JAYAM BAPTIST CHURCH,CHENNAI vs. CIT EXEMPTIONS, CHENNAI

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ITA 2363/CHNY/2026Status: DisposedITAT Chennai18 June 20266 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal condoned the delay, noting sufficient cause for belated filing. It also observed that the impugned orders were ex-parte and, in the interest of justice, restored the matters to the CIT(E) for a fresh opportunity.

What were the facts?

Three assessees filed appeals against orders rejecting their Form 10AB for registration under section 12AB. The appeals were filed with a delay due to the death of their auditor, who handled all their tax compliance matters.

What were the issues?

Whether the delay in filing appeals should be condoned due to the death of the auditor and if the ex-parte orders passed by the CIT(E) should be set aside for a fresh opportunity.

Which sections of the Income-tax Act were involved?

Section 12AB

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, ‘D’ BENCH, CHENNAI

Before: SHRI GEORGE GEORGE K & SHRI S.R. RAGHUNATHA

Hearing: 17.06.2026Pronounced: 18.06.2026

आदेश/ O R D E R PER GEORGE GEORGE K, VICE PRESIDENT: These appeals filed by three assessees are directed against three orders of the Commissioner of Income Tax (Exemption), Chennai all dated 02.12.2025, rejecting Form No.10AB filed for seeking registration under section 12AB of the Income Tax Act, 1961 (hereinafter the ‘Act’).

2.

There is a delay of 55 days in filing the present appeals before the Tribunal. The assessee-trusts have filed petitions for condonation of delay supported by affidavits explaining the reasons for the belated filing of the appeals. The Ld.AR submitted that the assessee-trusts had been relying entirely upon their auditor, CA Shri Sudhahar C., for all matters relating to income-tax compliance, including the process of renewal of registration under section 12AB of the Act. It was submitted that during the pendency of the renewal proceedings, the said auditor was afflicted with a prolonged and serious illness and subsequently passed away on

ITA Nos.2360, 2362 & 2363/CHNY/2026 - 3 - Jesus For You Prayer House & others 06.11.2025 (The assessee trusts had enclosed the copy of the death certificate of its auditor). Owing to his prolonged illness and untimely demise, the assessee-trusts were left without professional assistance and were not properly apprised of the status of their applications, the notices issued by the Department, the procedural requirements to be complied with, and the orders passed rejecting the applications for renewal of registration. It was further stated that the assessee-trusts thereafter appointed the present auditor, who, upon examining the records and ascertaining the factual position, took immediate steps to file the present appeals before the Tribunal. On perusal of the reasons stated in the affidavit, we are of the view that no latches can be attributed to the assessees as there is sufficient cause for belated filing of these appeals. Hence, we condone the delay and proceed to dispose off the appeals on merits.

3.

At the very outset, we notice that the CIT(E) has passed ex-parte orders. The Ld. AR submitted that the impugned orders were passed ex-parte by the CIT(E) on account of non-compliance with the notices issued during the course of the proceedings. The Ld. AR submitted that the assessees are religious trusts engaged in religious and related charitable activities, who is not well-versed

ITA Nos.2360, 2362 & 2363/CHNY/2026 - 4 - Jesus For You Prayer House & others with Income-tax matters and procedures. Hence, the assessee Trusts had entrusted all matters relating to income-tax compliance, including the renewal of registration u/s.12AB of the Act, to their erstwhile auditor, CA Shri Sudhahar C. The Ld. AR further submitted that during the pendency of the renewal proceedings, the said auditor was afflicted with a prolonged and serious illness and subsequently passed away on 06.11.2025. Owing to his prolonged illness and untimely demise, the assessee-trusts were left without professional assistance and were not properly apprised of the status of their applications, the notices issued by the Department, and the compliances required to be made. Consequently, the notices remained unattended, resulting in the CIT(E) passing the impugned orders ex-parte. The Ld.AR, therefore pleaded that, in the interest of justice and equity, one more opportunity may be granted to the assessee-trusts to represent their cases before the CIT(E) and to furnish all necessary details and evidences in support of their applications. The Ld. AR further undertook that the assessees would duly appear before the CIT(E) and furnish the necessary details as and when called for.

5.

The ld.DR supported the orders of CIT(E).

ITA Nos.2360, 2362 & 2363/CHNY/2026 - 5 - Jesus For You Prayer House & others 6. We have heard rival submissions and perused the material on record. At the very outset, we notice that the impugned orders passed by the CIT(E) are ex-parte. The CIT(E) proceeded to dispose of the applications on the ground that the assessee-trusts had failed to comply with the notices issued during the course of the proceedings. The Ld.AR submitted that during the pendency of the renewal proceedings, the assessees' erstwhile auditor, who was handling all income-tax matters of the trusts, was afflicted with a prolonged and serious illness and subsequently passed away on 06.11.2025. It was contended that owing to his prolonged illness and untimely demise, the assessee-trusts were left without professional assistance and were not properly apprised of the status of their applications, the notices issued by the Department, and the compliances required to be made. Consequently, the notices remained unattended, resulting in the impugned ex-parte orders. Considering the facts and circumstances of the case, and keeping in view the principles of natural justice, we are of the view that that assessee ought to be provided with one more opportunity to represent its cases. The Ld.AR has also undertaken to duly appear before the CIT(E) and furnish the requisite details and evidences as and when called for. In light of the submissions of Ld.AR and in the interest of justice and fair play, the issues are

ITA Nos.2360, 2362 & 2363/CHNY/2026 - 6 - Jesus For You Prayer House & others restored to the files of the CIT(E). The assessee-trusts are directed to co-operate with the Revenue and shall not seek unnecessary adjournment. It is ordered accordingly.

7.

In the result, the appeals filed by the assessees are allowed for statistical purposes.

Order pronounced in the open court on 18th June,2026 at Chennai.

Sd/- Sd/- (एस.आर. रघुनाथा) (जॉज� जॉज� के) (GEORGE GEORGE K) (S.R. RAGHUNATHA) उपा�य� /VICE PRESIDENT लेखा सद�य/ACCOUNTANT MEMBER चे�नई/Chennai, �दनांक/Dated, the 18th June, 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: 2026.06.22 12:33:14 +05'30'

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