SHYAM BABA SEVA TRUST,KOLKATA vs. CIT (EXEMPTION), KOLKATA

That the appellant craves to add, delete or modify any grounds of appeal in the course of hearing.”

Brief facts of the case are that the assessee had filed an application for registration u/s 80G(5)(ii) of the Act in Form No. 10AB which was found to be prima facie non-maintainable and accordingly vide letter dated 03.01.2024, certain clarifications were sought from the assessee. The Ld. CIT (Exemption) has rejected the application by mentioning as under: “On 23.01.2024 the assessee submitted its reply. From the reply of the assessee it is evident that the assessee had selected the wrong section code while applying Form 10AB. Assessee can file afresh Form 10AB selecting the correct section code. Accordingly the application filed by the assessee is treated as non-maintainable and for statistical purpose the application filed by the assessee is treated as 'rejected'. However, no adverse inference is drawn against the assessee.”

The assessee contends that the Ld. CIT (Exemption) erred in failing to grant registration only on a mechanical ground that registration application was filed under clause (ii) of first proviso to section 80G(5) of the Act instead of under clause (iii), even though the assessee had clarified in subsequent clarifications. We observe from the order of the Ld. CIT (Exemption) that the application was rejected as the assessee had selected the wrong clause/section code and the same was treated as non-maintainable. However, no adverse inference was drawn against the assessee. The assessee has stated that this inadvertent error was already clarified by the assessee in subsequent clarifications. That being so, the Ld. CIT (Exemption) ought to have granted an opportunity I.T.A. No.: 1443/KOL/2024 Assessment Year: 2021-2025 Shyam Baba Seva Trust. for correction of the wrong section code which was an inadvertent and technical error and only on this ground the grant of approval ought not to have been rejected if the assessee were otherwise eligible. Accordingly, the order of the Ld. CIT (Exemption) is set aside with the direction that the application filed may be treated as filed under the correct section code after allowing an opportunity to the assessee to correct the wrong section code by mentioning of correct code in its place in the application, either by way of correction in the original application or by way of a separate application which shall be deemed to be filed as on the date of filing the original application. Thereafter, the Ld. CIT (Exemption) shall grant an opportunity of being heard to the assessee and the assessee shall file the required details without seeking unnecessary adjournments and the Ld. CIT (Exemption) shall pass an order in accordance with law, as no adverse inference had been drawn against the assessee but the application was rejected only on technical ground of wrong mentioning of section code. The Ld. DR did not object to setting aside the order of the Ld. CIT (Exemption) and granting another opportunity to the assessee.