SRI KARUNAKARAN CHARITABLE TRUST,ALAPPUZHA vs. THE COMMISSIONER OF INCOME TAX EXEMPTION, KOCHI

The appellant is a charitable trust registered under the provisions of section 12AA of the Income Tax Act, 1961 (the Act). The appellant had been granted approval u/s. 80G of the Act up to 31.01.2021. The appellant sought renewal of approval u/s. 80G from 01.04.2021 and got provisional approval from 28.05.2021 to AY 2024- Sri Karunakaran Charitable Trust 25. Before expiry of the provisional approval, the appellant filed application for approval in Form No. 10AB. The learned Commissioner of Income Tax (Exemption) vide letter dated 23.09.2024 rejected approval u/s. 80G on the ground that the appellant had failed to comply with the show cause notice issued on 22.08.2024.

Being aggrieved, the appellant is in appeal before us in the present appeal.

We have carefully perused the impugned order, find that the Commissioner of Income Tax (Exemption) had not afforded reasonable opportunity to respond to the show cause notice issued to the assessee, as it is evident from the impugned order that only one show cause notice was issued to the appellant that too granting short period to respond to the show cause notice and, therefore, in the interest of justice the matter is restored to the file the Commissioner of Income Tax (Exemption) to dispose of the application afresh in accordance with law after affording reasonable opportunity of hearing to the appellant.

In the result, appeal filed by the assessee stands partly allowed.