Case Law Details
Sri Jeyamkonda Choleeswara Soundaranayaki Amman Kumbhabisheka Malar Kyushu Vs ITO (ITAT Chennai)
The case of Sri Jeyamkonda Choleeswara Soundaranayaki Amman Kumbhabisheka Malar Kyushu vs. ITO (ITAT Chennai) revolves around a trust’s erroneous application for registration under the Income Tax Act.
The trust in question mistakenly applied for registration under section 12A(1)(ac)(ii) instead of 12A(1)(ac)(iii) of the Income Tax Act. This error led to the rejection of the application by the Commissioner of Income Tax (Exemption) on technical grounds. However, upon appeal, the ITAT Chennai acknowledged the technical mistake made by the trust and directed for the matter to be reexamined.
The delay in filing the appeal was condoned by the ITAT, considering the circumstances beyond the control of the assessee. The ITAT emphasized the need for a fair opportunity for rectification before outright rejection of the application.
In its decision, the ITAT Chennai recognized the technical error and deemed it fit for reevaluation. The trust was advised to file a fresh application under the correct provision of the Income Tax Act. The ITAT’s directive aimed at ensuring procedural fairness and proper adjudication of the trust’s application.
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