AKANKSHA CHARITABLE TRUST,MUMBAI vs. CIT (EXEMPTIONS), MUMBAI

आदेश / ORDER PER BEENA PILLAI, JUDICIAL MEMBER: Present appeal is filed by assessee arises out of the order passed by Ld. Commissioner of Income Tax (Exemptions), Mumbai [hereinafter referred to as “the Ld.CIT(E)”], dated 05/03/2026, on the following grounds of appeal:-

“1) On the facts and in the circumstances of the case and in law, the learned CIT (Exemptions) erred in rejecting the application for 1

ITA 3036/MUM/2026 AKANKSHA CHARITABLE TRUST registration of the Trust under section 12AB of the Income Tax Act, 1961 merely on the ground that the application in Form 10AB of the Income Tax Rules, was made under section 12A(1)(ac)(iii) instead of section 12A(1)(ac)(ii) of the Income Tax Act, 1961 2) On the facts and in the circumstances of the case, and in law, the learned CIT(Exemptions) failed to appreciate that the same was an inadvertent error on the part of the appellant and he ought to have provided an opportunity to the appellant to correct the said mistake rather than rejecting the application and thereby rendering the Trust as an unregistered entity. 3) On the facts and in the circumstances of the case, and in law, the learned CIT(Exemptions) erred in rejecting the application on a purely technical ground that the application was filed under wrong section/clause (which is just a typographical error) without examining the genuineness of activities and objects of the trust/institution, which is the primary requirement under the Act. 4) The appellant craves leave to add, amend, alter and/OR vary any of the grounds of appeal before OR at the time of hearing.” 2. The brief facts as emanating from the record are that the assessee-trust filed an application in Form No.10AB seeking registration u/s 12AB of the Act. The application, however, came to be filed under section 12A(1)(ac)(iii) instead of section 12A(1)(ac)(ii) of the Act. The Ld. CIT(E), noticing the said defect, rejected the application holding that the assessee had filed the application under an incorrect clause of the Act and, therefore, was not eligible for the relief sought.

Aggrieved by the aforesaid action of the Ld. CIT(E), the assessee is in appeal before us.

ITA 3036/MUM/2026 AKANKSHA CHARITABLE TRUST to the assessee to rectify the defect or file the application under the correct clause. It was further submitted that the Ld. CIT(E) rejected the application solely on technical grounds without examining the objects of the trust and the genuineness of its activities, which are the primary considerations for grant of registration u/s 12AB of the Act.

We have perused the submissions advanced by both sides in light of the records placed before this Tribunal.

5.1. In our considered opinion, procedural and technical lapses should not come in the way of adjudicating substantive rights, particularly where such lapses are capable of being rectified. The object of the proceedings for grant of registration u/s 12AB is to examine the objects of the trust/institution and the genuineness of its activities. Merely because the application was filed under an incorrect clause due to an apparent inadvertent error, the same, by itself, could not have been a reason to reject the application

ITA 3036/MUM/2026 AKANKSHA CHARITABLE TRUST without granting an opportunity to the assessee to rectify the defect.

5.2. The principles of natural justice require that where a defect is curable in nature, a reasonable opportunity ought to be afforded to the applicant before an adverse decision is taken. In the present case, no such effective opportunity appears to have been granted to the assessee for correcting the mistake and pursuing its application under the appropriate provision.

5.3. Considering the entirety of the facts and circumstances of the case, and in the interest of justice, we deem it fit and proper to set aside the impugned order and restore the matter to the file of the Ld. CIT(E) for fresh adjudication. The Ld. CIT(E) is directed to provide adequate opportunity to the assessee to rectify the defect, consider the application under the appropriate provision of law and thereafter decide the issue afresh in accordance with law after examining all relevant facts, including the objects of the trust and the genuineness of its activities.

Accordingly, the grounds raised by the assessee are allowed for statistical purposes.

In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced in the open court on 11/06/2026

Sd/- Sd/- JAGADISH BEENA PILLAI ACCOUNTANT MEMBER JUDICIAL MEMBER Mumbai Dated: 11/06/2026 SC. Sr. P.S.

ITA 3036/MUM/2026 AKANKSHA CHARITABLE TRUST

Copy to: AKANKSHA CHARITABLE TRUST, 401 GULAB ,237 P D MELLO ROAD 1 FORT, MUMBAI-400001, MAHARASHTRA CIT (EXEMPTIONS), 601,6TH FLOOR, CUMBALLA HILL MTNL TE BUILDING, PEDDER ROAD, 2 DR GOPALRAO DESHMUKH MARG, CUMBALLA HILL, MUMBAI-400026, MAHARASHTRA 3 THE PCIT / CIT, 4 THE D.R., ITAT, MUMBAI BENCH 5 GUARD FILE