S K N N S M Society Vs CIT Exemptions (ITAT Chennai)
Income Tax Appellate Tribunal (ITAT) Chennai has set aside the rejection of 80G registration for S K N N S M Society, citing insufficient time given to the assessee to respond. The appeal arose from the order dated August 6, 2024, issued by the Commissioner of Income Tax (Exemptions) [CIT(E)], rejecting the society’s application under Section 80G(5)(iii) of the Income Tax Act, 1961. The assessee had applied for approval under Form 10AB on March 13, 2024, but was given only five days to submit additional details before the application was denied.
The tribunal found merit in the assessee’s argument that the principles of natural justice were not properly followed. The CIT(E) had issued a notice on July 11, 2024, directing the assessee to furnish additional details by July 16, 2024. Given the short response window, the assessee was unable to provide the required documents in time. The ITAT noted that proper opportunity must be granted before rejecting applications for exemptions.
The ITAT ruled that, in the interest of justice, the case should be remanded for fresh adjudication. It directed the CIT(E) to reconsider the application, ensuring a proper opportunity for the assessee to present its case. The tribunal also instructed the assessee to comply with information requests promptly. If the assessee fails to provide the necessary details, the CIT(E) will have the discretion to proceed as per law.
