NAMMA SAMPRADAYA CHARITABLE AND EDUCATION TRUST,BANGALORE vs. COMMISSIONER OF INCOME TAX, EXEMPTIONS, BANGALORE

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ITA 2737/BANG/2025Status: DisposedITAT Bangalore17 August 2026AY 2025-266 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal held that the rejection was based on a technical error and a bona fide mistake by the assessee. Following a coordinate bench decision, the matter was remanded for fresh consideration.

What were the facts?

The assessee trust applied for final approval under Section 80G(5) by filing Form 10AB. The CIT(Exemptions) rejected the application because the assessee selected the wrong clause in the form, despite having provisional registration.

What were the issues?

Whether an application for approval under Section 80G(5) can be rejected solely on the ground of selecting a wrong clause in the application form due to a clerical error, and if the principles of natural justice were violated by not providing an opportunity to be heard.

Which sections of the Income-tax Act were involved?

Section 80G(5)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “B’’BENCH: BANGALORE

Before: SHRI WASEEM AHMED & SHRI KESHAV DUBEY

Hearing: 04.06.2026Pronounced: 17.08.2026

PER KESHAV DUBEY, JUDICIAL MEMBER:

This appeal at the instance of the assessee is directed against the order of the ld. CIT(Exemptions), Bengaluru dated 05.09.2025 vide DIN & Order No. ITBA/EXM/F/EXM45/2025- 26/1080375656(1) rejecting the application filed for Approval u/s 80G(5) of the Income Tax Act, 1961 (in short “the Act”).

2.

The assessee has raised the following grounds of appeal:-

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3.

The brief facts of the case are that the assessee is a public charitable trust constituted on 20.08.2007. The assessee trust is carrying on its public charitable activities in the field of medical relief, education and relief to the poor, running goshala and other objects of general public utility in all parts of India. The assessee trust was registered u/s. 12A r.w.s. 12AA(1)(b)(i) of the Act vide order No. DIT(E) BLR/12A/N330/AABTM0380P/ITO(E)-2/Vol 2008-09 dated 23.09.2008 and the recognition u/s. 80G(5) was also granted vide Form No. 10AC dated 04.04.2022. Thereafter, the assessee trust filed the Form 10AB on 14.03.2025 for final registration u/s. 80G(5) of the Act.

3.1 On verification of the application in Form 10AB filed on 14.03.2025 for approval u/s. 80G of the Act, the ld. CIT(E) found that the assessee trust was supposed to file the application in form 10AB under clause (iii) of proviso to sub-section (5) of section 80G of the Act since, the assessee trust had obtained the provisional registration u/s. 80G of the Act vide form No. 10AC from AY 2023- 24 to AY 2024-25. However, the application is filed in form 10AB under item (B) of clause (iv) of first proviso to sub-section (5) of section 80G of the Act. Thus, the assessee had selected the wrong section code while applying form 10AB for approval u/s. 80G of the Act and hence, the application in form 10AB dated 14.03.2025 was rejected.

4.

Aggrieved by the order the ld. CIT(E) dated 05.09.2025, the assessee has filed the present appeal before this Tribunal.

5.

Before us, the ld. A.R. of the assessee vehemently submitted that the order passed by the ld. CIT(E), Bangalore without providing opportunity of being heard is illegal and bad in law as it is a gross

ITA No.2737/Bang/2025 Namma Sampradaya Charitable & Education Trust, Bengaluru Page 4 of 6 violation of principles of natural justice. Further, the ld. A.R. of the assessee vehemently submitted that due to a bonafide, unintentional & clerical mistake, the application was furnished under item (B) of clause (iv) of first proviso to sub-section (5) of section 80G of the Act instead of clause (iii) of proviso to sub- section (5) of section 80G of the Act. It is also submitted that under the identical facts & circumstances, the coordinate bench of the Tribunal in the case of Kimaya Ashram Charitable Trust Vs. Commissioner of Income Tax (Exemption) reported in (2025) 170 taxmann.com 376 (Pune-Trib.) has decided the issue in favour of the assessee and remanded the matter back to the ld. CIT(E) with a direction to treat the application of the assessee as filed under correct/desired section of I. Tax Act and considered the same for grant of registration u/s 12AB of the Act in accordance with law.

6.

The ld. CIT-D.R. relied on the order passed by ld. CIT(E), Bengaluru.

7.

We have heard the rival submissions and perused the materials available on record. We find that the assessee Trust was already granted provisional registration on 04.04.2022 u/s. 80G of the Act vide form No. 10AC from AY 2023-24 to AY 2024-25 and therefore, the assessee trust was required to file the application for final approval by quoting clause (iii) of proviso to sub-section (5) of section 80G of the Act instead of item (B) of clause (iv) of first proviso to sub-section (5) of section 80G of the Act. Before us, the ld. A.R. of the assessee vehemently submitted that due to an inadvertent error, the application for final registration was filed in by quoting wrong section code. We take a note of the fact that ld. CIT(E), Bangalore has rejected the application of the assessee on the sole ground of above technical error committed by the assessee trust. The assessee Trust has relied on the decision of coordinate

ITA No.2737/Bang/2025 Namma Sampradaya Charitable & Education Trust, Bengaluru Page 5 of 6 bench of the Tribunal in the case of Kimaya Ashram Charitable Trust cited (supra) wherein under identical facts and similar circumstances, the Tribunal has allowed the appeal of the assessee and remanded the matter back to the file of ld. CIT(E) with a direction to treat the application of the assessee as filed under correct/desired section of the Act and considered the same for grant of registration in accordance with law. It is evident that assessee had committed a technical mistake while filing the application for approval by quoting item (B) of clause (iv) of first proviso to sub- section (5) of section 80G of the Act instead of clause (iii) of proviso to sub-section (5) of section 80G of the Act.

7.1 Considering the totality of the facts of the case and respectfully following the above decision of the Tribunal, we find force in the argument of ld. Counsel of the assessee and accordingly we deem it fit & appropriate to remit the matter back to the file of the ld. CIT(E), Bangalore with a direction to decide the issue afresh after treating the original application for approval as filed by the assessee under the correct/desired section. The assessee is also hereby directed to file the Form 10AB for final approval within 30 days from the date of the service of this Order. Thereafter, the ld. CIT(E) after receiving the application in form 10AB by the assessee Trust shall call for the necessary documents/records/ financials/Reports etc. to satisfy himself/herself about the genuineness of the activities of the Trust and other conditions as required for granting approval u/s. 80G(5) of the Act. Needless to say a reasonable opportunity of being heard must be granted to the assessee. It is ordered accordingly.

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8.

In the result, appeal filed by the assessee is allowed for statistical purposes.

Order pronounced in the open court on 17th Aug, 2026

Sd/- Sd/- (Waseem Ahmed) (Keshav Dubey) Accountant Member Judicial Member

Bangalore, Dated 17th Aug, 2026. VG/SPS

Copy to:

1.

The Applicant 2. The Respondent 3. The CIT 4. The DR, ITAT, Bangalore. 5 Guard file By order

Asst. Registrar, ITAT, Bangalore.

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