SRI GHANTAVATHARA SWAMI KAINKARYA TRUST,KANCHEEPURAM vs. CIT (EXEMPTION), CHENNAI

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ITA 1891/CHNY/2024Status: DisposedITAT Chennai20 September 20243 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 ITAT condoned the delay in filing the appeal. The Tribunal held that the ex parte order of the CIT(E) violated principles of natural justice as the assessee did not receive notices due to technical glitches. The matter was restored to the CIT(E) for a fresh decision after hearing the assessee.

What were the facts?

The assessee-Trust filed an application for registration under Section 12AB of the Income Tax Act, 1961. The CIT(E) rejected the application ex parte due to the assessee's non-appearance. There was a significant delay in filing the appeal before the ITAT.

What were the issues?

Whether the rejection of the registration application by the CIT(E) was justified without providing the assessee an opportunity to be heard, and if the delay in filing the appeal should be condoned.

Which sections of the Income-tax Act were involved?

Section 12A(1)(ac)(iii),Section 12AB

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, B BENCH: CHENNAI

Before: SHRI ABY T. VARKEYAND

Hearing: 06.09.2024Pronounced: 20.09.2024

आदेश / O R D E R

PER ABY T. VARKEY, JM:

1.

This is an appeal preferred by the assessee against the order of the Learned Commissioner of Income Tax (Exemption), (hereinafter in short ‘the Ld.CIT(E)’), Chennai, dated 17.05.2023, rejecting the application filed by assessee-Trust on 25.11.2022 in Form No.10AB (AY -) Sri Ghantavathara Swami Kainkarya Trust :: 2 ::

u/s.12A(1)(ac)(iii) of the Income Tax Act, 1961, seeking registration u/s.12AB of the Act.

2.

At the outset, the Ld. Counsel for the assessee submitted that there is a delay of ‘361’ days in filing of this appeal. And we note from materials placed before us that due to reasons beyond the control of assessee- Trust, it was prevented from filing of Appeal within time-limit. Therefore, we condone the delay of ‘361’ days in filing of Appeal; and proceed to adjudicate the appeal on merits.

3.

The Ld. Counsel for the assessee assailing the impugned action of the Ld.CIT(E), pointed out that he has passed an ex parte order qua assessee. We note that the assessee-Trust couldn’t appear/represent before the Ld.CIT(E), which prompted the Ld CIT(E) from passing the impugned order. But, we note that it wasn’t due to deliberate omission on part of assessee-Trust; and it was because of the fact that assessee didn’t get notices from office of Ld CIT(E) due to technical glitches in the net- work/computer and hence, there was per-se violation of natural justice and therefore, we are of the considered opinion that assessee need to be granted one more opportunity before the Ld.CIT(E), and hence, we are inclined to set aside the impugned order of the Ld.CIT(E) and restore the application filed by assessee-Trust on 25.11.2022 in Form No.10AB u/s.12A(1)(ac)(iii) of the Income Tax Act, 1961, seeking registration (AY -) Sri Ghantavathara Swami Kainkarya Trust u/s.12AB of the Act back to the file of the Ld.CIT(E) to decide the same on merits after hearing the assessee.

4.

In the result, appeal filed by the assessee is allowed for statistical purposes.

Order pronounced on the 20th day of September, 2024, in Chennai.

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