MEMON CHARITABLE TRUST,COONOOR vs. COMMISSIONER OF INCOME TAX (EXEMPTION), CHENNAI

ITA 3166/CHNY/2026Status: DisposedITAT Chennai08 October 2026AY 2027-283 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal held that the assessee deserved one more opportunity to effectively present its case and substantiate its claim. The CIT(E) had rejected the application for non-furnishing of the Trust Deed, which the assessee explained as being misplaced, and stated it could now be produced. Considering the interest of substantial justice, the Tribunal set aside the impugned order of the CIT(E) and restored the matter to his file for fresh adjudication. The assessee was directed to cooperate with the proceedings and not seek unnecessary adjournments. The principle is that in cases of procedural lapses, particularly where a genuine explanation is offered and the assessee is willing to comply, a further opportunity should be granted to avoid miscarriage of justice, especially when the core issue is registration for charitable purposes. The appeal was allowed for statistical purposes.

What were the facts?

The assessee, M/s. Memon Charitable Trust, filed an appeal against the order of the Commissioner of Income Tax (Exemption), Chennai, dated 17.03.2026. The CIT(E) rejected the assessee's application for registration under Section 12AB of the Income Tax Act, 1961. The rejection was primarily due to the non-furnishing of the Trust Deed. The assessee, established on 02.12.2005 and originally granted registration under Section 12A on 11.03.2008, claimed that the Trust Deed was misplaced. The assessee stated it was now in a position to produce the Trust Deed and requested another opportunity to present its case before the CIT(E). The Revenue supported the order of the CIT(E). The appeal was filed for the assessment year not specified in the judgment.

What were the issues?

1. Whether the CIT(E) was justified in rejecting the assessee's application for registration under Section 12AB of the Income Tax Act, 1961, solely on the ground of non-furnishing of the Trust Deed, thereby denying an opportunity to substantiate its claim? Assessee's Contention: The assessee argued that the Trust Deed could not be furnished before the CIT(E) because it had been misplaced. However, the assessee is now able to produce the Trust Deed and requested a further opportunity to present its case and furnish necessary documents to the CIT(E). Revenue's Contention: The Revenue supported the order passed by the CIT(E). No specific authorities, circulars, or precedents were mentioned by the Revenue in the judgment.

Which sections of the Income-tax Act were involved?

Section 12AB,Section 12A

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, ‘D’ BENCH, CHENNAI

Before: SHRI GEORGE GEORGE K & MS PADMAVATHY S

Hearing: 07.10.2026Pronounced: 08.10.2026

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 17.03.2026, rejecting Form No.10AB filed for seeking registration u/s.12AB of the Income Tax Act, 1961 (hereinafter the ‘Act’). Menon Charitable Trust

2.

At the very outset, we notice that the CIT(E) rejected the assessee’s application for non-furnishing of the Trust Deed. The Ld. AR submitted that the assessee is a charitable t

The order continues below.

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