MEENAKSHI ACHI TRUST,MADURAI vs. CIT, EXMEPTIONS,, CHENNAI

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ITA 3010/CHNY/2025Status: DisposedITAT Chennai18 December 2025Bench: SHRI MANU KUMAR GIRI (Judicial Member), SHRI HON'BLE S.R. RAGHUNATHA (Accountant Member)1 pages
AI SummaryPartly Allowed

What did the Tribunal hold?

The Tribunal noted that the hearing notice was not received by the assessee and granted one more opportunity. The impugned order was set aside, and the appeal was restored to the CIT(E) for a fresh hearing on merits.

What were the facts?

The assessee filed an application for registration under Section 12AB of the Income-tax Act. The CIT(E) rejected the application, observing that the assessee did not comply with notices and failed to provide documentary evidence.

What were the issues?

Whether the CIT(E) erred in rejecting the registration application without affording proper opportunity to the assessee, and whether the assessee received the hearing notice.

Which sections of the Income-tax Act were involved?

Section 12AB,Section 12A(1)(ac)(iii),Section 12AB(1)(b)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, ‘D’ BENCH: CHENNAI

Before: HON’BLE SHRI MANU KUMAR GIRI & SHRI HON’BLE S.R. RAGHUNATHA

Hearing: 16.12.2025

आदेश / O R D E R

PER MANU KUMAR GIRI (Judicial Member):

1.

The captioned appeal filed by the assessee is directed against order of the Ld. Commissioner of Income Tax (Exemption)[‘CIT(E)’ in short] dated 03.12.2024 rejecting application filed by the assessee on 28.06.2024 in Form 10AB u/s (AY) Meenakshi Achi Trust Vs CIT (E) :- 2 -: 12A(1)(ac)(iii) seeking registration u/s12AB of the Income-tax Act, 1961 (hereinafter “the Act”)

2.

Brief facts of the case are that Section 12AB(1)(b) of the Act empowers the Principal Commissioner or the Commissioner of Income Tax on receipt of an application for registration of a trust/ institution to call for such documents as may be necessary to satisfy himself about the genuineness of activities of the trust or institution and make inquiries in that behalf; it empowers the Commissioner to thereupon register the trust/ institution if he is satisfied about the objects of the trust or institution and genuineness of its activities.

3.

The Ld. CIT(E), however, observed that the assessee had neither complied with the notices issued nor filed any documentary evidences in support of its contentions. In view of the above, the learned CIT(E) dismissed the appeal of the assessee.

4.

Aggrieved by the order of ld.CIT(E), the Assessee has filed this captioned appeal before this Tribunal.

(AY) Meenakshi Achi Trust Vs CIT (E) :- 3 -: 5. We find that the notice of hearing issued by the ld. CIT(E) was not received by the assessee. Hence, we grant one opportunity to appear before the ld. CIT (E) to substantiate the queries raised by the ld.CIT(E).

6.

The Ld. DR Mr.ARV Sreenivasan, CIT has relied upon the order of the Ld CIT (E) and pleaded for the dismissal of the appeal.

7.

Though we some extent concur with the submissions of Ld.DR Mr.ARV Sreenivasan, CIT however, keeping in mind the reasons furnished and substantial justice, grant one more opportunity to the assesee to prosecute the application filed in Form 10AB u/s 12A (1)(ac)(iii) seeking registration u/s12AB of the Income-tax Act, 1961 on merits. Accordingly, the impugned order is set aside and the appeal is restored back to the file of Ld. CIT(E) for hearing on merits. The Ld.CIT(E) whose shall proceed for hearing the aforesaid application on merits after affording proper opportunity of hearing to the assessee. The assessee is directed to substantiate its case with all evidence and documents, if any, forthwith without any fail, failing which Ld.CIT(E) shall be at liberty to proceed with the proceedings on merits as per law.

(AY) Meenakshi Achi Trust Vs CIT (E) :- 4 -: 8. In the result, appeal filed by the assessee is allowed for statistical purposes.

Order pronounced on 18th day of December, 2025 at Chennai.

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