RYA COSMO PHARMACY TRUST,CHENNAI vs. CIT(EXEMPTION), CHENNAI, CHENNAI

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ITA 3554/CHNY/2026Status: DisposedITAT Chennai27 August 20264 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal condoned the delay in filing the appeal and, while deprecating the assessee's attitude, granted one more opportunity to substantiate its charitable activities before the CIT(E). The matter was restored to the CIT(E) for fresh adjudication.

What were the facts?

The assessee's application for registration under Section 12AB was rejected by the CIT(E) for non-compliance with notices and failure to furnish mandatory documents. The assessee appealed this rejection.

What were the issues?

Whether the assessee should be granted another opportunity to comply with the requirements for registration under Section 12AB after failing to respond to notices.

Which sections of the Income-tax Act were involved?

Section 12AB

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, ‘C’ BENCH, CHENNAI

Before: SHRI GEORGE GEORGE K & SHRI GAGAN GOYAL

Hearing: 25.08.2026Pronounced: 27.08.2026

आदेश/ O R D E R PER GEORGE GEORGE K, VICE PRESIDENT: This appeal filed by the assessee is directed against the order of the Commissioner of Income Tax (Exemption), Chennai dated 28.03.2026, rejecting Form No.10AB filed for seeking registration u/s.12AB of the Income Tax Act, 1961 (hereinafter the ‘Act’).

- 2 - ITA No.3554/CHNY/2026 Rya Cosmo Pharmacy Trust 2. There is a delay of 24 days in filing the appeal before the Tribunal. The Managing Trustee of the assessee-trust has petition for condonation of delay supported by affidavit explaining the reasons for the belated filing of the appeal. It was submitted that, upon rejection of the application by the CIT(E), the Managing Trustee approached the Chartered Accountant and, based on his advice, instructed him to prepare the appeal papers and forward the same for verification and signature. However, the assessee-trust did not receive the appeal papers. On enquiry, the Chartered Accountant informed that his spouse had been diagnosed with lung cancer and, due to frequent hospital visits, he could not prepare the appeal papers within the prescribed time. Subsequently, the Chartered Accountant instructed his office to prepare the appeal paper, which was thereafter filed, resulting in a delay of 24 days. On perusal of the reasons stated in the affidavit, we are of the view that no latches can be attributed to the assessee as there is sufficient cause for belated filing of this appeal. Hence, we condone the delay and proceed to dispose off the appeal on merits.

3.

At the very outset, we notice that the CIT(E) has rejected the applications filed by the assessee seeking registration u/s.12AB of the Act, by holding that the assessee has failed to comply with the notices and has not furnished all the mandatory documents required for examining the objects and genuineness of the activities.

- 3 - ITA No.3554/CHNY/2026 Rya Cosmo Pharmacy Trust 4. Aggrieved by the orders of the CIT(E) rejecting the assessee’s application for registration u/s.12AB, the assessee has filed the present appeal before the Tribunal. Before us, the Ld. AR submitted that the assessee trust has inadvertently failed to reply to the show-cause notice issued by the CIT(E) and therefore, prayed that one more opportunity be granted to the assessee-trust before the CIT(E) to substantiate its charitable activities and satisfy the statutory requirements.

5.

The Ld.DR was duly heard.

6.

We have heard the rival submissions and perused the material available on record. We find that the CIT(E) rejected the assessee’s application for registration u/s.12AB of the Act on the ground that the assessee-trust has not responded to the show-cause notice. The Ld.AR submitted that the assessee trust had inadvertently failed to reply to the show-cause notice and pleaded for one more opportunity to substantiate its charitable activities before the CIT(E). We strongly deprecate the nonchalant attitude of the assessee in not responding to the show-cause notice issued by the CIT(E). However, in the interest of justice, we are of the view that assessee ought to be provided with one more opportunity to substantiate its charitable activities before the CIT(E). Accordingly, the impugned order is set aside and the matter is restored to the file of the CIT(E) for fresh adjudication in accordance with law.

- 4 - ITA No.3554/CHNY/2026 Rya Cosmo Pharmacy Trust The CIT(E) shall afford reasonable opportunity of hearing to the assessee and examine the activities and supporting evidences furnished by the assessee before deciding the applications afresh. The assessee is directed to cooperate with the proceedings and furnish all requisite details and evidences without seeking unnecessary adjournments. It is ordered accordingly.

7.

In the result, the appeal filed by the assessee is allowed for statistical purposes.

Order pronounced in the open court on 27th August,2026 at Chennai.

Sd/- Sd/- (जॉज� जॉज� के) (गगन गोयल) (GAGAN GOYAL) (GEORGE GEORGE K) लेखा सद�य/ACCOUNTANT MEMBER उपा�य� /VICE PRESIDENT चे�नई/Chennai, �दनांक/Dated, the 27th August, 2026 RSR, Sr.PS आदेश क� ��त�ल�प अ�े�षत/Copy to: 1. अपीलाथ�/Appellant 2. ��यथ�/Respondent 3. आयकर आयु�त /CIT, Chennai 4. �वभागीय ��त�न�ध/DR 5. गाड� फाईल/GF. By Order Digitally signed by REKHA REKHA SENTHIL RAJ SENTHIL RAJ Date: 2026.08.28 17:43:49 +05'30'

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