TN APEX SKILL DEVELOPMENT CENTRE FOR LOGISTICS,CHENNAI vs. CIT(EXEMPTION), CHENNAI

At the outset, it is noted that there is a delay of ‘375’ days in filing of the appeal. The reason for the delay has been explained in an Affidavit (AY -) TN Apex Skill Development Centre for Logistics :: 2 ::

filed by the Managing Director of the assessee. According to the assessee, impugned order was passed by the Ld.CIT(E) on 12.01.2023 and the appeal ought to have been filed before 13.03.2023. However, according to the assessee, it was not aware of the passing of the impugned ex parte order passed by the Ld.CIT(E); and only when it accidentally accessed the e-portal of Income Tax Department, it came to know that the impugned order has been passed against assessee on 12.01.2023. According to the Ld.AR of the assessee, since, the assessee would not gain anything by not responding to the notices of the Ld.CIT(E) and the omission to check the e-mail cannot be said to be deliberate. The Ld.AR prays for restoration of application, so that the assessee would get one more opportunity before the Ld.CIT(E) and he undertakes to comply with the directions/requisitions made by the Ld.CIT(E).

Per contra, the Ld.DR opposes the plea of the assessee for one more innings before the Ld.CIT(E) and submitted that assessee was given proper opportunity, but failed to comply with the directions given by the Ld.CIT(E), therefore, the Ld.CIT(E) has rightly rejected the application and he does not want us to interfere with the impugned order of the Ld.CIT(E).

Having heard both the parties and after perusal of the records, we note that the assessee is a not-for-profit company incorporated under the (AY -) TN Apex Skill Development Centre for Logistics :: 3 ::

It is noted that assessee TNASDCL was provisionally sanctioned exemption u/s.80G(5)(iv) dated 09/02/2022 for a period of three years from 09.02.2022 to AY 2024-25. Thereafter, the assessee filed the on-line application dated 21.07.2022 in Form 10AB under clause (iii) of first proviso to sec.80G(5) of the Act seeking regular approval u/s.80G for five years, which was rejected for non-compliance on the part of assessee pursuant to notice of the Ld.CIT(E). The Ld.AR brought to our notice that e-mail on which the notices used to be served upon was of an IAS Officer, who has been transferred and the due to some glitches went to his personal mail. In view of this factual reasons, the assessee was in the dark about the notices issued by the Ld.CIT(E). And when the assessee came to know about the event of rejection of application on 15.03.2024, immediately instructed the Ld.AR to file the appeal and the delay of ‘375’ days happened in that process, which explanation, we find it to be reasonable and therefore, we condone the delay. (AY -) TN Apex Skill Development Centre for Logistics :: 5 ::

Since, the Ld.CIT(E) has passed an ex parte order qua the assessee, for the interest of justice and fair play, we deem it fit to set aside the impugned order of the Ld.CIT(E) and restore the application dated 21.07.2022, back to the file of the Ld.CIT(E) and direct the assessee to file the requisite documents called for by the Ld.CIT(E); and the Ld.CIT(E) to decide granting the approval u/s.80G(5) in accordance to law after hearing the assessee; and the Ld.AR to furnish the correct e- mail to the Office of the Ld.CIT(E).

In the result, appeal filed by the assessee is allowed.