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Facts
The assessee filed an application in Form No.10AB for registration under Section 12A(ac)(iii). The application was rejected by the Ld.CIT(E) on technical grounds due to an inadvertent mistake in selecting the wrong section. The assessee contends this was a clerical error.
Held
The Tribunal found that the rejection was based solely on a technical ground. It was held that the assessee should have been given an opportunity to rectify the mistake. The Ld.CIT(E) is directed to provide an opportunity to rectify the application and consider it on merits.
Key Issues
Whether the rejection of an application for registration on a technical ground without providing an opportunity to rectify a clerical error is sustainable.
Sections Cited
12A, 80G
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Income Tax Appellate Tribunal, ‘A’ BENCH, CHENNAI
Before: SHRI MANU KUMAR GIRI
Aggrieved by rejection of application filed in Form No.10AB on 14.06.2024 for seeking registration under section 12A(ac)(iii) vide impugned order dated 17.12.2024 of the Ld.CIT (Exemption), Chennai, the assessee is in further appeal before us.
The ld.AR submitted that by clerical error, the assessee has wrongly selected 12A registration instead of 14-Clause (iii) of first proviso to sub-section (5) of section 80G coupled with the error, due to nature of the drop box. It has been stated that the application was rejected on the ground that the assessee is not entitled to file application under section 12A (ac)(iii) of the Act.
The ld. DR for the revenue relied upon the order of the ld.CIT(E).
Aggrieved by the order of Ld.CIT(E), the assessee is in further appeal before us.
On perusal of impugned order, we find that the application has been rejected merely on technical ground. By inadvertent mistake, the assessee preferred application in Form 10AB under wrong section 12A(ac)(iii). The assessee ought to have been granted an opportunity to rectify the same. Nevertheless, we direct Ld. CIT(E) to provide an opportunity to the assessee to rectify the application and consider the same, on merits. Accordingly, the assessee is directed to substantiate its claim before the Ld. CIT(E).
In the result, appeal stands allowed for statistical purposes.
Order pronounced in the open court on 1st April, 2025