SHREE LAKSHMI TRUST,MADURAI vs. CIT, EXEMPTIONS,, CHENNAI

This appeal filed by the assessee is directed against the order dated 15.04.2024 passed by the ld. Commissioner of Income Tax (Exemption), Chennai in rejecting the application filed in Form 10AB under clause (iii) of first proviso to section 80G(5) of the Income Tax Act, 1961 [“Act” in short].

We find that this appeal is filed with a delay of 144 days. The assessee filed an affidavit for condonation of delay stating the reasons. Upon hearing both the parties and on examination of the said affidavit, we find the reasons stated by the assessee are bonafide, which really prevented in filing the appeal in time. Thus, the delay is condoned and admitted the appeal for adjudication.

The assessee raised 8 grounds of appeal amongst which, the only issue emanates for our consideration as to whether the ld. CIT(E) is justified in rejecting the application filed in Form 10AB seeking approval under clause (iii) of first proviso to section 80G(5) of the Act.

We note that the assessee filed online application on 09.10.2023 in Form No. 10AB seeking approval under clause (iii) of first proviso to section 80G(5) of the Act. The ld. CIT(E), while processing the application, asked the assessee to show-cause as to why its application should not be rejected on account of reasons mentioned in para 2 & 3 of the impugned order. For having no such details, the ld. CIT(E) rejected the application of the assessee.

The ld. AR Shri Girish Kumar, Advocate submits that the assessee trust was not given sufficient opportunity for filing relevant details as required by the ld. CIT(E). He further submits that the assessee is ready to file all relevant details in response to the show- cause notice issued by the ld. CIT(E) and prayed that one more opportunity may be afforded to the assessee to pursue its case before the ld. CIT(E).

The ld. DR Shri R. Clement Ramesh Kumar, CIT opposed the same.

On perusal of para 3 and 4 of the impugned order, we note that the ld. CIT(E) proceeded to reject the application seeking approval under section 80G of the Act for non-compliance of furnishing details in response to the show-cause notice, thereby, clearly establishes that the assessee has no opportunity before the ld. CIT(E). Taking into consideration the submissions of the ld. AR and the ld. DR and in the interest of justice, we deem it proper to remand the matter back to the file of the ld. CIT(E) for fresh consideration. Thus, the ground raised by the assessee is allowed for statistical purposes.

In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced on 23rd January, 2025 at Chennai.