THE NALMANAM,CHENNAI vs. CIT, EXEMPTIONS,, CHENNAI

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ITA 1699/CHNY/2024Status: DisposedITAT Chennai03 September 2024Bench: HON’BLE SHRI ABY T. VARKEY, JM AND HON’BLE SHRI MANOJ KUMAR AGGARWAL (Accountant Member)2 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal held that the application should not be rejected on mere technical grounds. The CIT(E) was directed to grant the assessee an opportunity to rectify the error and then dispose of the application on merits.

What were the facts?

The assessee trust filed an application for approval under Section 80G in Form No.10AB, but mistakenly applied under clause (ii) instead of the applicable clause (iii). This led to the rejection of their application by the CIT(E).

What were the issues?

Whether an application for registration under Section 80G can be rejected solely on the ground of a technical error in selecting the wrong clause, without providing an opportunity to rectify it.

Which sections of the Income-tax Act were involved?

Section 80G

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “A” BENCH, CHENNAI

Before: HON’BLE SHRI ABY T. VARKEY, JM & HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM

आयकर अपीलीय अिधकरण “ए” �ायपीठ चे�ई म�। IN THE INCOME TAX APPELLATE TRIBUNAL “A” BENCH, CHENNAI माननीय �ी एबी टी. वक�, �ाियक सद" एवं माननीय �ी मनोज कुमार अ'वाल ,लेखा सद" के सम)। BEFORE HON’BLE SHRI ABY T. VARKEY, JM AND HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM आयकरअपील सं./ The Nalmanam CIT (Exemption) #1/23, 1st Street, बनाम/ Chennai. South High Court Colony Vs. Villivakkam, Chennai-600 049. �थायीलेखासं./जीआइआरसं./PAN/GIR No. AAATT-4976-C (अपीलाथ�/Appellant) : (� थ� / Respondent) अपीलाथ�कीओरसे/ Appellant by : Shri D. Anand (Advocate) - Ld.AR � थ�कीओरसे/Respondent by : Shri Nilay Baran Som (CIT) -Ld. CIT-DR सुनवाईकीतारीख/Date of Hearing : 21-08-2024 घोषणाकीतारीख /Date of Pronouncement : 03-09-2024 आदेश / O R D E R Manoj Kumar Aggarwal (Accountant Member)

1.

Aggrieved by rejection of an application filed in Form No.10AB on 30.09.2023 for seeking approval under clause (ii) of first proviso to sub- section (5) of Sec.80G vide impugned order dated 07.03.2024, the assessee is in further appeal before us.

2.

From the record, it emerges that the assessee trust filed an application in Form No.10AB on 30.09.2023 seeking registration under clause (ii) of first proviso to sub-section (5) of Sec.80G. Upon perusal of paras- 3 & 4 of order, it could be seen that the application has been rejected in view of the fact that the assessee was having provisional registration and it had filed application under clause (ii) to first proviso to Sec.80G(5) whereas it ought to have applied under clause (iii) which was applicable to the case of the assessee. Consequently, the application was rejected as not maintainable and the approval was also cancelled as per statutory provisions. Aggrieved, the assessee is in further appeal before us.

3.

We are of the considered opinion that the application ought not to be rejected on mere technical grounds. The wrong selection of clause may be due to an inadvertent error and the same may be in view of the fact that new regime of registration of trust was brought in place very recently. The applicant ought to have been granted an opportunity to rectify the error. Therefore, we direct Ld. CIT(E) to grant an opportunity to the assessee to rectify the mistake and thereafter, proceed for disposal of application on merits after affording reasonable opportunity of hearing to the assessee. The assessee is directed to substantiate the same.

4.

The appeal stand allowed for statistical purposes. Order pronounced on 3rd September, 2024 Sd/- Sd/- (ABY T. VARKEY) (MANOJ KUMAR AGGARWAL) �ाियक सद" /JUDICIAL MEMBER लेखा सद" / ACCOUNTANT MEMBER चे5ई Chennai; िदनांक Dated :03-09-2024 DS आदेशकीFितिलिपअ'ेिषत/Copy of the Order forwarded to : 1. अपीलाथ�/Appellant 2. � थ�/Respondent 3. आयकरआयु>/CIT Chennai. 4. िवभागीय�ितिनिध/DR 5. गाडCफाईल/GF

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