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Facts
The assessee inadvertently filed an application for registration under the wrong clause of Section 12A(1)(ac) and also sought approval under Section 80G(5) through incorrect provisions. The CIT rejected both applications, citing that a form filed under one clause cannot be considered under another.
Held
The Tribunal held that a technical mistake in selecting the wrong clause due to ignorance or a typographical error should be rectifiable. The assessee was permitted to file the application under the correct clause, and the matter was remanded for fresh adjudication.
Key Issues
Whether an assessee should be allowed to correct a technical error in selecting the wrong clause for registration/approval applications before the IT Act, and if such matters should be remanded for fresh consideration.
Sections Cited
12A(1)(ac)(iv), 80G(5), 12A(1)(ac)(iii), 12A(1)(ac)(ii)
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Income Tax Appellate Tribunal, PUNE BENCH “B”, PUNE
Before: SHRI MANISH BORAD & SHRI VINAY BHAMORE
ORDER PER VINAY BHAMORE, JM: Both the above captioned appeals filed by the assessee are directed against the separate orders dated 24.01.2025 and 06.06.2025 passed by Ld. CIT, Exemption, Pune rejecting the application for registration in Form No.10AB u/s 12A(1)(ac)(iv) of the IT Act filed on 20.08.2024 and denying the application for approval in Form No.10AB under clause (iii) of first proviso to sub- section (5) of section 80G of the IT Act filed on 10.12.2024 respectively.
2. According to the Registry, there is a delay of 106 days in filing of the present appeal. We are satisfied with the reasons mentioned in the affidavit for condonation that the applicant was prevented by sufficient cause for not filing the appeal within the prescribed time limit. After hearing Ld. DR, we condone the delay of 106 days and proceed to adjudicate the appeal.
Facts of the case, in brief, are, that the assessee filed application for registration in Form No.10AB u/s 12(1)(ac)(iv) of the IT Act on 20.08.2024. A notice was issued by Ld. CIT, Exemption, Pune through ITBA portal on 17.10.2024 requesting the assessee to clarify why he made application under 12(1)(ac)(iv) of the IT Act and how it is applicable to him. In response to the above notice, the assessee submitted before Ld. CIT, Exemption, Pune that the assessee trust has inadvertently filed the application under wrong clause and he requested before Ld. CIT, Exemption, Pune to consider the said application under right clause. However, Ld. CIT, Exemption, Pune has not accepted the same on the ground that the form filed under one clause cannot be considered to be filed under another clause of section 12A(1)(ac) of the IT Act. It is this order against which the assessee is in appeal before this Tribunal.
& 1722/PUN/2025 4. Ld. AR appearing from side of the assessee submitted before us that the application was prepared by the assessee himself and inadvertently wrong clause was selected while furnishing the application. Ld. Counsel of the assessee submitted before the bench that in number of decisions co-ordinate benches of this Tribunal has already held that if due to ignorance or typographical error wrong section code has been selected then the assessee be permitted to file application under correct code or to treat the same application as filed under the correct clause. Accordingly, it was requested before the bench to set-aside the order passed by Ld. CIT, Exemption, Pune and further requested to issue direction to treat the application as filed under the requisite/correct code.
Ld. DR appearing from side of the Revenue placed heavy reliance on the order passed by Ld. CIT, Exemption, Pune and requested to confirm the same.
We have heard Ld. Counsels from both the sides and perused the material available on record. We find that admittedly the assessee made compliance to the initial notices issued by the Ld. CIT, Exemption, Pune. It is the sole contention of the assessee that inadvertently the wrong code/clause was selected which resulted in rejection of application for registration. From the perusal of grounds of appeal
, we find that the application was required to be & 1722/PUN/2025 filed u/s 12A(1)(ac)(iii) of the IT Act, however the counsel of the assessee has not produced copy of provisional registration u/s 12AB of the IT Act so that it can be presumed that the applicable clause is u/s 12A(1)(ac)(iii) of the IT Act instead of u/s 12A(1)(ac)(iv) of the IT Act. We find that under identical situations, a Co-ordinate Bench of this Tribunal in the case of Raj Krishan Jain Charitable Trust in order dated 05.06.2024 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.
10. 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 file of the CIT(E) for fresh adjudication by considering amended application of the appellant under Section 12A(1)(ac)(iii) of the Act, or he can call for amended application from the appellant.
In the result, the appeal filed by the assessee is allowed for statistical purpose.”
Respectfully following the above decision passed by the Co- ordinate Bench of this Tribunal (supra) and considering the totality of the facts of the case and in the interest of justice and without going into the merits of the case, we deem it appropriate to set-aside the order passed by Ld. CIT, Exemption, Pune and remand the & 1722/PUN/2025 matter back to him with a direction to treat the application for registration as filed under required/desired section code and decide the application for registration afresh and as per fact and law after providing reasonable opportunity of hearing to the assessee. The assessee is also hereby directed to comply with the notices issued by Ld. CIT, Exemption, Pune and produce requisite documents/information in support of the application for registration, otherwise, Ld. CIT, Exemption, Pune shall be at liberty to pass appropriate order as per law. Thus, the grounds of appeal
raised by the assessee are partly allowed.
8. In the result, the appeal filed by the assessee in is allowed for statistical purposes.
: 9. The instant appeal is against the order passed by Ld. CIT, Exemption, Pune denying grant of approval u/s 80G(5) of the IT Act. Since we have remanded the issue of grant of registration u/s 12A(1)(ac)(iii) to the file of Ld. CIT, Exemption, Pune for de novo adjudication, therefore, in the interest of justice, it would be appropriate to remit the issue of grant of approval u/s 80G(5) as well to the file of Ld. CIT, Exemption, Pune being consequential, for de novo adjudication.