TAMIL FILM PRODUCERS COUNCIL,CHENNAI vs. CIT EXEMPTIONS, CHENNAI

The assessee / applicant filed an application on in Form No.10AB seeking approval u/s 80G(5)(iii) of the Income Tax Act, 1961 (‘Act’ in short) on 28.06.2024. Thereafter, the ld.CIT(E) vide letter / show cause notice dated 20.09.2024 & 23.10.2024 / 04.12.2024 requested the assessee to furnish the requisite details and documents and its clarifications. However, the assessee failed to produce legible copy of society rules & regulations and bye-laws and complete details with necessary documentary evidences to prove the genuineness of the activities of the society. Hence, the ld.CIT(E) rejected the application referred supra as not maintainable.

The learned counsel for the assessee pleaded for one more opportunity of hearing before the CIT(E) to substantiate its application with all requisite evidences. The Ld. CIT-DR pleaded for dismissal of the appeal.

We have heard rival submissions and perused records. We are of the considered view that in the interest of justice assessee should be given one more opportunity before ld.CIT(E) to prosecute the application as referred supra filed in Form 10AB. The ld.AR for the assessee also assured the bench that the assessee will file all necessary requisites/details asked by the ld.CIT(E). Therefore, in the light of above assurance/undertaking, we set aside the impugned order and remit the appeal back to the file of ld.CIT(E) to hear the application afresh, after providing proper opportunity of hearing to the assessee, subject to cost of Rs.5,000/- which shall be deposited by the assessee within 30 days from the date of receipt of the order to ‘Tamil Nadu State Legal Services Authority’ at Hon’ble High Court of Madras. The proof of the cost deposit will be furnished by the Assessee before Ld.CIT(E). The assessee is directed to substantiate its case with all evidence and documents, if any, forthwith without any fail, failing which Ld. CIT(E) shall be at liberty to proceed with proceedings on merits as per law. The ld. counsel, who appeared also assured the bench that he will ensure that the assessee will prosecute the case diligently.

In the result, appeal filed by the assessee is allowed for statistical purposes. Order pronounced in the open court on 24th April, 2025