VAMA CHARITABLE TRUST ,TIRUNELVELI V. CIT(EXEMPTIONS), CHENNAI

ITA 1798/CHNY/2025

AI Insights

The case involves Vama Charitable Trust appealing against the decision of the Commissioner of Income Tax (Exemptions), Chennai, which denied the trust exemption under section 12A of the Income Tax Act, 1961, for the assessment year 2023-24. The denial was based on the trust's alleged non-compliance with notices from the CIT(E). The trust argued that the non-compliance was unintentional and due to preoccupation with other matters. The Tribunal found that the CIT(E) had not provided a proper hearing or a speaking order, leading to the decision to set aside the CIT(E)'s order and remand the case for re-adjudication.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 775141 (ITAT-CHENNAI)
• Duration Of Justice: 2 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-09-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Assessment Year: 2023-2024
• Appeal Filed On: 23-06-2025
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ARV SREENIVASAN
• Assessee Lawyers: H. YESHWANTH KUMAR; C.A
• Keywords: Set aside; Opportunity of being heard; Bonafide belief; Charitable institution; Non compliance
• Section: 12A; 80G

Judgement Text

" आयकर अपीलीय अधिकरण, ’डी’ न्यायपीठ, चेन्नई। IN THE INCOME TAX APPELLATE TRIBUNAL ‘D’ 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.1798/Chny/2025 Assessment Years: 2023-24 Vama Charitable Trust, Sivanthiappar Mela Street, Sivasailam Road, Alwarkurichi, Ambasamudram, Tirunelveli, Tamil Nadu-627 412. [PAN: AACTV6752C] Commissioner of Income Tax (Exemptions) Chennai. (अपीलार्थी/Appellant) (प्रत्यर्थी/Respondent) अपीलार्थी की ओर से/ Assessee by : Shri H.Yeshwanthkumar, C.A प्रत्यर्थी की ओर से /Revenue by : Shri ARV Sreenivasan, CIT सुनवाई की तारीख/Date of Hearing : 25.08.2025 घोषणा की तारीख /Date of Pronouncement : 03.09.2025 आदेश / O R D E R PER AMITABH SHUKLA, A.M : This appeal is filed by the assessee against the order bearing DIN & Order No.ITBA / EXM / F / EXM45 / 2024-25 / 1067839141(1) dated 21.08.2024 of the Learned Commissioner of Income Tax (Exemption) [herein after “CIT(E), Chennai for the assessment year 2023-24. The reference to the word “Act” in this order hereinafter shall mean the Income Tax Act, 1961 as amended from time to time. Printed from counselvise.com ITA No.1798 /Chny/2025 Page - 2 - of 4 2.0 It has been noted that there is a delay of 235 days in the case, in filing of this appeal before the tribunal. In its affidavit the assessee has pleaded that the assessee had applied for renewal of registration u/s 80G on 31.03.2024 which was rejected by the Ld.CIT(E ) for non compliance vide his order dated 21/08/24. The assessee thereafter on 22/10/24 filed fresh application under Bonafide belief that as the original application was filed in time, the second one would be considered as a valid continuation. It was stated that no appeal was preferred assuming and awaiting consideration of its second application. All these activities contributed to the delay which was neither willful nor wanton. The assessee submitted that there will not be case of any non-compliance now. We have considered the justification put forth by the assessee and we are satisfied with their adequacy. We are also conscious of the fact that no litigant gains by intentionally delaying its own matters. The Ld. DR did not pose any serious objections to the delay. Accordingly, we hereby condone the delay and proceed to adjudicate this appeal. 3.0 The only issue raised through its grounds of appeal is regarding the denial of exemption u/s 12A by the Ld.CIT(E ) on the premise that the assessee trust did not make any compliance to the notices issued by the Ld.CIT(E). The Ld.Counsel for the assessee submitted that the assessee’s trust could not make timely compliances to the notices issued by the Ld.CIT(E ) on account of contemporaneous preoccupation with Printed from counselvise.com ITA No.1798 /Chny/2025 Page - 3 - of 4 other pressing matters of the trust. It was stated that the same was not intentional or malafide. It was argued that the second time when it filed the application, it was declined to be acted upon on the premised being late. 4.0 Per contra, the Ld.DR relied upon the order Ld.CIT(E). It was stated that the assessee has not complied with the statutory notices. 5.0 We have heard rival submissions in the light of material available on records. We find sufficient force in the arguments of the appellant assesseee. At the outset, we have noted that the Ld.CIT(E) has passed a stereotyped order dated 21.08.2024 by merely rejecting the application on account of non-compliance by the assessee. A unilateral conclusion cannot be basis for a judicious decision. It is trite law that opportunity of being heard is the basic right available to a litigant and cannot be taken away unilaterally. Thus we are of the considered view that the Ld.CIT(E ) has drawn unilateral conclusions without confronting the appellant assessee with his findings and without passing a speaking order. Accordingly, we set aside the order of the Ld.CIT(E ) and direct him to readjudicate the matter afresh by passing a speaking order, in accordance with law, and after giving due opportunity of being heard. The assessee shall comply with all the notices issued by the Ld.CIT(E ). Printed from counselvise.com ITA No.1798 /Chny/2025 Page - 4 - of 4 Accordingly, all the grounds of appeal raised by the assessee are allowed for statistical purposes. 6.0 In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced on 3rd , Sept-2025 at Chennai. Sd/- (मनु क ुमार धिरर) (MANU KUMAR GIRI) न्याधयक सदस्य / Judicial Member Sd/- (अधमताSd/-भ शुक्ला) (AMITABH SHUKLA) लेखा सदस्य /Accountant Member चेन्नई/Chennai, धदनांक/Dated: 3rd , Sept-2025. KB/- आदेश की प्रतितिति अग्रेतिि/Copy to: 1. अिीिार्थी/Appellant 2. प्रत्यर्थी/Respondent 3. आयकर आयुक्त/CIT - Chennai/Coimbatore/Madurai/Salem. 4. तिभागीय प्रतितिति/DR 5. गार्ड फाईि/GF Printed from counselvise.com "