Arulcheyal Kainkarrya Sabha Vs CIT (Exemptions) (ITAT Chennai)
The appeals before the Income Tax Appellate Tribunal (ITAT), Chennai, arose from the order dated 22.09.2025 passed by the Commissioner of Income Tax (Exemptions) [CIT(E)], Chennai, rejecting the assessee trust’s applications for registration under Sections 12AB and 80G of the Income Tax Act, 1961.
The assessee is a charitable trust established in 2016 with objects including promotion of Indian and oriental languages, Veda Shastras, granting scholarships and financial assistance to students, and feeding the poor and needy. The trust filed an application for registration under Section 12AB on 25.02.2025. The CIT(E) issued a notice calling for details of activities and supporting documents on or before 29.08.2025. The assessee sought adjournment. However, since the application was becoming time-barred, the CIT(E) rejected the registration on the ground that no documents or details had been furnished.
Upon hearing the Departmental Representative and examining the record, the Tribunal observed that the rejection was solely based on non-furnishing of details. It noted that the adjournment request was denied due to the impending limitation period. Considering the peculiar facts and in the interest of natural justice, the Tribunal held that the assessee should be granted one more opportunity to furnish relevant details in support of the Section 12AB application. The matter was remitted to the CIT(E) for fresh consideration on merits in accordance with law. The assessee was directed to submit the required documents without seeking unnecessary adjournments and to cooperate in the proceedings.
