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Facts
The assessee trust filed its return for AY 2018-19 declaring Nil income after claiming exemption under Section 11. The Assessing Officer (AO) disallowed the exemption and taxed gross receipts of Rs. 3,81,97,717. The AO's action was upheld by the NFAC.
Held
The Tribunal held that the assessment was framed in the name of CNC CAC Charities, which is the assessee with a valid registration. The mere mention of 'CAC Charities' in the return does not change the entity. Therefore, the addition made by the AO was deleted.
Key Issues
Whether the exemption under Section 11 can be denied to an assessee merely because the return was filed in a slightly different name than its registered name, when the PAN and the registered name align with the actual assessment proceedings.
Sections Cited
11, 12A, 12AA, 143(3), 143(3A), 143(3B), 143(1)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, ‘C’ BENCH, CHENNAI
Before: SHRI S.BALAGANESH & SHRI S.S. VISWANETHRA RAVI
आदेश /O R D E R
PER M. BALAGANESH, AM:
The appeal of the Revenue and cross objection of the assessee are directed against the order of the National Faceless Appeal Centre (NFAC), Delhi [hereinafter referred to as Ld.NFAC, in short] in -2 - ITA. No:2128/CHNY/2025 & CO No.:69/CHNY/2025 Appeal No.ITBA/NFAC/S/250/2025-26/1076124521(1) dated 08.05.2025 for the assessment year 2018-19 against the order of assessment passed u/s. 143(3) r.w.s. 143(3A) & 143(3B) of the Income Tax Act,1961 (herein after referred to as the Act) dated 05.04.2021 by the Assessing Officer, National e-Assessment Centre, Delhi (hereinafter referred to as Ld. AO).
The Revenue has raised the following grounds of appeal:- i) The ld. CIT(A) erred in deciding the issue by relying on the assessment orders passed in the past for the A.Y.2002-03 to 2013-14. The ld. CIT(A) has failed to appreciate the fact that just because exemption was allowed in the earlier assessment years does not mean that the assessee is eligible for exemption u/s 11 without having a valid registration u/s 12A/12AA. ii) The ld. CIT(A) has failed to appreciate the fact that there is no registration u/s 12A/12AA granted either in the name of "Calimidi Alavandar Chetty's Trust" (name as mentioned in the ITR) or in the name of “CŃC CAC Charities” (name as per PAN database) and the assessee has claimed exemption on the basis of registration u/s 12A granted to another trust Calimidi Namberumal Chetty's Charities. iii) The ld. CIT(A) has failed to appreciate the fact that the trust Calimidi Namberumal Chetty's Charities was originally created on 07.05.1943 and got registered u/s 12A vide order of the CIT dated 27.03.1976. Further, as per resolution dated 10.02.1983, it was resolved to constitute a separate trust by the name "С. Alavandar Chetty's Chariteis". However, the assessee failed to explain during assessment proceedings that whether the said resolution was executed or not instead gave general explanation that both are part and parcel of the same entity. The above explanation was rejected by the assessing officer. iv) For these and other grounds that may be adduced at the time of hearing, it is prayed that the order of the ld. CIT(A) may be set aside and that of the Assessing Officer may be restored.
-3 - ITA. No:2128/CHNY/2025 & CO No.:69/CHNY/2025 3. We have heard rival submissions and perused the materials available on record. The return of income for the assessment year 2018-19 was filed by the assessee declaring total income of Nil after claiming exemption u/s.11 of the Act. Shri Calimidi Namberumal Chetty created a trust styled as ‘Calimidi Namberumal Chetty Charities’ by a settlement deed dated 07.05.1943. The said trust have been granted registration u/s.12A of the Act vide C.No.212(148)/73 dated 27.03.1976 by the Commissioner of Income Tax, Tamil Nadu-III.
Shri C. Alavandar Chetty S/o C Namberumal Chetty had executed a will on 22.09.1939 directing that after the demise of his wife Smt. Calimidi Rukminiamma, certain properties be transferred to the Trust created by his father Shri C Namberumal Chetty. Smt. Calimidi Rukminiamma died on 16.06.1982 and as per the will of her late husband Shri C Alavandar Chetty, properties owned by the estate of Calimidi Rukminiamma was taken over by the Trust C Namberumal Chetty and in order to see that the name of Sri CAC exist for perpetuity, the Trust was renamed as Calimidi Namberumal Chetty Charities Calimidi Alavandar Chetty Charities [CNC CAC]. After completing the formalities with regard to transfer of assets from estate of C Rukminiamma, the assessee trust has been -4 - ITA. No:2128/CHNY/2025 & CO No.:69/CHNY/2025 regularly filing its returns of income in the name of CNC CAC Charities. The assessee submits that when the Income Tax Department mandated every taxpayer to apply for the 10 digit Alpha Numeric PAN, the assessee filed an application. While filing the application for question no.1, “Full Name”, the assessee had filed “Calimidi Namberumal Chetty Charities and Calimidi Alavandar Chetty Charities”. However, for the question no.2, “Name you would like to be printed on the card”, because there was a restriction on the number of characters, the assessee was forced to fill “CNC CAC Charities”. In response to the said application, the income tax department issued PAN card under the name and style of CNC CAC Charities. The assessee submits that the returns of income of the assessee had been taken up for scrutiny during the assessment years 2002-03 and 2013-14 and the assessment was completed vide order u/s 143(3) of the Act in the name of CNC CAC Charities.
The Ld.AO completely ignored the aforesaid facts and noted that the return of income for the assessment year 2018-19 was filed in the name of CAC Charities. The Ld.AO accordingly thought and concluded that CAC Charities is an independent trust / entity by itself and ignored the contentions of the assessee that CAC Charities is part of the activities carried out by CNC CAC Charities.
-5 - ITA. No:2128/CHNY/2025 & CO No.:69/CHNY/2025 Accordingly, the AO brought the entire gross receipts of CNC CAC Charities in the sum of Rs.3,81,97,717/- to tax on the ground that CAC Charities does not independently possess section 12A registration and accordingly, not eligible for exemption u/s.11 of the Act. This action of the Ld.AO was upheld by the NFAC.
It is not in dispute that even though return of income for the assessment year 2018-19 has been filed in the name of CAC Charities, the PAN used thereon was AAAAC1912C. It is pertinent to note that this PAN belongs to CNC CAC Charities. It is pertinent to note that registration u/s.12A of the Act was granted to CNC Charities way back on 27.03.1976. The assessee had duly explained the reasoning based on which the name of the assessee stood changed from CNC Charities to CNC CAC Charities, which are not reiterated herein for the sake of brevity. The reasoning given by the assessee with regard to change of name as narrated in the earlier part of the order is not disputed by the Revenue by bringing contrary evidence on record. Further, we find that the Ld.AO had thought to bring the entire gross receipts to tax on the ground that return of income for assessment year 2018-19 was filed in the name of CAC Charities. But, the Ld.AO infact framed assessment in the name of CNC CAC Charities only by using the PAN of CNC CAC -6 - ITA. No:2128/CHNY/2025 & CO No.:69/CHNY/2025 Charities i.e, AAAAC1912C. If the trigger point for the Ld.AO to conclude that CAC Charities is an independent entity not having any registration u/s.12A of the Act based on the return filed for assessment year 2018-19, then the Revenue should have framed the assessment in the name of alleged independent entity i.e., CNC Charities. Whereas in the instant case, the assessment has been framed in the name of CNC CAC Charities. This itself goes to prove that Revenue had indeed accepted the fact that the only assessee which is in existence is CNC CAC Charities having PAN : AAAAC1912C. Further, the Ld.AR had placed on record, the scrutiny assessment orders for assessment years 2002-03 and 2013-14 framed u/s.143(3) of the Act dated 24.02.2025 and 14.03.2016 respectively in the name of CNC CAC Charities. Further for assessment years 1998-99 and 2003-04, intimation u/s.143(1) of the Act dated 08.02.1999 and 17.03.2004 respectively were also issued in the name of Calimidi Namberumal Chetty Charities Calimidi Alavandar Chetty Charities. Hence the entire contentions of the Revenue richly deserve to be rejected as devoid of merits and contrary to evidences available on record. Hence, we have no hesitation to delete the addition made of Rs.3,81,97,717/-, in the facts and circumstances of the instant case and direct the Ld.AO to grant exemption u/s.11 of the Act to the assessee for the -7 - ITA. No:2128/CHNY/2025 & CO No.:69/CHNY/2025 assessment year 2018-19. This has been rightly appreciated by the NFAC, on which we do not find any infirmity. Accordingly, the grounds raised
by the Revenue are dismissed.
7. Since the appeal of the Revenue is dismissed on merits, the cross objection filed by the assessee wherein only legal issues are raised need not be gone into as adjudication of the same would become academic in nature.
In the result, the appeal of the Revenue is dismissed and the cross objection of the assessee is dismissed as infructuous.
Order pronounced in the open court on 24th October, 2025 at Chennai.