THANGAPANDIAN CHARITABLE TRUST,VIRUDHUNAGAR V. CIT, EXEMPTIONS, , CHENNAI

ITA 178/CHNY/2025

AI Insights

The case involves the Thangapandian Charitable Trust appealing against the decision of the Learned Commissioner of Income Tax (Exemptions), Chennai, which rejected their application for approval under section 80G of the Income Tax Act, 1961. The Trust had previously been granted provisional registrations under sections 12A and 80G of the Act. However, their application for a more permanent status under section 80G was rejected due to non-response to show cause notices, which the Trust claimed not to have received due to internet glitches. The Tribunal found a violation of natural justice and granted the Trust another opportunity to present their case.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 712977 (ITAT-CHENNAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-07-2025
• 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: P.M. KATHIR
• Keywords: Set aside; Charitable institution
• Section: 80G

Judgement Text

"आयकर अपीलीय अिधकरण, ’सी’ \u0001यायपीठ, चे ई। IN THE INCOME TAX APPELLATE TRIBUNAL ‘C’ BENCH: CHENNAI \u0001ी एबी टी. वक , ाियक सद\u0011 एवं एवं एवं एवं \u0001ी जगदीश, लेखा सद क े सम\u0015 BEFORE SHRI ABY T. VARKEY, JUDICIAL MEMBER AND SHRI JAGADISH, ACCOUNTANT MEMBER आयकर अपील सं./ITA No.178/Chny/2025 िनधा\u000eरणवष\u000e/Assessment Year: - Thangapandian Charitable Trust, Sannathi Street, Mallankin Post, Mallankinar Post, Virudhunagar-626 109. v. The CIT (Exemption), Chennai. [PAN: AABTT 4756 H] (अपीलाथ\u0016/Appellant) (\u0017\u0018यथ\u0016/Respondent) अपीलाथ\u0016 क\u001a ओर से/ Appellant by : Mr.P.M. Kathir, Advocate \u0017\u0018यथ\u0016 क\u001a ओर से /Respondent by : Mr.Bipin C.N., CIT सुनवाईक\u001aतारीख/Date of Hearing : 04.07.2025 घोषणाक\u001aतारीख /Date of Pronouncement : 29.07.2025 आदेश / O R D E R PER ABY T. VARKEY, JM: This is an appeal preferred by the assessee Trust against the order of the Learned Commissioner of Income Tax (Exemptions), (hereinafter referred to as “the Ld.CIT(E)”), Chennai, dated 06.12.2024 rejecting the application filed online dated 27.06.2024 in Form No.10AB under clause (iii) of first proviso to section 80G(5) of the Income Tax Act, 1961 (hereinafter referred to as \"the Act”), seeking approval u/s.80G of the Act. Printed from counselvise.com ITA No.178/Chny/2025 (AY -) Thangapandian Charitable Trust, :: 2 :: 2. Brief facts are that the assessee Trust is noted to have been granted provisional registration vide order dated 27.05.2021 u/s.12A(ac)(vi) of the Act from AYs 2021-22 to 2023-24. Thereafter, the Ld.CIT(E) by order dated 28.06.2025 was pleased to grant registration u/s.12AB(1)(b) of the Act from AYs 2024-25 to 2028-29. 3. Meanwhile, the assessee Trust was also granted provisional registration u/s.80G(5)(iv) of the Act from 05.04.2022 to AY 2024-25. Thereafter, the assessee Trust is noted to have filed Form 10AB for registration under Clause (iii) of first proviso to Section 80G(5) of the Act vide application dated 27.06.2024 [before the extended time limit given to file Form 10A for seeking approval u/s.12AB & 80G of the Act]. The Ld.CIT(E) by passing the impugned order in Form 10AD has rejected the application by holding that it was not maintainable. According to the Ld.CIT(E), the assessee was given show cause notice on 23.10.2024 directing it to furnish certain details/documents, but the assessee didn’t respond and therefore, he issued one more notice on 16.11.2024 by giving final opportunity to the assessee to furnish the details within the due date on 22.11.2024. But since the assessee failed to even file any details by the due date on 22.11.2024, he decided the application filed by the assessee ex parte qua assessee by rejecting the same. According to the assessee, it has not received two (2) notices may be due to glitches in the internet. Be that as it may, we find that there is violation of natural Printed from counselvise.com ITA No.178/Chny/2025 (AY -) Thangapandian Charitable Trust, :: 3 :: justice and therefore, considering the fact that the assessee was enjoying provisional registration u/s.12A of the Act & provisional registration u/s.80G of the Act as noted supra, there is no reason for assessee to abstain from the hearing before the Ld.CIT(E), but for the technical glitches as brought to our notice. Therefore, we are inclined to grant one more opportunity to the assessee and hence, we set aside the impugned order of the Ld.CIT(E) and restore the application back to the file of the Ld.CIT(E) for de novo consideration and direct him to pass order in accordance to law. The Ld.AR undertakes to appear and file all the relevant documents before the Ld.CIT(E) to process the application in accordance to law. 4. In the result, appeal filed by the assessee is allowed for statistical purposes. Order pronounced on the 29th day of July, 2025, in Chennai. Sd/- Sd/- (जगदीश) (JAGADISH) लेखा सद /ACCOUNTANT MEMBER (एबी टी. वक ) (ABY T. VARKEY) \u0001याियक सद\bय/JUDICIAL MEMBER चे ई/Chennai, !दनांक/Dated: 29th July, 2025. TLN आदेश क\u001a \u0017ितिलिप अ$ेिषत/Copy to: 1. अपीलाथ\u0010/Appellant 2. \u0011\u0012थ\u0010/Respondent 3. आयकरआयु\u0018/CIT, Chennai / Madurai / Salem / Coimbatore. 4. िवभागीय\u0011ितिनिध/DR 5. गाड फाईल/GF Printed from counselvise.com "