SWANUBHUTI FOUNDATION,MUMBAI vs. COMMISSIONER OF INCOME TAX (EXEMPTION), MUMBAI, MUMBAI

Learned counsel for the assessee, at the outset, submitted that the assessee had inadvertently selected clause 12A(1)(ac)(vi)(B) instead of clause 12A(1)(ac)(iii) while filing the application, which was a bona fide mistake. Learned counsel submitted that the assessee had filed the application under the wrong clause and that the learned CIT(E) rejected the application on that basis. It was submitted that the assessee may be permitted to file the appropriate application under the correct clause and that the matter may be restored to the file of the learned CIT(E) for fresh consideration.

Learned counsel further submitted that only one opportunity was afforded by the learned CIT(E) vide notice dated 31.01.2026 and that the assessee may be granted an opportunity to rectify the mistake and furnish the necessary application and documents under the appropriate clause. Placing reliance on the following decisions, Ld. Counsel submitted that the Ld. CIT(E) is not justified in denying registration without issuing show cause notice for the discrepancy in the application.

We have heard the rival submissions and perused the orders of the authorities below. On perusal of the order of the learned CIT(E), we observe that the application filed by the assessee was rejected on the ground that the assessee had filed the application under section 12A(1)(ac)(vi)(B) of the Act. The assessee has specifically contended in Ground No. 4 that clause 12A(1)(ac)(vi)(B) was inadvertently selected instead of clause 12A(1)(ac)(iii), which was a bona fide mistake.

It is also observed that the learned CIT(E) had afforded an opportunity to the assessee vide notice dated 31.01.2026. However, considering the specific contention of the assessee that the wrong clause was selected inadvertently and that the assessee seeks consideration under the appropriate clause, we deem it appropriate, in the interest of justice, to restore the matter to the file of the learned CIT(E). The case laws relied on by the Ld. Counsel also supports his contentions.

Accordingly, we restore the matter to the file of the learned CIT(E), who shall consider the application of the assessee under the appropriate clause of section 12A(1)(ac)(iii), as may be applicable, after permitting the assessee to file the required corrected application and documents. The learned CIT(E) shall decide the 3 application afresh in accordance with law after providing adequate opportunity to the assessee.

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