UDAYANATH CHARITABLE TRUST,CUTTACK vs. ITO, EXEMPTION WARD , BHUBANESWAR

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ITA 582/CTK/2026Status: DisposedITAT Cuttack07 October 2026AY 2022-232 pages
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What did the Tribunal hold?

The Tribunal held that the application for registration was rejected by the CIT(Exemption) due to the mention of a wrong section code. In the interest of justice, the Tribunal restored the issues to the file of the CIT(Exemption) for fresh adjudication. The assessee was granted liberty to make the necessary correction by mentioning the correct code in Form No. 10A and to provide the details before the CIT(Exemption). The ratio decidendi is that procedural defects, such as incorrect section codes in application forms, should not lead to outright rejection without providing an opportunity for correction, especially when the error is bona fide and does not prejudice the revenue. The operative direction is to remand the matter to the CIT(Exemption) for fresh consideration.

What were the facts?

The assessee, Udayanath Charitable Trust, filed an appeal against the order of the Commissioner of Income Tax (Exemption), Hyderabad, dated 25.2.2024, for the assessment year 2022-23. The appeal challenges the rejection of the assessee's application for registration. The rejection was based on the ground that an incorrect section code, specifically '02 - sub-clause (i) of clause (ac) of sub-section (1) of section 12A', was selected in Form No. 10A. The assessee contended that this was an error and requested an opportunity to correct the section code. The revenue did not object to this request.

What were the issues?

1. Whether the application for registration under section 12A of the Income Tax Act, 1961, should be rejected solely on the ground of selecting an incorrect section code in Form No. 10A, thereby denying the assessee an opportunity to rectify the error? Assessee's Contention: The assessee argued that the rejection of the application was due to a mistake in selecting the wrong section code in Form No. 10A and requested an opportunity to correct the proper code. The assessee sought to provide the correct details before the CIT(Exemption). Revenue's Contention: The revenue, through the ld CIT DR, did not object to the assessee's request for an opportunity to correct the application.

Which sections of the Income-tax Act were involved?

Section 12A

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, CUTTACK BENCH, CUTTACK

Before: S/SHRI GEORGE MATHAN & G. GURUSAMY

For Appellant: Shri Anirudha Abhayankar, AR
For Respondent: Shri Ashis Chandra Mohanty, ld CIT DR
Hearing: 07/10/2026Pronounced: 07/10/2026

1 ITA No.582/CTC/2026 Assessment Year: 2022-23

IN THE INCOME TAX APPELLATE TRIBUNAL, CUTTACK BENCH, CUTTACK BEFORE S/SHRI GEORGE MATHAN, JUDICIAL MEMBER AND G. GURUSAMY, ACCOUNTANT MEMBER ITA No.582/CTC/2026 Assessment Year: 2022-23 Udayanath Charitable Trust, Vs. ITO, Exemption, Ward, 731, Sahid Nagar, Bhubaneswar. Bhubaneswar. PAN/GIR No.AAATU 8155 E (Appellant) .. ( Respondent) Assessee by : Shri Anirudha Abhayankar, AR Revenue by : Shri Ashis Chandra Mohanty, ld CIT DR Date of Hearing : 07/10/2026 Date of Pronouncement : 07/10/2026

O R D E R Per Bench This is an appeal filed by the assessee against the order of the ld CIT(Exemption), Hyderabad dated 25.2.2024 for the assessment year 2022-23. 2. Shri Anirudha Abhayankar, AR ld AR appeared for the assessee and Shri Ashis Chandra Mohanty, ld CIT DR appeared for the revenue. 3. Ld AR submitted that the ld CIT(Exemption) has rejected the application on the ground that in Form No.10A, wrong section code was selected i.e. “02 -sub-clause (i) of clause (ac) of sub-section (1) of section 12A” , which is not an appropriate section code for considering the registration u/s.12A of the Act. Ld AR submitted that an opportunity be given to correct the proper code in the application Form No.10A. Ld CIT DR did not object to the request of ld AR of the assessee.

2 ITA No.582/CTC/2026 Assessment Year: 2022-23

4.

We have considered the rival submissions. A perusal of the order of the ld CIT (Exemption) shows that due to mentioning of wrong section, the application was rejected. Therefore, in the interest of justice, the issues in this appeal are restored to the file of the ld CIT (Exemption) for fresh adjudication. Liberty is granted to the assessee to make the necessary correction by mentioning correct code in the application Form No.10 and provide the details before the ld CIT(Exemption). 5. In the result, appeal of the assessee stands partly allowed for statistical purposes. Order dictated and pronounced in the open court on 07/10/2026.

Sd/- Sd/- (G. GURUSAMY) (GEORGE MATHAN) ACCOUNTANT MEMBER JUDICIAL MEMBER Cuttack ; Dated 07/10/2026 RS Copy of the Order forwarded to : 1. The Appellant: Udayanath Charitable Trust, 731, Sahid Nagar, Bhubaneswar

2.

The Respondent: ITO, Exemption, Ward, Bhubaneswar 3. The CIT(A)- 4. Pr.CIT, 5. DR, ITAT, 6. Guard file. //True Copy//

By order Asst. Registrar. ITAT, Cuttack

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