable. Aggrieved, assessee is in appeal before us. 3. Before us, the ld. Counsel for assessee submitted that filing of Form 10AB in wrong section is a curable defect and an opportunity should have been granted by the CIT(E) to rectify the aforesaid defect before rejecting the same. He further submits that filing of Form 10AB in wrong section is a venial and technical breach. The ld.DR stated that no lenient view is to be taken in this case and prayed for dismissal of appeal. 4. We have heard the rival submissions and perused the record. We find that the Form No.10AB filed for seeking registration u/s.12AB of the Income Tax Act, 1961 has been rejected on the technical ground. As submitted by the counsel for the assessee that due to technical glitches only Form 10AB could be downloaded for filing. So, by inadvertent mistake, the assessee preferred application under wrong section. We further find that the assessee ought to have been granted ITA No.1147 /Chny/2025 Page - 3 - of 3 an opportunity to rectify the same but in this case none. Accordingly, in these peculiar facts of the case and in the interest of justice, the impugned order is set aside and the appeal is restored back to the file of Ld. CIT(E) with a direction to the ld. CIT(E) to allow an opportunity to the assessee to rectify the mistake in filing Form 10AB and thereafter, consider the same on merits as per law. The assessee is also directed to substantiate its application after rectifying the same. 5. In the result, appeal filed by the assessee is allowed for statistical purpose. Order pronounced in the open court on 30th day of June, 2025 at Chennai. Sd/- Sd/- (अमिताभ शुक्ला) ( िनु क ुिार गिरर) ( Amitabh Shukla ) ( Manu Kumar Giri) लेखा सदस्य / Accountant Member न्याययक सदस्य/ Judicial Member चेन्नई/Chennai, धदनांक/Dated: 30th , June-2025. KB/- आदेश की प्रतितिति अग्रेतिि/Copy to: 1. अिीिार्थी/Appellant 2. प्रत्यर्थी/Respondent 3. आयकर आयुक्त/CIT - 4. तिभागीय प्रतितिति/DR 5. गार्ड फाईि/GF "