INDIAN FEDERATION OF NEUROREHABILITATION,MUMBAI vs. ITO, EXEM. WARD 1(3), MUMBAI, MUMBAI

Before us, the learned counsel for the assessee submitted that the learned CIT(E) rejected the application solely on the ground that Form No. 10AB had been filed under clause (iv) of section 12A(1)(ac), whereas according to the learned CIT(E), the application ought to have been filed under clause (iii) of the said provision. It was submitted that the defect, if any, is merely technical and procedural in nature and is capable of being rectified. It was further submitted that the assessee has already corrected the mistake and is prepared to file the application under the appropriate clause. It was, therefore, prayed that the matter be restored to the file of the learned CIT(E) for fresh consideration. The learned Departmental Representative fairly left the issue to the discretion of the Bench.

We have considered the rival submissions and perused the material available on record. We find that the impugned order has been passed solely on the ground that the application in Form No. 10AB was filed under an incorrect clause of section 12A(1)(ac). In our considered opinion, such a defect is only a technical and curable procedural irregularity and ought not to defeat the assessee’s substantive claim for registration. Once the procedural defect is capable of being rectified, the application deserves to be examined on its merits rather than being rejected outright on such technical ground.

Accordingly, in the interest of substantial justice, we set aside the impugned order and restore the matter to the file of the learned CIT(E). The assessee shall file or rectify the application under the appropriate clause, if not already done, and furnish all requisite documents and information. Thereafter, the learned CIT(E) shall consider the assessee’s application on its own merits and pass a fresh speaking order in accordance with law after affording due and effective opportunity of hearing.

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