ARIHANT EDUCATIONAL SOCIETY,BHILWARA vs. ITO EXEMPTION WARD 1, JAIPUR, JAIPUR

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ITA 1374/JPR/2026Status: DisposedITAT Jaipur22 October 2026AY 2026-273 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 the Ld. CIT(E) should not have summarily dismissed the application for a clerical error. It reasoned that when the facts recorded in the application indicate that it was filed under the wrong clause, a quasi-judicial authority has the power to issue approval under the correct clause. The Tribunal noted that the assessee had already been issued a certificate of registration under section 12AB of the Act. Therefore, consequential approval under section 80G could not be withheld merely due to a clerical error on the part of the appellant. The CIT(E) was directed to issue approval under section 80G(5)(iv) of the Act under the correct clause upon production of requisite documents. The Tribunal found that the CIT(E) was not empowered to initiate cancellation proceedings under section 80G(5)(vi) as alleged by the assessee, but the core issue was the erroneous filing of the application for approval.

What were the facts?

The assessee, Arihant Educational Society, filed an appeal against an order dated 17.03.2026 passed by the Commissioner of Income Tax (Exemption), Jaipur (CIT(E)). The CIT(E) had rejected an application filed by the appellant in Form No. 10AB seeking approval under section 80G(5)(iv) of the Income Tax Act, 1961. The rejection was based on the ground that the application was filed under the wrong clause, and the appellant was required to seek approval under the correct clause within the prescribed period. The assessee contended that the CIT(E) initiated proceedings for cancellation of registration under section 80G(5)(vi), for which he was not empowered. The assessment year(s) are not explicitly stated.

What were the issues?

1. Whether the Ld. CIT(E) was empowered to initiate proceedings for cancellation of registration under section 80G(5)(vi) of the Income Tax Act, 1961? 2. Whether the application for approval under section 80G(5)(iv) of the Act could be summarily dismissed due to a clerical error in selecting the wrong clause, especially when the assessee had already obtained registration under section 12AB? Assessee's contentions: - The Ld. CIT(E) lacked the power to initiate proceedings for cancellation of registration under section 80G(5)(vi). - The application was filed under the wrong clause due to a clerical error, and the CIT(E) should not have summarily dismissed it. Revenue's contentions: - The judgment records no specific contentions for the revenue regarding the issues raised.

Which sections of the Income-tax Act were involved?

Section 80G(5)(iv),Section 80G(5)(vi),Section 12AB

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, JAIPUR “A” BENCH, JAIPUR

Before: SHRI KULDIP SINGH & SHRI PRAKASH, ACCOUNTANCT MEMBER

IN THE INCOME TAX APPELLATE TRIBUNAL JAIPUR “A” BENCH, JAIPUR (PHYSICAL HEARING) BEFORE SHRI KULDIP SINGH, JUDICIAL MEMBER & SHRI PRAKASH, ACCOUNTANCT MEMBER ITA No: 1374/JPR/2026

Arihant Educational society The ITO Shanti Bhawan, Bhopal Exemption Vs Ganj, Bhilwara. Ward-1, PAN: AADAA6223D Jaipur. (Appellant) (Respondent)

Assessee Represented: Sh. Sunil Porwal, C.A. Revenue Represented: Mrs. Aarti Rawat, JCIT Date of hearing : 07-10-2026 Date of pronouncement : 22-10-2026 ORDER PER : KULDIP SINGH, JUDICIAL MEMBER:-

The Appellant, Arihant Educational Society by filing the present appeal, sought to set aside the impugned order dated 17.03.2026 passed by the Commissioner of income Tax (Exemption), Jaipur [hereinafter referred to as the ‘CIT(E)’] on the ground that:- “1. The Ld. CIT(E) has further initiation for cancellation of registration u/sec. 80G(5)(vi) of the Income Tax Act, 1961 for which he is not empowered. 2. Any other mater with prior permission of the chair.”

I.T.A No. 1374/JPR/2026 Page No 2 Arihant Educational society

2.

Briefly stated, facts necessary for consideration and adjudication of the issued at hand are : Application moved by the appellant in Form No. 10AB, seeking approval u/s 80G(5)(iv) of the Income Tax Act, 1961 (hereinafter referred to as the “Act”) was rejected on the ground that the appellant has filed an application under wrong clause as the appellant was required to get approval u/s 80G(5)(iv) of the Act to regularize u/s 80G of the Act within prescribed period, thus did not comply with provisions of law. 3. We are of the considered view that when on the basis of fact recorded in the application, it has come on record that the application has been filed under wrong clause and was required to be filed under the correct clause. When the facts are self speaking quasi judicial authority has the wide power to issue approval under correct clause and not to summarily dismiss the application for clerical error. 4. In the instant case when the certificate of registration u/s 12AB of the Act has already been issued vide order dated 13.03.2026 available on record, consequential approval u/s 80G of the Act cannot be withheld merely due to clerical error on the part of the appellant. So the Ld. CIT(E) is directed to issue approval u/s

I.T.A No. 1374/JPR/2026 Page No 3 Arihant Educational society

80G(5)(iv) of the Act under correct clause on production of requisite documents. 5. Resultantly, the appeal filed by the appellant is allowed. Order pronounced in the open court on 22-10-2026. Sd/- Sd/- (PRAKASH) (KULDIP SINGH) ACCOUNTANT MEMBER JUDICIAL MEMBER Jaipur Dated:- 22/10/2026. *Santosh. Copy of the order forwarded to: 1. The Appellant- 2. The Respondent- 3. CIT 4. CIT(A) 5. DR, ITAT, Jaipur. 6. Guard File By order, Asst. Registrar

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