MAHARASHTRA GANDHI SMARAK NIDHI,PUNE vs. C.I.T (EXEMPTION), PUNE, PUNE

the assessee has challenged the order of the CIT(Exemption) in rejecting the application for registration u/s 12A of the Act while relates to the order of the CIT(Exemption) in denying the approval u/s 80G of the Act. ITA No.2651/PUN/2025 3. Facts of the case in ITA No.2651/PUN/2025, in brief, are that the assessee filed an application in Form No.10AB on 14.10.2021 for registration of the trust under clause (iii) of section 12A(1)(ac) of the Act. With a view to verify the genuineness of the activities of the assessee and compliance to requirements of any other law for the time being in force by the trust / institution as are material for the purpose of achieving its objects, a notice was issued through ITBA portal requesting the assessee to upload certain & 2573/PUN/2024 information / clarification. In response to the same, the assessee filed certain details. The Ld. CIT(Exemption) while going through those details found certain discrepancies in the submissions filed by the assessee for which he issued another notice to clarify on those issues. However, in absence of any response from the side of the assessee trust, the Ld. CIT(Exemption) rejected the application filed by the assessee for grant of registration u/s 12A of the Act on the ground of selection of wrong section code by the assessee while filing the said application.

Aggrieved with such order of Ld. CIT(Exemption), the assessee is in appeal before the Tribunal by raising the following grounds: “

The Ld. Counsel for the assessee at the outset submitted that the assessee inadvertently by mistake filed the application in Form 10AB for grant of registration u/s 12A of the Act under the wrong section code, on account of which the Ld. CIT (Exemption) has rejected the assessee’s application. He submitted that the mistake in wrong selection code in e-filing of Form 10AB is not fatal denying the registration of a charitable trust and placed reliance on the decision of Delhi Tribunal in the case of Raj Krishna Jain Charitable Trust (ITA no. 1553/Del/2024) and in the case of Shree Swaminarayan Gadi Trust (2024) 162 taxmann.com 772 (Surat) in support thereof. The Ld. AR also relied on the decision of the Pune Bench of the Tribunal in the case of U V Patel Foundation (ITA No. 1956/PUN/2024, dated 01.12.2024).

We have heard the heard the Ld. Representatives of the parties, perused the order of the Ld. CIT(Exemption) and the paper book filed by the Ld. AR on behalf of the assessee as well as the judicial precedents relied upon by the Ld. AR. We find that the Ld. CIT(Exemption) issued a show cause notice seeking clarification on wrong selection of code by the assessee while e-filing Form 10AB. However, in the absence of any reply furnished by the assessee to the said notice, the Ld. CIT(Exemption) rejected the registration application of the assessee. We find that this issue is no more res-integra and covered in favour of the assessee by catena of decisions of the various benches of the Tribunal involving similar set of facts as that of the assessee in the present appeal. In our view, wrong selection of section code/clause would not disentitle the assessee to its rightful claim and cannot be treated as fatal to the proceedings initiated after the filing of the application. Support may be drawn from the decision of the Pune Bench of the Tribunal in the case U V Patel Foundation (supra) wherein the order of the Ld. CIT(Exemption) was set aside with a direction to decide the application afresh by treating the same as filed under the correct section. It is the submission of the Ld. Counsel for the assessee that given an opportunity the assessee is in a position to substantiate its case by filing all the relevant details before the Ld. CIT(Exemption). Considering the totality of the facts of the case and in the interest of justice, we deem it fit, to grant an opportunity to the assessee to substantiate its case before the Ld. CIT(Exemption) by setting aside the matter to the file of Ld. CIT(Exemption). We, therefore, set aside the impugned order of the Ld. CIT(Exemption) who shall give an opportunity to the assessee to file the correct application/ treat the original application as filed under the correct section and then decide the case on merits denovo as per facts and law, after granting one final opportunity of hearing to the assessee. The assessee is also directed to remain vigilant in respect of the notice(s) of hearing issued by Ld. CIT(Exemption) and submit the details/ documents as may be required/called upon by the Ld. CIT(Exemption) on the appointed date without seeking any adjournment under any pretext, failing which the Ld. CIT(Exemption) is at liberty to pass appropriate order as per law. We hold and direct accordingly. The grounds raised by the assessee are accordingly allowed for statistical purposes.

Both the sides are unanimous in stating that the facts of the case in ITA No. 2573/PUN/2024 are similar to the facts in ITA No. 2651/PUN/2024 narrated above. It is the submission of the Ld. AR that since the Ld. CIT(Exemption) has rejected the grant of registration u/s 12A of the Act and cancelled the provisional registration granted earlier, he refused to grant approval u/s 80G of the Act. Since the grant of approval under section 80G is consequential to the registration granted under section 12A of the Act and we have by our above order of even date, set aside the issue of grant of registration under section 12A of the Act for denovo consideration of the Ld. CIT(Exemption), we set aside this appeal too to the file of the Ld. CIT(Exemption) in the same terms. Accordingly, the grounds of appeal raised by the assessee in ITA No. 2573/PUN/2024 are hereby allowed for statistical purposes.

To sum up, both the appeals of the assessee in & 2573/PUN/2024 are treated as allowed for statistical purposes.