FOUNDATION FOR GUINDY INDL ESTATE MAINTANANCE & INFRASTRUCTURE UPGRADATION,CHENNAI vs. CIT (EXEMPTIONS), CHENNAI

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ITA 1456/CHNY/2024Status: DisposedITAT Chennai26 July 2024Bench: Shri S.S. Viswanethra Ravi (Judicial Member), Shri S.R. Raghunatha (Accountant Member)3 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal found that the assessee was prevented by a reasonable cause and set aside the CIT(E)'s order. The matter was remanded back to the CIT(E) for fresh consideration.

What were the facts?

The assessee's application for registration under Section 12A(1)(ac)(ii) was rejected by the CIT(E) for non-compliance with a notice. The assessee explained the non-compliance was due to reasonable cause and offered to furnish all details.

What were the issues?

Whether the rejection of the registration application by the CIT(E) due to non-compliance with a notice was justified, and if the assessee had reasonable cause for non-compliance.

Which sections of the Income-tax Act were involved?

Section 12A(1)(ac)(ii)

AI-generated summary — verify with the full judgment below

Before: Shri S.S. Viswanethra Ravi & Shri S.R. Raghunatha

Hearing: 22.07.2024Pronounced: 26.07.2024

O R D E R

PER S.S. VISWANETHRA RAVI, JUDICIAL MEMBER:

1.

This appeal filed by the assessee is directed against the order dated 09.04.2024 passed by the ld. Commissioner of Income Tax (Exemption), Chennai under section 12A(1)(ac)(ii) of the Income Tax Act, 1961 [“Act” in short] in rejecting the application filed in Form No. 10AB and cancelling the provisional approval granted vide order dated 12.08.2022.

2.

The Ld. CIT(E) rejected the application filed on 04.10.2023 in Form No. 10AB under section 12A(1)(ac)(ii) of the Act on the ground that the assessee failed to comply with the notice dated 23.03.2024 issued for filing relevant documents/details and its clarification on or before 30.04.2024.

3.

By filing an affidavit explaining the reasons for not complying with the notice issued by the ld. CIT(E) dated 23.03.2024, the ld. AR Shri N.V. Balaji, Advocate submits that all the details were already available before the ld. CIT(E) for consideration of the application filed in Form AB under section 12A(1)(ac)(ii) of the Act. The ld. AR further submitted that the assessee is ready to furnish all the details if the Tribunal afford an opportunity and prayed to remand the matter to the file of the ld. CIT(E) for consideration.

4.

The ld. DR Shri R. Clement Ramesh Kumar, CIT relied on the order of the ld. CIT(E).

5.

As discussed above, we note that the assessee was prevented by reasonable cause as explained in the duly notarized affidavit for not complying with the notice issued by the ld. CIT(E) dated 23.03.2024 in filing relevant documents/details and its clarification on or before 30.04.2024 and thus, the order of the ld. CIT(E) is set aside. Since the ld. AR prayed to afford an opportunity to furnish complete details as may be required by the ld. CIT(E), we deem it proper in the interest of justice to remand the matter back to the file of the ld. CIT(E) for his consideration afresh. The assessee is also directed to furnish relevant details as may be required by the ld. CIT(E) in order to consider the application filed in Form 10AB. Thus, grounds raised by the assessee are allowed for statistical purposes.

6.

In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced on 26th July, 2024 at Chennai.

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