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Facts
The assessee, Sri Krupa Trust, filed appeals against the orders of the CIT(E) rejecting their application for registration under Section 12A(1)(ac)(iii) and approval under Section 80G(5)(iii) of the Income Tax Act. There was a delay of 48 days in filing the appeals, which was condoned.
Held
The Tribunal condoned the delay in filing the appeals. For ITA No.1174/Chny/2025, the matter was remitted back to the CIT(E) for fresh consideration after giving the assessee an opportunity to submit required documents. For ITA No.1075/Chny/2025, the issue of approval under Section 80G(5)(iii) was also remitted to the CIT(E) for fresh adjudication.
Key Issues
Whether adequate opportunity was provided to the assessee by the CIT(E) and if the matter should be remitted back for fresh consideration.
Sections Cited
12A(1)(ac)(iii), 12AB, 80G(5)(iii), 12A
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, ‘C’ BENCH: CHENNAI
Before: SHRI SS VISWANETHRA RAVI & SHRI JAGADISH
आदेश / O R D E R PER JAGADISH, A.M: Aforesaid appeals filed by the assessee arises out of the orders of Learned Commissioner of Income Tax (Exemption), Chennai [hereinafter “CIT(E)”] dated 10.12.2024 in rejecting approval for registration u/s. 12A(1)(ac)(iii) of the Income-tax Act, 1961 (hereinafter “the Act”).
There is a delay of 48 days in filing both the appeals by the assessee. The assessee has filed condonation petitions/affidavits & 1075/Chny/2025 Sri Krupa Trust :- 2 -: stating the reasons for delay in filing the appeals. We have considered the petitions/affidavits of delay in filing the appeals and satisfied that there was sufficient cause for not filing the appeals within the prescribed time limit. Hence, the delay is hereby condoned.
ITA No.1174/Chny/2025:
3. The only ground of appeal in this appeal of the assessee is against the rejection of application filed in Form 10AB u/s. 12(1)(ac)(iii)
1. of the Act seeking registration u/s. 12AB of the Act on the ground that the assessee has not furnished the relevant documents and clarification. The assessee has filed online application on 29.06.2024 in Form 10AB u/s. 12A(1)(ac)(iii) of the Act seeking registration u/s. 12AB of the Act. The Ld. CIT(E) issued a show cause notice/questionnaire calling for relevant documents and clarifications.
However, the assessee failed to comply with the notice. Consequently, the Ld. CIT(E) rejected the application for non-submission of the required information.
Before us, the Ld. AR has submitted that adequate opportunity was not given to the assessee and the order is opposed to the provisions of law and principles of natural justice. The Ld. AR has also submitted the reason for non compliance before the Ld. CIT(E). The & 1075/Chny/2025 Sri Krupa Trust :- 3 -: Ld. AR further submitted that the Ld. CIT(E) has rejected the application for non prosecution and requested one more opportunity of hearing to file the details before the Ld. CIT(E).
On the other hand, the Ld. Departmental Representative (DR), has relied on the orders of lower authorities.
We have heard both the parties and gone through the order of the Ld. CIT(E). It is evident that the application filed by the assessee was rejected on the ground of non-compliance with the notice issued.
However, the Ld. AR has now explained the reasons for such non- compliance and has assured that the assessee is ready to submit the required information. Considering the submissions and in the interest of justice, we are of the view that one more opportunity should be granted to the assessee to present its case. Accordingly, we remit the matter back to the file of the Ld. CIT(E) for fresh consideration of the application, after affording the assessee a reasonable opportunity of being heard. We also direct the assessee to appear before the Ld. CIT(E) on the date of hearing without fail and submit all the relevant documents sought for by the Ld. CIT(E). In view of the above, the appeal filed by the assessee is allowed for statistical purposes only. & 1075/Chny/2025 Sri Krupa Trust :- 4 -:
8. In this case, the Ld. CIT(E) had rejected the assessee’s application for approval u/s. 80G(5)(iii) of the Act on the ground that the assessee had not responded to the show cause notices issued and does not have valid registration u/s. 12A of the Act. Since, we have already remitted the matter relating to registration u/s. 12A back to the file of the Ld. CIT(E) for fresh consideration, we are of the considered opinion that the issue of approval u/s. 80G(5)(iii) of the Act also requires reconsideration. Accordingly, we remit this matter as well to the file of the Ld. CIT(E) for fresh adjudication, after giving due opportunity to the assessee to clarify its objects and activities.
In the result, both the appeals filed by the assessee is allowed for statistical purposes.
Order pronounced on 07th day of July, 2025 at Chennai.