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Facts
The assessee trust applied for registration under Section 12AA and exemption under Section 80G. The CIT(E) rejected the application as not maintainable after the assessee failed to provide requested documents within the stipulated time. The assessee appealed this decision.
Held
The Tribunal condoned the delay in filing the appeal and admitted it. Considering the assessee's submission regarding the trustee's unfamiliarity with online operations and the interest of justice, the Tribunal set aside the order and remanded the case to the CIT(E) for a fresh hearing.
Key Issues
Whether the CIT(E) was justified in rejecting the application for exemption without providing adequate opportunity, and whether the Tribunal should grant another opportunity to the assessee?
Sections Cited
12AA, 80G
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Income Tax Appellate Tribunal, ‘B’ BENCH, CHENNAI
Before: HON’BLE SHRI MANU KUMAR GIRI & HON’BLE SHRI JAGADISH
Karaikudi Muslim Welfare Trust, Vs. The Commissioner of Income 1A, KF Towers, Opp to BSNL Office, Tax, Netaji Road, Near Bus Stand, (Exemptions) Karaikudi, Sivagangai Dist. 630 003. Chennai. [PAN: AACTK 9775A] (अपीलाथ�/Appellant) (��यथ�/Respondent) अपीलाथ� क� ओर से/ Appellant by : Shri. M. Ramasamy, C.A., ��यथ� क� ओर से /Respondent by : Shri. M. Rajan, IRS, CIT. सुनवाई क� तार�ख/Date of Hearing : 22.01.2025 घोषणा क� तार�ख /Date of Pronouncement : 27.01.2025 आदेश / O R D E R MANU KUMAR GIRI (Judicial Member) This appeal preferred by the appellant / assessee is against the impugned order dated 21.08.2024 passed by the ld. Commissioner of Income Tax(Exemption), Chennai in Application No.CIT (Exemption), Chennai /2024-25 /12AA /11107 vide DIN & Notice No.ITBA /EXM/F /EXM45/2024-25/1067838759(1).
The registry has noted delay of 08 days in filing the appeal. Considering the period of delay and reasons stated in condonation petition alongwith affidavit by the Managing Trustee of the Assessee, we condone the delay and admit the appeal for adjudication.
3. Brief facts are as under: The assessee trust applied for the registration u/s 12AA of the Income Tax Act, 1961 (‘Act’ in short) on 18.03.2024 and provisional registration was granted on 01.04.2024. The assessee also applied for the section 80G Exemption before the ld.CIT(E), Chennai by filing Form No.10AB on 18.03.2024. Thereafter, the ld.CIT(E) vide letter dated 12.07.2024 through e-filing portal requested the assessee to furnish the relevant documents / details and its clarifications either by uploading online in the e-filing portal or by post, on or before 22.07.2024. However, no response from the applicant to letter dated 12.07.2024 or notice dated 29.07.2024. Hence, having no choice, the ld.CIT(E) rejected the application as not maintainable. Assessee is in further appeal before us.
At the outset, Ld.AR for the appellant submitted that the Managing trustee is 75 yrs old and is not familiar with the online mails and digital operation etc. The Ld.AR for the appellant prayed that if an adequate opportunity of hearing is given before ld.CIT(E), assessee will file requisite details called for and prosecute the application properly. Ld.CIT-DR relied upon the order of ld.CIT(E) and prayed for dismissal of appeal.
We have gone through the orders of lower authorities and submissions addressed by the parties before us. 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 his case. The ld.AR for the assessee also filed the below mentioned undertaking as under: To The Hon'ble Members, B-Bench, Income Tax Appellate Tribunal,