THE N NATARAJAN CHARITABLE TRUST,CHENNAI V. CIT, EXEMPTIONS, CHENNAI

ITA 624/CHNY/2025

AI Insights

The case involves The N Natarajan Charitable Trust, which appealed against the decision of the Commissioner of Income Tax (Exemptions), Chennai, who had rejected the trust's application for registration under section 12AB of the Income-tax Act, 1961. The rejection was based on the trust's failure to provide satisfactory explanations regarding its activities, despite having been given sufficient opportunities. The trust argued that it primarily conducts moot court competitions for law students and similar events, but failed to provide supporting evidence at the initial application stage. The Tribunal found that the trust was not given adequate opportunity to present its case and thus remitted the matter back to the CIT(E) for a fresh examination.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 312884 (ITAT-CHENNAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-04-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Assessment Year: 2022-2023
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: V SREENIVASAN
• Assessee Lawyers: SESYA HARNI
• Keywords: Set aside; Opportunity of being heard; Corroborative evidences; Principle of natural justice; Charitable institution

Judgement Text

"आयकर अपीलीय अिधकरण, ‘डी’ \u0011ा यपीठ, चे\u0016ई। IN THE INCOME TAX APPELLATE TRIBUNAL ‘D’ BENCH: CHENNAI \u0019ी यस यस िव ने रिव, \u0011ा ियक सद एवं \u0019ी जगदीश, लेखा सद क े सम( BEFORE SHRI SS VISWANETHRA RAVI, JUDICIAL MEMBER AND SHRI JAGADISH, ACCOUNTANT MEMBER आयकर अपील सं./ITA No.624/Chny/2025 िनधा 9रण वष9 /Assessment Year: 2022-23 The N Natarajan Charitable Trust, 1K, Gaiety Palace, No.1, Blackers Road, Chennai – 600 002. Vs. The Commissioner of Income Tax (Exemptions), Chennai. [PAN: AACTT 7118G] (अपीलाथ\u0007/Appellant) (\b यथ\u0007/Respondent) अपीला थF की ओर से/ Appellant by : Ms. Sesya Harni, Advocate HIथF की ओर से /Respondent by : Shri A.R.V Sreenivasan, CIT सुनवा ई की ता रीख/Date of Hearing : 23.04.2025 घोषणा की ता रीख /Date of Pronouncement : 30.04.2025 आदेश / O R D E R PER JAGADISH, A.M : Aforesaid appeal filed by the assessee for Assessment Year (AY) 2022-23 arises out of the order of Learned Commissioner of Income Tax (Exemption), Chennai [hereinafter “CIT(A)”] dated 24.12.2024. 2. The assessee has filed online application on 14.06.2024 in Form No.10AB u/s. 12A(1)(ac)(iii) of the Income-tax Act, 1961 (hereinafter “the Act”), seeking registration u/s. 12AB of the Income-tax Act, 1961 ITA No.624/Chny/2025 :- 2 -: (hereinafter “the Act”). However, the Ld. CIT(E) rejected the application on the ground that the assessee failed to offer any satisfactory explanation regarding its activities, despite having been afforded sufficient opportunity. 3. The Ld. Authorized Representative (A.R) of the assessee before us has submitted that assessee trust is primarily engaged in conducting moot court competitions for law students and organizing similar competitions in India, but the assessee could not furnish supporting evidence at the relevant time. The Ld. AR therefore, prayed that one more opportunity be provided to the assessee to substantiate its claim. 4. The Ld. Departmental Representative (DR), on the other hand, supported the order passed by the Ld. CIT(E) in rejecting the application as the assessee has not complied with the notices issued. 5. We have heard the rival submissions, and perused the materials available on record. It is noted that the Ld. CIT(E) had rejected the application filed by the assessee seeking registration u/s. 12AB of the Act on account of assessee’s failure to provide satisfactory explanation regarding its activities. However, before us, the Ld. AR has contended that adequate opportunity was not granted by the Ld. CIT(E) to ITA No.624/Chny/2025 :- 3 -: produce the necessary details. In the interest of justice and considering principles of natural justice, we are of the view that the assessee be provided with another opportunity of hearing to substantiate its case before the Ld. CIT(E). Accordingly, we set aside the order passed by the Ld. CIT(E) and remit the matter to his file with a direction to examine the application afresh, after providing due opportunity of being heard to the assessee in accordance with law. We also direct the assessee to appear before the Ld. CIT(E) on the date of hearing without fail. In view of the above, the appeal filed by the assessee is allowed for statistical purposes. 6. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced on 30th April, 2025. Sd/- Sd/- (यस यस िव ने रिव) (SS Viswanethra Ravi) \u0001याियक \u0001याियक \u0001याियक \u0001याियक सद\bय सद\bय सद\bय सद\bय / Judicial Member (जगदीश) (Jagadish) लेखा लेखा लेखा लेखा सद\u0011य सद\u0011य सद\u0011य सद\u0011य /Accountant Member चे\u0013नई/Chennai, \u0016दनांक/Dated: 30th April, 2025. EDN/- ITA No.624/Chny/2025 :- 4 -: आदेश क\u0019 \bितिल प अ े षत/Copy to: 1. अपीलाथ\u0007/Appellant 2. \b थ\u0007/Respondent 3. आयकर आयु\u000f/CIT, Chennai 4. िवभागीय \bितिनिध/DR 5. गाड\u0018 फाईल/GF "