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Facts
The assessee, an old trust running an educational institution, applied for renewal of its 80G registration. The application was rejected because the assessee selected a wrong sub-clause in the form, which was later attempted to be corrected through a curative application that was also rejected.
Held
The Tribunal held that selecting the wrong section is not a ground to reject the application, especially when the assessee is an old trust with existing registrations. The Tribunal found merit in the assessee's claim that the wrong section was selected inadvertently.
Key Issues
Whether the rejection of an 80G registration renewal application solely due to inadvertent selection of a wrong section is justified, or if the assessee should be given an opportunity to rectify the error.
Sections Cited
80G, 12A
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Income Tax Appellate Tribunal, “E” BENCH, MUMBAI
Before: SMT. BEENA PILLAI & SHRI OMKARESHWAR CHIDARA
Per: Smt. Beena Pillai, J.M.: The present appeal filed by the assessee arises out of order dated 24/05/2025 passed by CIT(Exemptions), Mumbai for assessment year 2024-25 on following grounds of appeal :
1. In the facts and circumstances of the case and in law, the leaned CIT (Exemption) erred in not granting registration u/s 80G[5] of ITA, 1961, and rejecting the Application for the same just because a wrong option of fresh certificate was selected instead of renewal A.Y. 2024-25 Khairul Islam Higher Education Society of the said certificate that too without granting an opportunity rectify the clerical error.” Brief facts of the case are as under:
2. The assessee is registered as a Trust under Bombay Public Trust Act 1950 with Charity Commissioner, Mumbai. It is running Maharashtra College of Arts, Science and Commerce at Jehangir Boman Balhram Road, Mumbai since 1971. It's getting Government grants for salary of teaching staff. All its objects are wholly and exclusively for Educational purposes. 2.1 It is approved under Section 12A up to 31-3-26 and u/s 80G provisional approval was granted upto 31-3-2024. It applied for renewal of 80G approval on 18/5/2024 which was within time, but the application was rejected on the grounds that the application was made under wrong provision being section 80G(5)(iv)(B) 2.2 Hence a curative application was filed on 2/12/2024 under Section 80G(5)(iii). However, the said application was also rejected citing late filing, ignoring the submissions of the assessee. 2.3 Selection of wrong Section is no ground to reject application u/s 80G. There was no delay in filing application as the first application was filed in time and 2nd application was a curative one to correct the Selection of wrong Section in first application.
The Ld.AR submitted that, the assessee being an old trust it had to apply for renewal of 80G u/s. 80G(5)(iii) as against 80G(v)(iv)(b). He thus submitted that the registration u/s.12A is available to the assessee and relied on the decision of Coordinate Bench of this Tribunal in case of Rotry Charity Trust vs. CIT(E)
On the contrary, the Ld.DR relied on the orders passed by the authorities below.
We have perused the submissions advance by both sides in the light of record placed before us.
It is noted that the assessee is admittedly an old trust having a valid registration under section 12A and 80G. 4.1 It is noted that while filing Form for final registration in Form 10AB has inadvertently mentioned the wrong section as sub- clause (B) of clause (iv) of first proviso to subsection (5) of section 80G instead of clause (iii) of first proviso to subsection (5) of section 80G 4.2 From the perusal of provisions applicable to the facts of present case, in our considered view, there is merit in claim of the Id. AR that assessee has selected the wrong section code inadvertently while filing the application for final registration in Form 10AB 4.3 In view of these we remit the issue back to the file of Ld.CIT(E), with a direction to consider the application under Clause (iii) to first proviso to section 80G(5) of the Act, and to decide the application of the assessee for final approval as possible before the expiry of the provisional approval granted in order to enable the assessee to have the benefit of section 80G without any break. Accordingly the grounds raised by the assessee stands allowed for statistical purposes.
A.Y. 2024-25 Khairul Islam Higher Education Society In the result the appeal filed by the assessee stands partly allowed for statistical purposes. Order pronounced in the open court on 30/09/2025