VIVEKANANDA SOCIAL AND EDUCATIONAL SOCIETY,PAPANASAM vs. CIT EXEMPTIONS CHENNAI, CHENNAI

ITA 3829/CHNY/2026Status: DisposedITAT Chennai06 October 2026AY 2024-256 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that there was a reasonable and sufficient cause for the delay in filing the appeal. Citing the Supreme Court decision in Collector, Land Acquisition Vs. MST.Katiji & Ors., the Tribunal condoned the delay and admitted the appeal. Regarding the merits, the Tribunal observed that the CIT(E) cancelled the Section 12AB registration solely because the assessee did not respond to notices. However, the Tribunal noted that Section 12AB(1)(b)(ii) and Section 12AB(4) require the CIT(E) to be satisfied about the genuineness of the trust's activities and compliance with laws. Mere non-response to notices, without any adverse finding on the genuineness of activities or specified violations, is insufficient for cancellation. The Tribunal found that the CIT(E) had not recorded any such adverse findings, unlike in the case of the Section 80G application which was rejected for statistical purposes without adverse inference. Therefore, the Tribunal directed the CIT(E) to restore the existing registration under Section 12AB, valid up to AY 2026-27. The appeal was allowed for statistical purposes.

What were the facts?

The assessee, Vivekananda Social and Educational Society, filed an appeal before the Income Tax Appellate Tribunal (ITAT) challenging an order dated 01.03.2024 by the Commissioner of Income Tax (Exemptions), Chennai (CIT(E)). The CIT(E) had denied registration under Section 12AB of the Income Tax Act, 1961. The assessee, a public non-profit charitable society, had applied for registration under Section 12AB and approval under Section 80G on 29.09.2023. The society held a provisional registration under Section 12AB valid until AY 2026-27. The CIT(E) cancelled the Section 12AB registration because the assessee failed to respond to notices. There was a delay of 764 days in filing the appeal before the ITAT, which the assessee attributed to a bonafide belief that the registration was restored after receiving approval under Section 80G.

What were the issues?

1. Whether there is a reasonable and sufficient cause for the delay of 764 days in filing the appeal before the Tribunal, as per Section 12AB of the Income Tax Act, 1961. Assessee's contention: The assessee argued that it was granted approval under Section 80G on 07.03.2024, six days after the cancellation of its Section 12AB registration. This led to a bonafide belief that the Section 12AB registration was restored. The assessee only realized the cancellation when its return for AY 2024-25 was processed without exemption under Section 11. The assessee relied on the Supreme Court decision in Collector, Land Acquisition Vs. MST.Katiji & Ors., (167 ITR 471) (SC). Revenue's contention: No specific contention from the revenue regarding the delay was recorded in the judgment.

Which sections of the Income-tax Act were involved?

Section 12AB,Section 80G,Section 11,Section 12A(1)(ac)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, ‘A’ BENCH: CHENNAI

Before: SHRI SS VISWANETHRA RAVI & MS. PADMAVATHY.S

For Respondent: Ms. R. Anitha, CIT

PER PADMAVATHY.S, A.M: This appeal by the assessee is against the order of the Commissioner of Income Tax (Exemptions), Chennai (in short "CIT(E)") dated 01.03.2024 denying registration u/s. 12AB of the Income Tax Act, 1961 (in short "the Act").

2.

The assessee is a public non-profit charitable society established with educational and social welfare objectiv

The order continues below.

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