HANS VAHINI EDUCATIONAL & SOCIAL WELFARE SOCIETY ,DELHI vs. CIT E, DELHI

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ITA 5745/DEL/2026Status: DisposedITAT Delhi29 June 20263 pages

In favour of the assessee: the assessee's appeal was allowed. From the AI summary of this appeal.

AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that a substantive right of the assessee cannot be defeated merely for a technical glitch. The rejection of the application by the CIT(Exemptions) was based on a technical defect arising from the inadvertent selection of an incorrect clause while filing Form 10A. The Tribunal found this to be a bona-fide and procedural mistake that ought not to have led to the rejection of a substantive claim for registration, particularly when the assessee was engaged in genuine charitable activities. The Tribunal relied on the principle that technical defects should not impede substantive claims and cited decisions from various ITAT benches, including Indore, Mumbai, and Kolkata, which adopted a pragmatic approach in similar situations. The Tribunal set aside the order of the CIT(Exemptions) and remanded the matter back for de-novo adjudication, directing that the assessee be provided an opportunity of being heard and to file necessary documents. The Tribunal expressly left undecided any issues related to the genuineness of the charitable activities themselves, as the matter was remanded for re-adjudication.

What were the facts?

The assessee, M/s Hans Vahini Educational & Social Welfare Society, filed an appeal before the Income Tax Appellate Tribunal (ITAT), Delhi Bench. The appeal was against the order of the Commissioner of Income Tax (Exemptions), Delhi, dated March 24, 2026, which rejected the assessee's application for registration under Section 12A of the Income-tax Act, 1961, filed in Form 10AB. The assessment year is not specified. The assessee did not appear for the hearing, but the Revenue was represented by Shri Raghunath, CIT-DR. The ITAT noted that the rejection was based solely on a technical defect arising from the inadvertent selection of an incorrect clause while filing Form 10A, which should not have defeated a substantive claim for registration, especially if the charitable activities were genuine.

What were the issues?

1. Whether the rejection of the assessee's application for registration under Section 12A of the Income-tax Act, 1961, solely on account of a technical defect in selecting an incorrect clause in Form 10A, is justified, despite the assessee otherwise carrying on genuine charitable activities? (Question of law and fact, turning on Section 12A(1)(ac)(vi) and Section 12AB(1)(b)(ii)(B)). Assessee's contentions: Not recorded as no one appeared on behalf of the assessee. Revenue's contentions: The learned CIT-DR could not controvert the fact situation presented by the Tribunal regarding the technical nature of the defect.

Which sections of the Income-tax Act were involved?

Section 12A,Section 12AB(1)(b)(ii)(B),Section 12A(1)(ac)(vi)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH-E : NEW DELHI

Before: SHRI MAHAVIR SINGH & SHRI MANISH AGARWAL

For Respondent: Shri Raghunath, CIT-DR
Hearing: 23.06.2026Pronounced: 23.06.2026

Per Bench:

This appeal by the assessee is directed against the order of learned CIT(Exemptions), Delhi dated 24 March, 2026 whereby the application of the assessee in Form 10AB for registration under Section 12A of the Income-tax Act, 1961 (hereinafter referred to as ‘the Act’) was rejected.

2.

Nobody appeared on behalf of the assessee at the time of hearing. We have heard the arguments of learned CIT-DR and have gone through the order of learned CIT(Exemption) passed under Section 12AB(1)(b)(ii)(B) of the Act. It is observed that the rejection of assessee’s application has been made solely on account of technical defect arising out of the inadvertent selection of an incorrect clause while filing Form No.10A. Such a bona-fide and procedural mistake ought not to have defeated a substantive claim for registration, particularly when the assessee is otherwise carrying on genuine charitable and religious activities. If assessee had originally selected the correct clause viz., Section 12A(1)(ac)(vi) of the Act, CPC would have issued only a provisional registration in Form No.10AC and thereafter assessee is required to file Form No.10AB for regular registration. Reference in this regard can be made to the decision of ITAT, Indore Bench in the case of Shree Annapurna Kshetra Maheshwari Mahila Charitable Trust - 2026 (5) TMI 1765, order dated 30" April, 2026 and in particular, to paragraph Nos.7 & 8, which read as under:-

“7. 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. C/T(Exemption), Kolkata, ITA No. 741/Kol/2024, order dated 09.07.2024 (iii) ITAT, Indore in Sir Seth Sarupchand Hukum Chand Charitable Trust Vs. C/T(Exemption), ITA No. 797/Ind/2024 (iv) ITAT, Indore in ITA No. 719/Ind/2024 (v) ITAT, Indore in Balaji Gau 887 & 890/Ind/2025

8.

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 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.”

3.

When these facts were confronted to the learned CIT-DR, he could not controvert the above fact situation.

4.

We noted that the facts are clear and we are of the view that merely for technical glitch, substantive right of the assessee cannot be defeated. Hence, we set aside the order of learned CIT(Exemption) and remand the matter back to his file for de-novo adjudication after allowing an opportunity of being heard to the assessee. The assessee will file the required documents before the learned CIT(Exemption) for his examination. Accordingly, the appeal is allowed for statistical purposes.

5.

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

Decision pronounced in the open Court on conclusion of hearing on 23” June, 2026. (MANISH AGARWAL) (MAHAVIR SINGH) ACCOUNTANT MEMBER VICE PRESIDENT

Date : 29.06.2026 VK.

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