L.K. CHARITABLE TRUST,CHENNAI vs. CIT, EXEMPTIONS,, CHENNAI

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ITA 1530/CHNY/2025Status: DisposedITAT Chennai15 July 2025Bench: SHRI GEORGE GEORGE K, VICE PRESIDENTAND SHRI S.R. RAGHUNATHA (Accountant Member)1 pages
AI SummaryPartly Allowed

What did the Tribunal hold?

The Tribunal noted that the CIT(E) passed an ex-parte order due to the assessee's non-response to the show-cause notice. While deprecating the assessee's attitude, the Tribunal, in the interest of justice, granted one more opportunity to the assessee.

What were the facts?

The assessee's appeal is against the order of the CIT(Exemption) rejecting their Form No.10AB for registration under Section 12A of the Income Tax Act. The rejection was based on the assessee's failure to respond to a show-cause notice.

What were the issues?

Whether the assessee should be granted another opportunity to represent their case before the CIT(E) despite a previous non-response to a show-cause notice.

Which sections of the Income-tax Act were involved?

Section 12A

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, ‘D’ BENCH, CHENNAI

Before: SHRI GEORGE GEORGE KAND SHRI S.R. RAGHUNATHA

For Respondent: Shri AR. V. Sreenivasan, CIT
Hearing: 15.07.2025Pronounced: 15.07.2025

आदेश/ O R D E R

PER GEORGE GEORGE K, VICE PRESIDENT:

1.

This appeal filed by the assessee is directed against the order of CIT(Exemption), Chennai dated 20.03.2025, rejecting Form No.10AB filed for seeking registration u/s.12A of the Income Tax Act, 1961 (hereinafter the ‘Act’).

:- 2 -: 2. At the very outset, we notice that the CIT(E) has passed ex-parte order. The reason for deciding the appeal ex-parte was that the assessee did not reply to the show-cause notice issued from the office of the CIT(E). The Ld.AR submitted that the assessee is a trust and has placed on record the details of activities of the assessee’s trust. The Ld.AR further submitted that the show-cause notice was issued on 13.03.2025 asking to submit its reply on or before 17.03.2025, which was missed by oversight. It was submitted that in the interest of justice and equity, one more opportunity may be provided to the assessee to represent its case before the CIT(E).

3.

The Ld.DR supported the order of CIT(E).

4.

We have heard rival submissions and perused the material on record. The Office of the CIT(E) had issued the show-cause notice by e-mode through ITBA/e-filing portal directing the assessee to file certain details/documents. Since there was no response by the assessee to the show-cause notice issued, the CIT(E) passed ex-parte order. It is the claim of the assessee that there was no effective service of hearing notice since it is only uploaded on the e-portal. We strongly deprecate the nonchalant :- 3 -: attitude of the assessee. However, in the interest of justice and equity, we are of the view that assessee ought to be provided with one more opportunity to represent its case and accordingly the issue is restored to the files of the CIT(E). The assessee is directed to co-operate with the Revenue and shall not seek unnecessary adjournment. It is ordered accordingly.

5.

In the result, the appeal filed by the assessee is allowed for statistical purposes.

Order pronounced in the open court on 15th July, 2025 at Chennai.

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