Sri Ramajayam Educational Trust Vs CIT (Exemption) (ITAT Chennai)
ITAT Chennai addressed an appeal by Sri Ramajayam Educational Trust regarding the rejection of its Form 10AB application for approval under Section 10(23C) of the Income Tax Act, 1961. The CIT(E) rejected the application on 27.06.2024, stating that the trust should have applied under clause (iii) instead of clause (ii) of the first proviso to Section 10(23C). The Tribunal observed that the rejection was based solely on a technical error, as the trust had already obtained provisional approval for AY 2024-25 to AY 2026-27 and was seeking permanent registration. ITAT noted that the trust was not given an opportunity to rectify the mistake, violating the principles of natural justice. Furthermore, despite the CBDT’s extension of the Form 10AB filing deadline to 30.06.2024, the trust was advised to reapply rather than being allowed to amend the existing application. ITAT directed CIT(E) to consider the application under the correct clause and review it on merit. The appeal was allowed for statistical purposes.
FULL TEXT OF THE ORDER OF ITAT CHENNAI
Aggrieved by rejection of application filed in Form No.10AB on 02.01.2024 for seeking approval under clause (ii) of first proviso to section 10(23C) of the Income Tax Act, 1961 (‘ACT’ in short) vide impugned order dated 27.06.2024, the assessee is in appeal before us. The registry has noted a delay of 28 days in the appeal, the condonation of which has been sought by Ld. AR on the strength of affidavit of Managing trustee of the assessee trust. We have perused the reasons and condoned the delay. The appeal is admitted for adjudication.
