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Facts
A Charitable Trust's application for regular registration under Section 12A was dismissed by the CIT(E) because the assessee inadvertently selected the wrong sub-section (12A(1)(ac)(vi) instead of 12A(1)(ac)(iii)) in Form 10AB. The assessee contended it was a technical error and appealed the dismissal, citing a CBDT circular.
Held
The Tribunal allowed the appeal for statistical purposes and remitted the case back to the CIT(E). It directed the CIT(E) to provide the assessee another opportunity to file a corrected application under Section 12A(1)(ac)(iii) and furnish all required details, ensuring a proper hearing.
Key Issues
Can an application for regular registration under Section 12A be dismissed solely due to the selection of an incorrect sub-section in Form 10AB, or should the applicant be given an opportunity to rectify such a technical error?
Sections Cited
12A, 12A(1)(ac)(vi), 12A(1)(ac)(iii), 12AB
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, B BENCH,
Before: DR. MANISH BORAD & SHRI VINAY BHAMORE
आदेश /ORDER
PER DR. MANISH BORAD, ACCOUNTANT MEMBER :- This appeal at the instance of assessee is directed against the order of Ld. CIT(E), Pune passed u/s 12A(1)(ac)(vi)-ITEM(B) of the Income-tax Act, 1961 dated 09.09.2025.
Assessee has raised following grounds of appeal:-
1. 1. 1. On the facts and in the circumstances of the case and in law, the Learned Hon'ble Commissioner of Income Tax (Exemption) Pune is wrong in rejecting the application Form 10AB u/s 12A(1)(ac)(vi) ITEM (B) being mentioning wrong sub section instead of correct sub section u/s 12A(1)(ac)(iii).
2. Hon'ble CIT (Exemption) is ought to have consider, it is technical mistake and grand registration u/s 12AB when otherwise Education Trust is genuine.
3. The Learned Hon'ble Commissioner of Income Tax (Exemption) Pune failed to appreciate the circular no 7/2024 of CBDT which permits to admit the application even if the wrong sub section is selected while filing application. Wrong selection of sub section does not stand the reason to reject the application and judgment of Pune Tribunal to consider to overcome technical mistake of the appellant trust.
4. The appellant craves leave to add, amend, alter, or withdraw any aforesaid grounds of appeal.
3. At the outset Ld. Counsel for the assessee submitted that in the application filed by the assessee for regular registration u/s 12A of the Act, inadvertently the assessee has selected wrong sub section/code as a result of which application on Form 10AB filed for regular registration u/s 12A of the Act has been dismissed. She prayed for affording one more opportunity for amending the application and to place relevant details for necessary adjudication of the issue of regular registration u/s 12A(1)(ac)(iii) of the Act.
Ld. Departmental Representative (DR) supported the order of Ld. CIT(E).
We have heard rival contentions and perused the record placed before us. We observe that the assessee is a Charitable Trust and provisional registration for A.Y. 2023-24 to A.Y. 2025-26 has been granted on 26.10.2022. The assessee is required to file separate application for regular registration u/s 12A. The assessee filed the application on 01.03.2025 on the prescribed Form 10AB u/s 12A(1)(ac)(vi) of the Act. However as stated by Ld. Counsel for the assessee the application was required to be furnished u/s 12A(1)(ac)(iii) of the act but due to inadvertent mistake while filing online return wrong sub section/code has been selected due to which the application for regular registration filed by the assessee has been dismissed by Ld. CIT(E).
Taking into consideration the prayer made by the Ld. Counsel for the assessee and also a consistent view taken by this Tribunal under similar set of facts and there being no strong objection from the revenue, we deem it appropriate to afford one more opportunity to the assessee and remit the issues back to the file of Ld. CIT(E) with the liberty to the assessee to file the rectified and correct application for regular registration u/s 12A(1)(ac)(iii) of the Act and also furnish necessary details called for by the Ld. CIT(E). Needless to mention that proper opportunity of hearing shall be granted to the assessee. Assessee is also directed to remain vigilant and not to take adjournment unless otherwise required for reasonable cause. Effective grounds of appeal raised by the assessee are allowed for statistical purposes.
In the result, appeal of the assessee is allowed for statistical purposes.
Order pronounced on this 12th day of December, 2025.