SWAMI VIVEKANANDA SEVA KENDRA,KANCHIPURAM vs. CIT, EXEMPTION,, CHENNAI

The assessee has filed an online application on 02.01.2024 in form No.10AB under clause (iii) to first proviso to Section 10(23C) of the Income Tax Act, 1961 (in short ‘’the Act’’) seeking approval u/s.10(23C) (iii) of the Act. The ld. CIT( E) on receipt of application has directed the assessee to submit necessary documents to prove the genuineness of activities of the trust. Ld. CIT(E) has issued several notices, however there was no response from assessee. Hence, the ld. CIT(E) rejected the application. Aggrieved, assessee preferred an appeal before us.

Before us, ld. Counsel for the appellant submitted that the ld. CIT(E) had not properly followed the principles of natural justice in true spirit. Ld. Counsel for the appellant further prayed that if an adequate opportunity of hearing is given before the ld. CIT(E), assessee will prosecute the case properly. Per contra, the Ld. CIT-DR pleaded for dismissal of the appeal on the ground that the assessee failed to appear before the CIT(E).

We have gone through the order of CIT(E) and submissions addressed by both the parties. We are of the considered view that in the interest of justice assessee should be given one more opportunity before the ld. CIT(E) to file necessary documents and prosecute its case. We are also conscious of the fact that the assessee has not filed the requisite response within the time frame as asked by the ld. CIT(E) as the Managing Trustee was actively involved in social service activities and also due to sudden ill health. Therefore, in the light of aforesaid factual position we deem it fit to set aside this appeal to the file of ld. CIT(E) for denovo adjudication seeking approval u/s.10(23C) (iii) of the Act. The ld. CIT(E) who shall proceed for denovo adjudication of application in form No.10AB under clause (iii) to first proviso to Section 10(23C) of the Act after providing proper opportunity of hearing to the assessee. The assessee is directed to substantiate its case forthwith without any fail, failing which ld.CIT(E) shall be at liberty to proceed with the application filed in form 10AB as per law.

In the result, the appeal of the assessee is allowed for statistical purpose.