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Facts
The assessee trust applied for registration under section 12A(1)(ac)(ii) of the Income Tax Act, 1961. However, due to a clerical error in selecting the dropdown option on the e-filing portal, the application was filed under clause (ii) instead of clause (iii). The assessee had obtained provisional registration under clause (vi). The CIT(E) rejected the application as non-maintainable.
Held
The Tribunal held that the error in selecting the clause was a bona fide clerical mistake and not a grave error. Relying on previous coordinate bench decisions, the Tribunal found that such technical mistakes should be corrected. The CIT(E)'s rejection was set aside.
Key Issues
Whether a clerical error in selecting the wrong sub-clause while filing an application for registration under section 12A can lead to its rejection as non-maintainable.
Sections Cited
12A, 12A(1)(ac), 12A(1)(ac)(ii), 12A(1)(ac)(iii), 12A(1)(ac)(vi), 12AB
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, PUNE BENCHES “A” :: PUNE
Before: MS.ASTHA CHANDRA & DR.DIPAK P. RIPOTE
Assessment Year: 2025-26 Navkar Ashish Seva Trust, V The CIT(E), 22, Cidco, Racca Colony, s Pune. Sharanpur Road, Maharashtra – 422002. PAN: AACTN6605L Appellant/ Assessee Respondent / Revenue Assessee by Shri Chinmayy Suhas Pathak Revenue by Shri Aditya Shukla – CIT(DR) Date of hearing 17/09/2025 Date of pronouncement 30/09/2025 आदेश/ ORDER
PER DR. DIPAK P. RIPOTE, AM:
This is an appeal filed by the assessee against the order of ld.Commissioner of Income Tax(Exemption), Pune under section 12A(1)(ac) of the Income Tax Act, 1961 dated 17.02.2025. The Assessee has raised the following grounds of appeal :
1. The learned CIT-(E), Pune has erred in rejecting application of the appellant trust filed u/s 12A(1)(ac)(ii) of the Act without appreciating that the said action was not justified on facts and in law.
2. The ld.CIT(E) failed to appreciate the clerical error committed in selecting appropriate head in drop down list provided in e-filing portal Form 10AB electronically cannot lead to denial of registration, more particularly, on the fact that appellant is fulfilling all the conditions provided u/s 12A for becoming eligible to obtain registration.
3. Without prejudice to the above grounds, the assessee respectfully requests that the matter be remanded to the CIT(E), Pune, in the interest of justice, for a merit-based determination of the application.
4. The appellant craves leave to add/ alter/ amend any of the grounds of appeal
.” Findings & Analysis :
2. We have heard both the parties and perused the records. In this case, ld.Commissioner of Income Tax(Exemption)[ld.CIT(E)] has rejected Assessee’s application for registration u/s.12A r.w.s 12AB of the Act. The relevant paragraph 5, 6 and 7 of the order are reproduced as under : “5. In reply, the assessee admitted that while filing the application under in Form 10AB due to typographical error the application was furnished in Form No. 10AB u/s 12A(1)(ac) (ii) instead of u/s 12A(1)(ac) (iii) of the IT Act. It further stated that the assessee has obtained provisional registration under sub-clause (vi) of clause (ac) of sub-section (1) of section 12A of the IT Act and therefore, the application was required to be made u/s 12A(1)(ac) (iii) of the Act. The assessee, however, contended that it was a bona fide mistake committed by the assessee while filing the Form 10AB.
6 The assessee's contention is duly considered. The present application is filed by the assessee under clause (ii) of section 12A(1)(ac) of the Income Tax Act, 1961. The provisions of clause (ii) of section 12A(1)(ac) are related to application for renewal of regular 2 12AB of the Act and the period of said registration is about to expire. The copy of order submitted by the assessee is a copy of provisional registration under section 12AB read with clause (vi) of section 12A(1)(ac) of the Income Tax Act, 1961 and not a copy of regular registration under section 12AB read with clause (i) or clause (iii) of section 12A(1)(ac) of the Income Tax Act, 1961. As such, the prerequisite for application under clause (ii) of Section 12A(1)(ac) of the Income Tax Act, 1961 is not fulfilled in this case. Therefore, prima-facie it is seen that the application is not maintainable.
7. In view of the above, the application filed by the assessee is treated as non-maintainable and hence, 'rejected' for statistical purposes without going into the merits of the case and no adverse inference is drawn against the assessee.”
2.1 Thus, ld.CIT(E) has rejected application, because Assessee in the application has mentioned a wrong clause. Ld.AR during the proceedings has admitted that by mistake the incorrect clause was mentioned. This said fact is mentioned in the Para 5 of ld.CIT(E)’s order. Thus, it is an admitted fact that inadvertently assessee mentioned incorrect sub-clause.
In this case, assessee has received provisional registration u/s.12A(1)(ac)(vi) of the Act, on 31.08.2021 which is valid up to A.Y.2024-25. 3
Mentioning of wrong clause cannot be a grave mistake. On identical issue, the ITAT Pune in the case of National Association for the Blind Vs. CIT(Exemption) in has held as under : “6. We have heard Ld. Counsels from both the sides and perused the material available on record and also copy of case laws relied on by the assessee. We find that admittedly, the assessee trust was required to file application under clause (iii) of section 12A(1)(ac) of the IT Act but due to inadvertent error the application was filed under clause (vi) of section 12A(1)(ac) of the IT Act and for this reason alone Ld. CIT, Exemption, Pune rejected its application for registration. We find that under identical situations, a Co-ordinate Bench of this Tribunal in the case of Raj Krishan Jain Charitable Trust (supra) allowed the appeal of the assessee by observing as under :-
“9. As contended the appellant has committed a technical mistake in making the application under Section 12A(1)(ac)(ii) instead of clause (iii) of clause (ac) of sub-section (1) of section 12A of the Act. As pointed out the appellant has filed revised form 10AB for seeking registration under the correct provision i.e. Section 12A(1)(ac)(iii) which can also be considered.
In consonance with the decision rendered by the co-ordinate Bench, the typographical error deserves to be corrected. Accordingly, the appeal deserves to be allowed and impugned order dated 15.03.2024 of Ld. CIT (E) is liable to be set aside. Hence, the appeal is allowed and we set aside the order of Ld.CIT(E) dated 15-03-2024 and remand the matter back to the 4 file of the CIT(E) for fresh adjudication by considering amended
In the result, the appeal filed by the assessee is allowed for statistical purpose.”
Respectfully following the above decision passed by the Coordinate Bench of this Tribunal (supra), & considering the totality of facts of the case & in the interest of justice, we deem it proper to set-aside the order passed by Ld. CIT, Exemption, Pune and remand the matter back to him with a direction to treat the application already filed by the assessee as under clause (iii) of section 12A(1)(ac) of the IT Act instead of under clause (vi) of section 12A(1)(ac) of the IT Act and decide the same as per fact and law after providing reasonable opportunity of hearing to the assessee. The assessee is also hereby directed to respond to the notices issued by Ld. CIT, Exemption, Pune in this regard and produce supporting documents/evidences in support of application for registration without taking any adjournment under any pretext, otherwise, Ld. CIT, Exemption, Pune shall be at liberty to pass appropriate order as per law. Thus, the grounds of appeal filed by the assessee are partly allowed.
4.1 Similar view has been taken by ITAT Pune in the case of Connecting Trust vs. CIT(Exemption) in ITA No.2437/PUN/2024.
The facts of the present case and National Association for the Blind are identical, therefore, respectfully following the Coordinate Bench decisions(supra), we set-aside the order of ld.CIT(E) to ld.CIT(E) for denovo adjudication, we direct the ld.CIT(E) to 5 Assessee to consider under the Correct Sub-Clause of Section 12A of the Act. The Assessee shall be provided opportunity of hearing. The Assessee shall file necessary documents before the ld.CIT(E). Accordingly, Grounds of appeal raised by the Assessee are allowed for statistical purpose.
In the result, appeal of the assessee is allowed for statistical purpose. Order pronounced in the open Court on 30 September, 2025.