GRV TRUST,COIMBATORE vs. CIT, EXEMPTION,, CHENNAI

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ITA 3147/CHNY/2024Status: DisposedITAT Chennai19 February 2025Bench: SHRI GEORGE GEORGE K (Vice President), SHRI S.R. RAGHUNATHA (Accountant Member)1 pages

In favour of the assessee: the assessee's appeal was allowed. From the AI summary of this appeal.

AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the CIT(E) erred in rejecting the application without considering the assessee's request for adjournment. The matter was restored to the CIT(E) for reconsideration on merits after affording a reasonable opportunity of being heard.

What were the facts?

The assessee's application for registration under Section 12AB of the Income Tax Act was rejected by the CIT(E). The assessee had sought an adjournment to furnish required details after receiving a show-cause notice, but the CIT(E) passed the order without considering this request.

What were the issues?

Whether the CIT(E) rightly rejected the registration application without considering the assessee's request for adjournment to furnish details.

Which sections of the Income-tax Act were involved?

Section 12AB

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, ‘B’ BENCH, CHENNAI

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

Hearing: 18.02.2025Pronounced: 19.02.2025

O R D E R

PER GEORGE GEORGE K, VICE PRESIDENT:

1.

This appeal at the instance of the assessee is directed against CIT(Exemption), Chennai, order dated 18.10.2024, rejecting application for registration u/s.12AB of the Income Tax Act, 1961 (hereinafter called ‘the Act’).

2.

At the very outset, we notice that CIT(E) has rejected the assessee’s application for registration u/s 12AB of the Act stating that assessee did not file requisite details required to be furnished in pursuance to the show cause notice issued from the Office of the CIT(Exemption) (show cause notice dated 07.10.2024). The Ld.AR submitted that the assessee had filed an application dated 08.10.2024 seeking time to file requisite details sought for in the show cause notice dated 07.10.2024. A copy of acknowledgement for filing adjournment application is placed on record. It was submitted that CIT(E) without taking notice of adjournment application seeking time by two weeks rejected the assessee’s application for registration u/s.12AB of the Act vide impugned order dated 18.11.2024. It was submitted in the interest of justice and equity, the matter may be restored to file of the CIT(E), so that requisite details can be placed before the CIT(E) and the CIT(E) may be directed to consider the same before a decision is taken on merits.

3.

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

4.

We have heard rival submissions and perused materials on record. The Office of the CIT(E) vide show cause notice dated 07.10.2024 had directed the assessee trust to furnish relevant documents / evidences in support of its claim for registration u/s.12AB of the Act. The assessee on receipt of hearing notice filed a letter dated 08.10.2024 seeking two weeks time to file requisite details. However, CIT(E) without taking notice of adjournment application submitted by the assessee trust passed the impugned order dated 18.10.2024 rejecting application of the assessee for registration u/s.12AB of the Act. In the interest of justice and equity, we restore the matter to the file of CIT(E). We direct the CIT(E) to reconsider the application on merits, after affording reasonable opportunity of being heard to the assessee. The assessee trust is directed to co-operate with the Revenue and shall not seek unnecessary adjournment in the matter.

5.

In the result, appeal filed by the assessee is allowed for statistical purposes. Order pronounced in the open court on 19th February, 2025.

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