THE REV ELIAS BRAZ DIAS TRUST,MUMBAI vs. CIT EXEMPTION , MUMBAI

It is submitted by the Ld. AR that it was an inadvertent mistake which cannot be the sole reason for rejection of assessee’s application for registration u/s 12AB of the Act. Ld. AR placed his reliance on the decision of ITAT Mumbai in the case of Kaushaliyadevi Atmaram Singhania Charitable Trust vs. CIT Exemption Mumbaiin ITA No.6320/Mum/2024, wherein under similar facts and circumstances, the issue is remitted back to the file of Ld. CIT(E) for fresh consideration. Ld. AR also relied on the decision of ITAT Mumbai in the case of Shree Saisewa Charitable Sanstha, Mumbai vs. Commissioner of Income Tax (Exemptions), Mumbai in ITA No.1523 and 1525/Mum/2024 for assessment year 2024-25, wherein the assessee’s appeal was allowed for statistical purposes on account of principle of natural justice as the assessee was not provided with sufficient opportunities of being heard by the Ld. CIT(E) and the mistake in filing of application under wrong Clause was considered as technical mistake.

It is also submitted by Ld. AR that while the application of assessee was rejected on account of mistake in opting the correct clause of section 12A(1)(ac) of the Act, the assessee, in order to regularize the provisional registration, had filed a fresh application u/s 10AB on 23.02.2026. It is submitted that since the

The Ld. DR on the other hand, supported the order of Ld. CIT(E), but has not objected if the matter is restored back to the file of Ld. CIT(E) for fresh consideration.

We have considered the rival submissions, perused the material available on record and decisions relied upon by the assessee. Admittedly, the application of assessee for approval u/s 12AB was rejected merely on the ground that the assessee has opted a wrong clause of section 12A(1)(ac). Such mistakes are being consistently treated or considered to be the technical faults or procedural mistakes, those can be cured by the assessee, if such issue has been raised by the Ld. CIT(E) during the proceedings and the assessee was allowed to correct the same, but not to make it a cause for rejection of the application under for 10AB.

Under such circumstances, we find it appropriate to restore this matter back to the file of Ld. CIT(E) to revisit the application of assessee and accordingly registration u/s 12AB of the Act after considering the merits of the case. It is further clarified that the fresh application made by the assessee for grant of registration on 23.02.2026 may be considered from the original date of 3

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