CONSTRUCTION LABOURS WELFARE TRUST,CHENNAI vs. ITO, EXEMPTION WARD-3,, CHENNAI

Both the appeals filed by the assessee are directed against different orders dated 07.11.2024 and 08.11.2024 passed by the ld. Commissioner of Income Tax (Exemption), Chennai rejecting the applications dated 15.05.2024 in Form No. 10AB under section 12A(1)(ac)(iii) of the Income Tax Act, 1961 [“Act” in short] seeking registration under section 12AB of the Act as well as seeking approval under section 80G of the Act respectively.

Since issues raised in both the appeals are similar based on the same identical facts, with the consent of both the parties, we proceed to hear the appeals together and pass consolidated order for the sake of convenience.

We find both the appeals are filed with a delay of 201 days. The assessee filed affidavits for condonation of delay stating the reasons. Upon hearing both the parties and on examination of the said affidavit, we find the reasons stated by the assessee are bonafide, which really prevented in filing the appeal in time. Thus, the delay is condoned and admitted the appeals for adjudication.

We note that the assessee filed online application on 15.05.2024 in Form No. 10AB under section 12A(1)(ac)(iii) of the Act seeking registration under section 12AB of the Act as well as application in Form No. 10AB under clause (iii) of first proviso to section 80G(5) of the Act seeking approval under section 80G of the Act. The ld. CIT(E), while processing the application, asked the assessee to furnish certain documents including Note on activities and annual accounts/financial statements of the Institution, certified copies of certain important documents, etc. mandatorily required for verification. Since the assessee could not furnish the details, the ld. CIT(E) rejected the application filed in Form 10AB seeking registration under section 12AB of the Act as well as seeking approval under section 80G of the Act.

The ld. AR Shri Y. Sridhar, CA submits that the Managing Trustee apart from managing the affairs of the assessee-trust, actively engaged in public duties as Chairman of the Tamil Nadu Construction Workers Welfare Board and president of the Tamil Nadu Construction Workers Central Union and owning to these responsibilities, frequently travelling across Tamil Nadu and remained preoccupies with the welfare and union related activities. Non-furnishing of details sought for is neither wilful nor wanton, but due to the reasons beyond its control. Thus, the ld. AR prayed for affording one more opportunity for filing the details as called for.

The ld. DR Shri C.N. Bipin, CIT drew our attention to para 2.2 & 3.1 of the impugned order and submits that the ld. CIT(E) afforded various opportunities to the assessee for furnishing the details, but, it was not availed.

Taking into consideration of the submissions of the ld. AR and the ld. DR, in the interest of justice, we deem it proper to remand the matter to the file of the ld. CIT(E) to afford one more opportunity to the assessee for furnishing the details for verification for grant of registration under section 12AB of the Act as well as approval under section 80G of the Act and decide the issue afresh after considering the details for processing the applications as may be filed by the assessee. Thus, the grounds raised by the assessee in both the appeals are allowed for statistical purposes.

In the result, both the appeals filed by the assessee are allowed for statistical purposes. Order pronounced on 24th October, 2025 at Chennai.