SIRSETH SARUPCHAND HUKAM CHAND CHARITABLE TRUST,INDORE vs. CIT EXEMPTION, BHOPAL

Per Paresh M Joshi, J.M.:

This is an appeal filed by the assessee Under Section 253 of

the Income Tax Act, 1961 (hereinafter referred to as the “Act” for

sake of brevity) before this Tribunal under the Act. The assessee

is aggrieved by the order bearing No.ITBA/EXM/F/EXM45/

2024-25/1068282596(1) dated 03.09.2024 passed by CIT (E)

which has rejected the request for registration under the

Page 1 of 8

Sirseth Sarupchand Hukum Chand Charitable Trust ITA No. 797/Ind/2024 - A.Y.2024-25 provisions of Section 12AB of the Act (New provision), which is

hereinafter referred to as the “impugned order”.

2.1 That the assessee is a Trust registered u/s 12A of the Act.

2.2 That in pursuance to the amendment in the Finance Act,

2020 all existing charitable or religious trusts or institutions

registered u/s 12A or 12AA of the Act were required to apply for

re-registration under the newly substituted Section 12AB in

Form 10A within due date (subsequently extended). The

designated authority would grant registration u/s 12AB or

10(23C) for a period of 5 years.

2.3 That pursuant to the amendment ,the assessee trust filed

Form 10A on 14.12.2021 along with all supporting documents

including registration certificate u/s 12A obtained on

12.06.2001. However due to wrong filling of section code i.e.

02-Item(A) of Sub clause (vi) of Clause (ac) of Sub Section (1) of

Section 12A in Form 10A instead of correct section code 01-sub

clause(1) of clause(ac) of Sub section(1) of Section 12A.

2.4 That the assessee trust initially got provisional registration

for three years i.e. Assessment Year 2022-23 to 2024-25 in

Page 2 of 8

Sirseth Sarupchand Hukum Chand Charitable Trust ITA No. 797/Ind/2024 - A.Y.2024-25 Form 10AC instead of five (5) years since the registration of

existing trusts/institution registered u/s 12A & 12AA of the Act

is of five years.

2.5 That the assessee trust after getting the provisional

registration filed Form 10AB on 15.03.2024 for final/regular

registration as per the amended provision of the Act.

2.6 That the Ld. CIT(Exemption), Bhopal issued a notice

dated 02.08.2024 whereby the assessee trust was asked to

provide various informations/documents which was duly

complied by the assessee trust vide letter dated 16.08.2024.

That however in the letter/notice (supra) the Ld. CIT(E), Bhopal

however had not pointed out that the application for

registration in Form 10AB is filed under wrong sub-clause i.e.

filed up section code 01-sub clause(ii) of clause(ac) of Sub Section

(1) of Section 12A instead of correct code 01, sub clause (I) of

Section 12A(1)(ac) of the Act and thereby did not allow any

opportunity whatsoever to correct the technical error which was

committed by the assessee trust and rejected the application for

registration as and by way of “impugned order”.

Page 3 of 8

Sirseth Sarupchand Hukum Chand Charitable Trust ITA No. 797/Ind/2024 - A.Y.2024-25 2.7 That being aggrieved by the “Rejection for Registration”

as and by way of the “impugned order” the assessee has filed

the present appeal in Form No.36 and has raised the following

grounds of appeal against the “impugned order” which grounds

are stated as below:-

S.No. Particulars Tax Effect

1 That impugned order passed by the Ld. CIT (Exemption) is bad in law, without jurisdiction, and without allowing proper and reasonable opportunity to make correction in the application form for re-registration. 2.1 That on the facts and in the circumstances of case and in law, the Ld. CIT (Exemption) erred in rejecting the application for re-registration without providing reasonable opportunity to correct technical mistake of section code in form 10AB filed for re-registration of Trust. 2.2 That on the facts and in the circumstances of case and in law, the Ld. CIT (Exemption) failed to appreciate the facts that the issue in question was highly technical, thus the CBDT also appreciated the genuine hardship of the institutions/ Trust and allowed opportunity to submit fresh application by filing correct section code, but the Ld. CIT (Exemption) has not provided such opportunity to the Trust.

3.1 The hearing in the present appeal took place before this

Tribunal on 28.04.2025 when the Ld. AR for and on behalf of the

assessee appeared before us and interalia submitted that the

“impugned order” is bad in law, illegal and not proper. It is

Page 4 of 8

Sirseth Sarupchand Hukum Chand Charitable Trust ITA No. 797/Ind/2024 - A.Y.2024-25 passed in the violation of the principles of natural justice. It thus

deserves to be set aside. It was emphatically contended that

while it is true and fact that the assessee claimed final

registration of Trust under “Section code-01-Sub clause(ii) of

clause (ac) of sub-section(1) of Section 12A in Form No.10AB

dated 15.03.2024” which Ld. CIT(E) has rightly held to be in-

applicable in the “impugned order” but the Ld. CIT(E) ought to

have given assessee trust at least an opportunity to rectify such a

mistake. Admittedly no such opportunity was given to the

assessee trust to correct such a mistake, consequently the

“impugned order” came to be passed. The Ld. AR contended

that Ld. CIT (E) ought not to have adopted such a “highly

technical mistake” as gross error vitiating the registration

process, as the assessee trust is very old trust originally incorporated in year 1921 on 9th June ( page 13 of paper book).

It was also contended that the Ld. CIT (E) had in fact issued a

notice dated 02.08.2024 which was duly complied by the

assessee trust vide their reply dated 16.08.2024 and that the

same was accepted by the Ld. CIT (E) without finding any

deficiency/error. The Ld. CIT (E) therefore ought to have given the

Page 5 of 8

Sirseth Sarupchand Hukum Chand Charitable Trust ITA No. 797/Ind/2024 - A.Y.2024-25 assessee trust an opportunity to make suitable correction which

was not given. Such error or mistake was not even pin pointed in

notice dated 02.08.2024, which was issued for making

compliance only. Per contra Ld. DR for an on behalf of the

Revenue interalia stated very fairly that Ld. CIT (E) ought to have

given an opportunity to the assessee trust to rectify such error or

mistake which perse appears to be a bonafide and genuine one.

Under these peculiar facts and circumstances of the case it

would be “just and fair” that the “impugned order” be set aside

and remanded back to the file of CIT (E).

4.1 We now have to decide the legality, validity and the

proprietary of the “Impugned Order” basis records of the case

and rival contentions canvassed before us.

4.2 We have carefully perused the records of the case.

4.3 We basis records of the case and after hearing and upon

examining the rival contentions are of the considered opinion

that “Impugned order” is in violation of the principles of natural

Page 6 of 8

Sirseth Sarupchand Hukum Chand Charitable Trust ITA No. 797/Ind/2024 - A.Y.2024-25 justice as Ld. CIT (E) ought to have given an opportunity to the

assessee trust to rectify the mistake which opportunity was not

given. We also hold that it is substance which is of importance

and not the Form or clauses mentioned therein. Mistake/error is

not that serious enough which should result in rejection of an

application for final registration which was made bonafidely.

There is no finding in the “impugned order” that it was made

willfully and/or deliberately with intention to make a wrongful

gain. Under these facts and circumstances we set aside the

“impugned order” back to the file of CIT (E) with a direction to

reexamine the case for final registration afresh and thereafter

pass a fresh order on denovo basis. We direct the assessee to

rectify the mistake which has occurred and quote correct

provision of law as soon as possible before Ld. CIT (E) take up the

case on denovo basis in relevant form. We direct CIT (E) to pass

a detailed order on merits, basis information and documents

provided by the assessee trust for the purpose of final registration.

Page 7 of 8

Sirseth Sarupchand Hukum Chand Charitable Trust ITA No. 797/Ind/2024 - A.Y.2024-25

5.1 The impugned order is set aside as and by way of remand

back to the file of Ld. CIT(E) on denovo basis.

5.2 Appeal of the assessee is allowed for statistical purpose.

Order pronounced in open court on 05.05.2025.

Sd/- Sd/-

(BHAGIRATH MAL BIYANI) (PARESH M JOSHI) ACCOUNTANT MEMBER JUDICIAL MEMBER

Indore िदनांक/ Dated : 05/05/2025 Dev/Sr. PS Copies to: (1) The appellant (2) The respondent (3) CIT (4) CIT(A) (5) Departmental Representative (6) Guard File By order COPY Senior Private Secretary Income Tax Appellate Tribunal Indore Bench, Indore

Page 8 of 8