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Facts
The three assessee trusts filed applications for registration under Section 12A(1)(ac)(iii) and approval under Section 80G(5) of the Income Tax Act. The CIT(E) rejected these applications in Form 10AD due to alleged non-compliance and non-participation of the assessees, despite notices being issued on the e-filing/ITBA portal. Some appeals also involved an 11-day delay.
Held
The Tribunal condoned the 11-day delay in filing some appeals, acknowledging a reasonable cause. It held that the CIT(E) rejected the applications for registration and approval without granting adequate opportunity of hearing to the assessees, violating principles of natural justice. Consequently, the Tribunal set aside the CIT(E)'s orders and restored the applications for fresh adjudication, directing the CIT(E) to provide proper notices and an opportunity to be heard.
Key Issues
Whether the CIT(E) was justified in rejecting the applications for registration under Section 12A/12AA and approval under Section 80G/80G(5) without providing adequate opportunity of hearing to the assessees, thereby violating principles of natural justice.
Sections Cited
12A, 12A(1)(ac)(iii), 12AA, 80G, 80G(5)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, ‘B’ BENCH, CHENNAI
Before: SHRI MANU KUMAR GIRI & SHRI S. R. RAGHUNATHA
आदेश /O R D E R PER S. R. RAGHUNATHA, ACCOUNTANT MEMBER: These six appeals filed by the assessees are directed against separate orders passed by the learned Commissioner of Income Tax (Exemptions), Chennai, dated 05.12.2024, 27.01.2025, 03.12.2024, 21.01.2025, 05.12.2024 & 27.01.2025 respectively. Since, facts are identical and issues are common, for the sake of convenience, these appeals filed by the assessee are being heard together and disposed of by this consolidated order.
At the outset, we find that there is a delay of 11 days in appeal filed by the assessee in 729 & 731/Chny/2025. After hearing from both the parties, we find that there is a reasonable cause for the assessee in not filing appeal on or before the due date prescribed under the law and thus, in the interests of justice, we condone delay in filing of appeal and admit appeal filed by the assessee for adjudication.
Before us, the ld.AR for the assessee stated that the assessee trusts have filed applications before the ld.CIT(E) as detailed below:
a) SLP Govindarajan Vijayalakshmi Educational Charitable Trust: Application for Date Section Registration in Form 10AB 28.06.2024 12A(1)(ac)(iii) Approval u/s.80G in Form 10AB 02.07.2024 80G(5)(ii) b) M. Sundaram Educational Charitable Trust: Application for Date Section Registration in Form 10AB 27.06.2024 12A(1)(ac)(iii) Approval u/s.80G in Form 10AB 08.07.2024 80G(5)(ii)
:-3-: ITA. Nos.:727 to 732/Chny/2025 c) Sri Kannika Esakkiammal Charitable Trust: Application for Date Section Registration in Form 10AB 27.06.2024 12A(1)(ac)(iii) Approval u/s.80G in Form 10AB 08.07.2024 80G(5)(ii)
We find from the grounds that the assessee has filed the relevant documents/details along with statutory Form No.10AB, but the ld.CIT(E) has rejected the application for non-compliance due to non-participation of the assessee in further proceedings. Hence, assessee prayed for an opportunity of hearing before the Ld.CIT(E).
The ld.DR relied on the impugned order and prayed for confirming the same.
We have heard both the parties, perused the record and impugned orders. It is an undisputed fact on record that the notices were issued by the ld.CIT(E) on the e-filing/ITBA portal.
It is a matter of admitted fact that the assessees had filed an application for registration u/s 12A(1)(ac)(iii) and approval u/s.80G(5) of the Act in Form No. 10AB as per the above table before CIT(E), Chennai. However, the ld.CIT(E) passed the order in Form 10AD rejecting both the registration u/s.12AA and approval u/s.80G of the Act filed in Form 10AB due to non-compliance of the notices as per the impugned order.
In our considered view, since the Ld.CIT(E) have passed the order by rejecting the application without participation of the assessees, one more opportunity needs to be given in the interest of natural justice.
:-4-: ITA. Nos.:727 to 732/Chny/2025 9. Therefore, keeping in mind the principles of natural justice we set aside and restore the application filed for registration u/s.12A as well as approval u/s.80G(5) of the Act, in form 10AB by all the 3 assesses back to the file of the Ld.CIT(E) with a direction to send notices on the assessee through registered email ID, eportal or as per provisions of the Act and pass speaking order after giving adequate opportunity to the assessee as per law. Needless to say the assessees should be diligent in responding to the notices and furnish all the required documents during the proceedings without seeking unnecessary adjournments and providing correct address and email ID. Thus, the matter is restored to the CIT(E), Chennai. If assessee fail to appear then, no lenient view will be taken by the ld.CIT(E).
In the result, all the six appeals filed by the assessees are allowed for statistical purposes.
Order pronounced in the open court on 11th June, 2025 at Chennai.