JAMNA LAL KANI RAM BAJAJ TRUST,SIKAR,SIKAR vs. CIT EXEMPTION, JAIPUR, JAIPUR

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ITA 748/JPR/2026Status: DisposedITAT Jaipur30 June 2026AY 2026-275 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal held that a technical error of filing under a wrong section, when the application was filed within the stipulated time and the genuineness of activities is not disputed, should not be a ground for rejection. The CIT(E) should have allowed rectification.

What were the facts?

The assessee trust, engaged in charitable activities, had its application for renewal of registration under section 12A(1)(ac)(ii) rejected by the CIT(E) because it was inadvertently filed under section 12A(1)(ac)(iii). The original registration was valid for AY 2022-23 to AY 2026-27.

What were the issues?

Whether rejection of a registration renewal application due to a technical defect of filing under a wrong section is justified without providing an opportunity for rectification.

Which sections of the Income-tax Act were involved?

Section 12A(1)(ac)(ii),Section 12A(1)(ac)(iii)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, JAIPUR BENCHES, JAIPUR.

Before: SMT. ANNAPURNA GUPTA & SH. UDAYAN DAS GUPTA

Hearing: 29.06.2026Pronounced: 30.06.2026

IN THE INCOME TAX APPELLATE TRIBUNAL JAIPUR BENCHES, JAIPUR. BEFORE SMT. ANNAPURNA GUPTA, ACCOUNTANT MEMBER AND SH. UDAYAN DAS GUPTA, JUDICIAL MEMBER

I.T.A. No. 748/JPR/2026

Jamna Lal Kani Ram Bajaj Vs. CIT Exemption Trust Jaipur Bajaj Bhawan, Bajaj Road Sikar (Respondent) Baraj Road [PAN:-AAATJ0549F] (Appellant)

Appellant by Sh. Sandeep Jhanwar, CA Respondent by Sh. Ajay Malik, CIT (through V.C) Date of Hearing 29.06.2026 Date of Pronouncement 30.06.2026 ORDER Per: Udayan Dasgupta, JM:

This appeal is filed by the assessee against the order of the Ld CIT (E), Jaipur, dated 23/01/2026, rejecting the application for registration dated 29/09/2025, filed by the assessee in Form 10AB u/s 12A(1)(ac)(iii) of the Income Tax Act 1961( henceforth the Act ).

I.T.A. No.748/JPR/2026 Assessment Year: 2026-27 2

2.

The grounds of appeal taken by the assessee in the memorandum of appeal in form 36 are as follows:

“1. Under the facts and circumstances of the case, ld. CIT (Exemption), Jaipur has erred in rejecting the application in Form 10AB filed for registration u/s 12A(ac)(iii) of the Income Tax Act, 1961 by considering it infructuous for the reason being the assessee had to file for renewal of registration u/s 12A(1)(ac)(ii) of the Income Tax Act, 1961.

2.

The appellant craves leave to add, amend, alter or delete the ground of appeal on or before date of hearing.

3.

Brief facts on record are that the assessee is a trust engaged in charitable activities and has been granted registration u/s 12A(1)(ac)(i)of the Act (in Form 10AC )vide order dated 01/10/2021, for the period AY 2022-23 to AY 2026-27. The assessee was supposed to have filed application for renewalof registration under section 12A(1)(ac)(ii) of the Act , ( at least six months prior to the expiry of the said period )and has filed the said application on 29th September, 2025, but inadvertently the same has been filed under a wrong section clause 12A(1)(ac)(iii)instead of 12A(1)(ac)(ii) , and as such the said application for registration has been rejected due to this technical default. 4. In course of hearing it is submitted by the Ld AR of the assessee that queries were raised on various issues by the Ld CIT ( E ) in course of hearing for

I.T.A. No.748/JPR/2026 Assessment Year: 2026-27 3

registration in response to which submissions were filed in the portal which were examined and verified and no adverse inference has been drawn. 5. He further submitted that the rejection of the application for renewal of registration has been done without issue of any show cause notice and without allowing any opportunity to the assessee to explain its case or to rectify the application which inadvertently might have been filed under a wrong section code, and he prayed that since it is just a technical default on the part of the assessee trust, the Ld CIT ( E ) may please be directed to consider the said application afresh , considering the fact that there is no dispute regarding the genuineness of the activities that are carried out . 6. The Ld DR relied on the order of the Ld CIT ( E ). 7. We have heard the rival submissions and considered the materials on record and we find that the assessee society was granted registration on first October, 2021 for the period assessment year 2022-23 to 2026-27 and the assessee has applied for renewal of registration on 29thSeptember 2025 within stipulated time frame of six months , and the said registration application has been rejected without any opportunity of clarification on the ground that the application has been made under a wrong section code.

I.T.A. No.748/JPR/2026 Assessment Year: 2026-27 4

8.

We also find that the genuineness of the charitable activities carried out by the said society has not been disputed and the financial of the said society has also been incurred for the purpose of rendering its objects. 9. We also observe that the assessee was actually supposed to have filed the application u/s 12A(1)(ac)(ii) of the Act instead it has wrongly filed u/s 12A(1)(ac)(iii)of the Act which has resulted in this rejection even though, the genuineness of the activities has never been disputed by the ld. CIT(E).

10.

We find that the coordinate bench of this tribunal in the case of IIT Ropar Technology Business Incubator Foundation in ITA 612/Asr/2024 dated 20th August 2025 has held that an application filed in time mentioning a wrong section, cannot be a ground for rejecting the application.

11.

We also find that similar views has been taken by various other benches of the tribunal in the case of Society For Technology Business Incubator vs. CIT(E) in ITA 1134/Chd/2024 where it has been held that registration cannot be rejected for any curable defect like making an application under a wrong section or in a wrong Form and in such a situation it is duty of ld. CIT(E) to inform the assessee about the said mistake and ask the assessee to rectify it rather than to reject the application for merely such a technical mistake.

I.T.A. No.748/JPR/2026 Assessment Year: 2026-27 5

12.

As such, we hold that in the instant case, since there is no adverse finding by the ld. CIT(E) regarding the genuineness of the activities or on merits of the case, or on any specified violation of section 12A(4) of the Act, the application filed by the assessee may be treated as filed under the correct provision, and to consider the application for registration on merits. As such, we remand the matter back to the file of the ld. CIT(E) for considering the application for registration afresh as per provisions of law. 13. In the result, the appeal of assessee is allowed for statistical purposes. Order pronounced on 30.06.2026 in open court .

Sd/- Sd/-

(ANNAPURNA GUPTA) (UDAYAN DAS GUPTA) Accountant Member Judicial Member Dated : 30.06.2026 * Ganesh Kumar, Sr. PS Copy of the order forwarded to: (1)The Appellant (2) The Respondent (3) The CIT (4) The CIT (Appeals) (5) The DR, I.T.A.T.

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