SARASWATHI FOUNDATION,CHENNAI vs. ITO, EXEMPTION WARD, TRICHY, TIRUCHIRAPALLI

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ITA 3719/CHNY/2026Status: DisposedITAT Chennai12 October 2026AY 2026-273 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal held that it was inclined to grant the assessee one more opportunity to present its case before the Ld. CIT(E). The reasoning was that the assessee would not benefit from not participating in the proceedings, and the ex parte order was passed due to non-compliance. The Tribunal set aside the impugned orders of the Ld. CIT(E) and restored the applications for registration under Section 12AB and approval under Section 80G. The Ld. CIT(E) was directed to call for relevant documents, examine them, and pass an order in accordance with the law after hearing the assessee. The appeals were allowed for statistical purposes. No issue was expressly left undecided.

What were the facts?

The assessee, Saraswathi Foundation, filed appeals against the order of the Learned Commissioner of Income Tax (Exemption) (Ld. CIT(E)), Chennai, dated 19.03.2026. The Ld. CIT(E) had rejected the assessee's application for registration under Section 12AB and approval under Section 80G of the Income Tax Act, 1961. The rejection was due to the assessee's non-compliance before the Ld. CIT(E). The assessee contended that it had not received any notices from the Ld. CIT(E)'s office and requested another opportunity to present its case. The appeals were for Assessment Years 2026-27 and 2027-28.

What were the issues?

1. Whether the Tribunal should grant the assessee a further opportunity to present its case before the Ld. CIT(E) for registration under Section 12AB and approval under Section 80G, given the ex parte nature of the order and the assessee's claim of not receiving notices. Assessee's Contention: The assessee argued that it had not received any notices from the Ld. CIT(E)'s office and therefore pleaded for one more opportunity to appear before the authority. Revenue's Contention: The judgment does not record any specific contentions from the revenue. However, the Ld. CIT(E)'s order was based on the assessee's non-compliance.

Which sections of the Income-tax Act were involved?

Section 12AB,Section 80G

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, ‘D’ BENCH: CHENNAI

Before: SHRI ABY T. VARKEY & MS. PADMAVATHY. S

Hearing: 25.08.2026Pronounced: 12.10.2026

आदेश / O R D E R PER ABY T. VARKEY, JM: These are appeals preferred by the assessee against the order of the Learned Commissioner of Income Tax (Exemption), (hereinafter referred to as ‘Ld. CIT(E)’), Chennai, dated 19.03.2026 rejection application u/s. 12AB of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) and approval u/s.80G of the Act.

2.

None appeared for the assessee. However, on perusal of the grounds of appeal, it reveals that assessee is aggrieved by the action of

ITA 3719 & 3718 /Chny/2026 (AY 2026-27 & 2027-28) Saraswathi Foundation :: 2 :: the Ld. CIT(E) passing ex parte order qua the assessee. Having gone through the impugned order passed by the Ld. CIT(E), we find that the Ld. CIT(E) has refused to grant registration u/s.12AB and approval under section 80G finding the assessee’s non-compliance before him. From the documents placed before us, the assessee’s plea is that it hasn’t received any notices from the office of the Ld. CIT(E), hence pleaded for one more opportunity before the Ld. CIT(E).

3.

Considering the facts and circumstances of the case, as well as the fact that the assessee doesn’t gain by not participating in the proceedings before the Ld. CIT(E), we are inclined to grant one more opportunity to the assessee to place before the Ld. CIT(E) all the relevant documents for proving the genuineness of the its activities and the nature of its objectives. Hence, we set aside the impugned orders of the Ld. CIT(E) and restore the application filed by assessee for registration u/s.12AB/80G of the Act and the Ld. CIT(E) after calling for the relevant documents as envisaged under the Act, to examine the same, and then pass order in accordance to law after hearing the assessee.

4.

In the result, appeals of the assessee are allowed for statistical purposes.

Order pronounced on the 12th day of October 2026, in Chennai.

Sd/- Sd/-

(प�ावती .एस) (एबी टी. वक�) (PADMAVATHY. S) (ABY T. VARKEY) लेखा सद�य/ACCOUNTANT MEMBER �या�यक सद�य/JUDICIAL MEMBER चे�नई/Chennai, �दनांक/Dated: 12th October, 2026. YS YASHVIR Digitally signed by YASHVIR SINGH SINGH Date: 2026.10.16 14:49:59 +05'30'

ITA 3719 & 3718 /Chny/2026 (AY 2026-27 & 2027-28) Saraswathi Foundation :: 3 ::

आदेश क� ��त�ल�प अ�े�षत/Copy to: 1. अपीलाथ�/Appellant 2. ��थ�/Respondent 3. आयकरआयु�/CIT, Chennai / Madurai / Salem / Coimbatore. 4. िवभागीय�ितिनिध/DR 5. गाड�फाईल/GF

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