SHREE ANNAPURNA KSHETRA MAHESHWARI MAHILA CHARITABLE TRUST,INDORE vs. COMMISSIONER OF INCOME TAX (EXEMPTION), BHOPAL, BHOPAL
What did the Tribunal hold?
The Tribunal condoned the delay in filing the appeals and set aside the orders of the CIT(Exemption). The matter was remanded for de novo adjudication, directing the CIT(Exemption) to consider the applications under the correct sections and provide an opportunity of hearing.
What were the facts?
The assessee, a charitable trust, inadvertently applied for registration under the wrong section of the Income Tax Act due to confusion with new provisions. This led to the rejection of its applications for registration and approval by the CIT(Exemption).
What were the issues?
Whether a technical mistake in selecting the wrong section for registration/approval under the Income Tax Act warrants rejection of the application, and if the delay in filing appeals can be condoned.
Which sections of the Income-tax Act were involved?
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, INDORE BENCH, INDORE
Before: SHRI B.M. BIYANI & SHRI PARESH M. JOSHI
आदेश/ O R D E R
Per B.M. Biyani, A.M.:
The captioned three (3) appeals, involving the issues of registration u/s 12A/12AB and approval u/s 80G, are filed by same assessee. Since the underlying facts and issues are inter-related, they were heard together and are being disposed of by this single order.
Precise facts of the case are such that the assessee is a charitable trust incorporated and registered on 19.02.2013 under MP Public Trust Act, 1951. It is run and operated by women generally in the age group of 50 to
70 years. The office bearers are also elderly-aged women. The object of
assessee is to provide help and financial support primarily to the needy and
deserving students, old aged persons, etc. Although the assessee
commenced in the year 2013, it did not obtain any registration u/s
12A/12AB or approval u/s 80G till 31.03.2021. However, with the
introduction of new provisions for registration u/s 12A/12AB and approval
u/s 80G in Income-tax Act, 1961 w.e.f. 01.04.2021 by Govt. through
Taxation and Other Laws (Relaxation and Amendment of Certain Provisions)
Act, 2020 w.e.f. 01.04.2021 [“TOLA”], the assessee felt necessity of
obtaining registration u/s 12A/12AB and approval u/s 80G. Accordingly,
for the first time vide application dated 18.10.2021 in Form No. 10A, the
assessee applied to Income-tax Department for grant of registration u/s
12A/12AB. In this application, the assessee inadvertently selected a wrong
section/code and applied u/s 12A(1)(ac)(i) instead of correct section
12A(1)(ac)(vi) and the Central Processing Unit of Income-tax Department [“Ld.
CPC”] granted registration as applied by assessee through automated
processing in Form No. 10AC dated 27.10.2021 for a period of 5 years from
AY 2022-23 to 2026-27. Similarly, vide a separate application dated
08.11.2021 in Form No. 10A, the assessee applied for the first time for grant
of provisional approval u/s 80G(5)(iv) which also the Ld. CPC granted
through automated processing in Form No. 10AC dated 15.11.2021 for the
period from 15.11.2021 to AY 2024-25. The assessee and department both were comfortable with the registration/approval so obtained/granted and
neither side came across any deficiency or infirmity therein. Subsequently,
the assessee filed application dated 28.09.2022 for renewal/final approval
u/s 80G(5)(iii) but the same was rejected by Ld. CIT(Exemption), Bhopal [“Ld.
CIT(E)”] by ex-parte order dated 27.01.2023 for non-prosecution. The
assessee could not take note of this ex-parte order in time. Thus, the
registration u/s 12A/12AB and approval u/s 80G granted by Ld. CPC vide
aforesaid orders dated 27.10.2021 and 15.11.2021 respectively remained
effective and in the knowledge of assessee for a period of about 3 years. Yet
subsequently, the assessee filed two (2) separate applications, one dated
13.11.2024 seeking renewal/final registration u/s 12A/12AB and other
dated 14.11.2024 seeking renewal/final approval u/s 80G. The Ld. CIT(E)
has rejected these two applications of assessee also vide two separate
orders dated 27.06.2025. Aggrieved, the assessee has come in captioned
three (3) appeals. The first appeal being ITA No. 893/Ind/2025 is
directed against order dated 27.06.2025 passed by Ld. CIT(E) in the matter
of registration u/s 12A/12AB. The second and third appeals being ITA
No. 894/Ind/2025 and ITA No. 895/Ind/2025 are directed respectively
against orders dated 27.01.2023 and 27.06.2025 passed by Ld. CIT(E) in
the matter of approval u/s 80G.
All three (3) appeals have been filed on same day of 13.10.2025, hence
there is a small delay of 43 days in first appeal and third appeal. Further,
there is a delay of 927 days in second appeal. The assessee has filed applications/affidavits for condonation of delays in all three matters. The
affidavit filed in second appeal is being scanned and re-produced for an
immediate reference:
Looking to the underlying facts as noted in preceding para and the
averments made in affidavit, the Ld. DR for revenue does not have any
objection if the bench condones delay and accordingly left it to the wisdom
of bench. We have considered the explanation advanced by assessee and in
absence of any contrary fact or material on record, the assessee is found to
have a “sufficient cause” for delay in filing present appeal. We find that
section 253(5) of the Act empowers the ITAT to admit an appeal after expiry
of prescribed time, if there is a “sufficient cause” for not presenting appeal
within prescribed time. It is also a settled position by Hon’ble Supreme
Court in Collector, Land Acquisition Vs Mst. Katiji and others 1987 AIR
1353, 1987 2 SCC 387 that whenever “substantial justice” and “technical
considerations” are opposed to each other, the cause of substantial justice
must be preferred by adopting a justice-oriented approach. Thus, taking into
account the facts of case, the provision of section 253(5) and the decision of
Hon’ble Supreme Court, we take a judicious view, condone delay, admit
these appeals and proceed with hearing.
On merit, the Ld. AR for assessee filed following Written-Synopsis
giving chronology of the events of assessee’s case in detail and specifying his
contentions. The Written-Synopsis filed by Ld. AR is scanned and re-
produced below for an immediate reference:
Ld. AR narrated that the underlying reason for the rejection of
assessee’s applications is such that the assessee selected wrong
section/code 12A(1)(ac)(i) instead of correct section 12A(1)(ac)(vi) in first
application dated 18.10.2021. He submitted that the whole problem has
occurred because the Govt. introduced a new system of granting different
types of registrations/approvals u/s 12A/12AB and 80G in different
scenerios through TOLA w.e.f. 01.04.2021 and there occurred a state of
confusion/mis-understanding/lack of understanding across India in the
minds of taxpayers. He submitted that the case of assessee is also same,
otherwise there was no reason of selecting wrong section/code. He
submitted that by selection of wrong section/code, the assessee does not
derive any benefit. He submitted that it was a pure technical mistake on the
part of assessee which needs a judicious consideration. He relied upon a
decision of ITAT, Pune in Subhadra Foundation Vs. The Commissioner of
Income-tax Exemption, Pune, ITA No. 1744 & 1745/PUN/2025, dated
09.09.2025 on similar/identical facts, wherein the ITAT has given a judicious consideration and granted relief to assessee. He filed a copy of
ITAT’s order, referred following paras of same and requested to grant similar
relief to assessee:
“4. We have heard both the parties and perused the records. In this case, Assessee had filed application for registration u/s. 12A(1)(ac)(iii) of the Act, in Form No.10AB on 23.12.2024 The ld. CIT(E) rejected Assessee’s application vide order dated 21.05.2025. On perusal of the ld. CIT(E)’s order, it is noted that Assessee had filed required details during the proceedings. In paragraph 6, ld. CIT(E) has stated that copy of order of provisional approval under section 12AB of the Act, was not submitted by assessee. In paragraph 6.1, ld. CIT(E) has stated as under: “6.1 Further, the assessee has furnished the copy of regular registration under section 12AB of the Act read with clause (i) of section 12A(1)(ac) of the Act. However, in its submission the assessee itself mentioned that the trust was not registered under section 12A/12AA of the Act prior to 01/04/2021. Therefore, it seems that the assessee has obtained the said registration by mis-representation of facts and the said registration is not a valid registration. Therefore, the prerequisite for of section 12A(1)(ac) of the Act is not fulfilled application under clause in this case. 7. In view of the above, the application filed by the assessee is hereby rejected.” 4.1 Thus, ld. CIT(E) has stated that Assessee has furnished copy of regular registration u/s.12AB of the Act. Ld. CIT(E) further alleged that Assessee had obtained said registration by mis-representation of facts. 5. We have perused the copy of the order of registration issued by Principal Commissioner of Income Tax – Mr. Sibichen K Mathew,dated 27.10.2021 which is in the paper book at page no.32 to 34. The said order is in Form No.10AC. The order is valid upto A.Y.2026-27. It has been submitted by ld.AR that the order dated 27.10.2021 in Form No.10AC is a provisional registration. Ld.AR further submitted that Assessee had by mistake applied u/s.12A(1)(ac)(i) at the time of applying for provisional registration. Ld.AR further submitted that Trust was formed on 01.09.2018. The copy of the registration issued by the Competent Authority is at page no.35 of the paper book. The Trust had never applied for registration earlier. 6. On perusal of the paper book, it is observed that Assessee is running Galaxy Kids Pre-Primary School. Assessee has also applied to Maharashtra State Government for starting a school from 1st Standard to 12th Standard. Accordingly, Maharashtra Government vide order dated 15.10.2024 issued letter of intent containing conditions to be fulfilled for starting the school.
The ld. CIT(E) has alleged mis-representation of facts, however, ld. CIT(E) failed to substantiate it. Ld. CIT(E) failed to consider the elaborate submission filed by Assessee to establish genuineness of charitable activities. It is an admitted fact by Assessee that while filing the Form, the incorrect sub-clause was selected. However, this cannot be a grave mistake to make the Assessee ineligible for registration u/s.12A of the Act. ITAT Pune Bench in the case of National Association for the Blind Vs. CIT(Exemption)- Pune in ITA No.2389/PUN/2024 has held as under: “6. We have heard Ld. Counsels from both the sides and perused the material available on record and also copy of case laws relied on by the assessee. We find that admittedly, the assessee trust was required to file application under clause (iii) of section 12A(1)(ac) of the IT Act but due to inadvertent error the application was filed under clause (vi) of section 12A(1)(ac) of the IT Act and for this reason alone Ld. CIT, Exemption, Pune rejected its application for registration. We find that under identical situations, a Co-ordinate Bench of this Tribunal in the case of Raj Krishan Jain Charitable Trust (supra) allowed the appeal of the assessee by observing as under:- “9. As contended the appellant has committed a technical mistake in making the application under Section 12A(1)(ac)(ii) instead of clause (iii) of clause (ac) of sub-section (1) of section 12A of the Act. As pointed out the appellant has filed revised form 10AB for seeking registration under the correct provision i.e. Section 12A(1)(ac)(iii) which can also be considered. 10. In consonance with the decision rendered by the co-ordinate Bench, the typographical error deserves to be corrected. Accordingly, the appeal deserves to be allowed and impugned order dated 15.03.2024 of Ld. CIT (E) is liable to be set aside. Hence, the appeal is allowed and we set aside the order of Ld. CIT(E) dated 15-03-2024 and remand the matter back to the file of the CIT(E) for fresh adjudication by considering amended application of the appellant under Section 12A(1)(ac)(iii) of the Act, or he can call for amended application from the appellant. 11. In the result, the appeal filed by the assessee is allowed for statistical purpose.” 7. Respectfully following the above decision passed by the Coordinate Bench of this Tribunal (supra), & considering the totality of facts of the case & in the interest of justice, we deem it proper to set-aside the order passed by Ld. CIT, Exemption, Pune and remand the matter back to him with a direction to treat the application already filed by the assessee as under clause (iii) of section 12A(1)(ac) of the IT Act instead of under clause (vi) of section 12A(1)(ac) of the IT Act and decide the same as per fact and law after providing reasonable opportunity of hearing to the assessee. The assessee is also hereby directed to respond to the notices issued by Ld. CIT, Exemption, Pune in this regard and produce supporting documents/evidences in support of application for registration without taking any adjournment under any pretext, otherwise, Ld. CIT, Exemption, Pune shall be at liberty to pass appropriate order as per law. Thus, the grounds of appeal filed by the assessee are partly allowed.” 8. The facts of the present case and National Association for the Blind are identical, therefore, respectfully following the Co-ordinate Bench’s Decision(supra), we set-aside the order of ld. CIT(E) for denovo adjudication. Ld. CIT(E) shall provide opportunity of hearing. The Assessee shall file necessary documents before the ld. CIT(E). Accordingly, grounds of appeal raised by the assessee are allowed for statistical purpose. 9. In the result, appeal of the assessee ITA No.1745/PUN/2025 is allowed for statistical purpose” 6. Ld. DR for revenue submitted that the mistake of selecting wrong
section/code is attributable to assessee and the Ld. CIT(E) has passed
appropriate orders. He submitted that there is no infirmity, perversity or
error in the orders passed by Ld. CIT(E). Therefore, the impugned orders
must be upheld.
We have carefully considered the rival submissions of both sides. We
have also considered the facts of these matters in the light of decision cited
before us. We find that the Govt. introduced a new system of granting
different types of registrations/approvals in section 12A/12AB and 80G
through TOLA w.e.f. 01.04.2021. These different types of
registrations/approvals can be broadly referred as ‘provisional’, ‘final’ and
‘renewal’. The provisions introduced by Govt. have multiple clauses/sub-
clauses and at times taxpayers face difficulties in understanding. Even the
seasoned professionals, who appear for arguing cases before us, also find
difficulties in comprehending the provisions and making smooth
submissions. There are cases all over India being dealt by benches of ITAT concerning the issues of wrong selection of section/code. We find that in the
undermentioned cases, the Benches of ITAT (including Indore Bench) have
examined such situations and have provided appropriate relief to the
assessees by adopting a pragmatic approach:
(i) ITAT, Mumbai in Rambha Charitable Trust, Mumbai Vs.
Commissioner of Income-tax, ITA No. 5111/Mum/2024, order dated
29.11.2024
(ii) ITAT, Kolkata in North Eastern Social Research Centre Vs.
CIT(Exemption), Kolkata, ITA No. 741/Kol/2024, order dated
09.07.2024
(iii) ITAT, Indore in Sir Seth Sarupchand Hukum Chand Charitable Trust
Vs. CIT(Exemption), ITA No. 797/Ind/2024
(iv) ITAT, Indore in Ratlam Ahinsa Shiksha Samiti Vs. CIT(Exemption),
Bhopal, ITA No. 719/Ind/2024
(v) ITAT, Indore in Balaji Gau Sarakshan Sansthan Vs. CIT(Exemption),
Bhopal, ITA No. 887 & 890/Ind/2025
Respectfully following the view taken by ITAT, Pune in Subhadra
Foundation (supra) cited by Ld. AR and further decisions of various
benches as noted above in preceding para, we are inclined to set aside the
impugned orders of Ld. CIT(E) for a de novo adjudication after taking into
account correct/applicable clause of section 12A/12AB and 80G. The Ld.
CIT(E) shall provide necessary opportunity of hearing to assessee and the assessee shall file necessary documents. We expect the Ld. CIT(E) to hear all
three cases of assessee together and dispose of judiciously without being
influenced by earlier orders in any manner.
Resultantly, these appeals are allowed for statistical purposes.
Order pronounced in open court on 30/04/2026
Sd/- Sd/-
(PARESH M JOSHI) (B.M. BIYANI) JUDICIAL MEMBER ACCOUNTANT MEMBER
Indore
िदनांक/Dated : 30/04/2026
Patel/Sr. PS Copies to: (1) The appellant (2) The respondent (3) CIT (4) CIT(A) (5) Departmental Representative (6) Guard File By order UE COPYSr. Private Secretary Income Tax Appellate Tribunal Indore Bench, Indore
Page 18 of 18
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