JANTA SARVAJANIK KELVANI MANDAL,SURAT vs. CIT(EXEMPTION), AHMEDABAD

4. Aggrieved by the order of CIT(E), the assessee filed appeal before the Tribunal. The learned Authorized Representative (ld. AR) filed a paper book containing 33 pages, which includes submission, registration u/s 12AA and 80G, application for registration u/s 12AA in Form 10AB. He submitted that & 273/SRT/2025/AY.2024-25 Janta Sarvajanik Kelvani Mandal the assessee-trust was established in 1966 to run educational institution in Bardoli Taluka, Surat. He submitted that assessee-trust had provided e-mail Id, i.e., ‘jskm.bardoli230@gmail.com’ in Form 10AB; but the ld. CIT(E) sent notice to wrong e-mail Id, due to which assessee did not file reply. He also submitted that appellant-trust filed application inadvertently under wrong section codes. There was clerical error in section code from drop down box. Since the notice issued by ld. CIT(E) was not received by the assessee-trust, no reply or request to correct section code was made. Since the assessee- trust has furnished all the required documents and information necessary for the registration, the ld. CIT(E) holds no negative opinion except for wrong selection of section code. The ld. AR relied upon various decisions of Tribunals in cases of (i) Alka Periwal Charitable Trust vs. CIT(E), 2021 Taxpub(DT) 3817 (Surat – Trib.), (ii) Shree Swaminarayan Gadi Trust vs. CIT(E), (2024) 207 ITD 666 (Surat – Trib.), (iii) Sarda Mission Sevashram vs. CIT(E), in dated 31.01.2024. Therefore, ld. AR requested that the order of ld. CIT(E) may be set aside in the interests of justice and the ld. CIT(E) may be directed to decide the application of the assessee on merit after removal of the defects.

& 273/SRT/2025/AY.2024-25 Janta Sarvajanik Kelvani Mandal 6. We have heard both the parties and perused the materials available on record. There is no dispute that the assessee had applied for registration under new provisions of section 12AB of the Act. The CIT(E) issued only one notice on 13.09.2024. The assessee failed to furnish requisite details / documents. The CIT(E) found that the assessee has made the application under incorrect section code. Therefore, he rejected the application. He has not issued any show cause notice or clarification regarding the mistakes in the applications filed by the appellant. The ld. AR submitted that assessee- trust was not familiar with exemption provisions and entered into the incorrect section codes while filing the application. We find that it was an inadvertent mistake and the assessee was not given any opportunity to explain or cure such defects by the CIT(E). The ld. AR has explained the facts and prayed for correction in the application. In our view, the mistake in filing the entry was not fatal and could be considered under the appropriate sub- clause or clause of sections 12AB of the Act. Otherwise, the assessee has provided all the details and information while applying for registration u/s 12AB of the Act. Being first appellate authority, the plea of assessee for correction in Form is accepted and the order of CIT(E) is set aside. He is directed to allow the assessee to rectify or amend the relevant clause/sub- clause of section 12AB of the Act. Considering the fact that the application of assessee was not considered on merit, we deem it appropriate to direct the CIT(E) to treat the application of assessee on merit and pass the order in & 273/SRT/2025/AY.2024-25 Janta Sarvajanik Kelvani Mandal accordance with law. Under similar circumstances, the Co-ordinate Benches of ITAT and Hon’ble Orissa High Court in the following cases have set aside the matter to the file of CIT(E) to decide the issue on merit; viz., (i) Rambha Charitable Trust vs. CIT(E), in (ii) Shree Swaminarayan Gadi Trust Vadtal (SVG), in ITA No.369 & 370/Srt/2024, (iii) Dinshaw Daboo Charity Trust vs. CIT(E), (iv) Mandava Foundation vs. ITO(E) and (v) Parmeshwari Bai Memorial Trust vs. CIT(E), 161 taxmann.com 311 (Orissa). Before passing the order, the CIT(E) shall grant reasonable and adequate opportunity of hearing to the assessee. The assessee is also directed to furnish complete details and make all compliances before CIT(E) by not seeking adjournment without any valid reasons. In the result, the grounds of appeal raised by the assessee are allowed for statistical purpose.

7. In the result, appeals filed by the assessee are allowed for statistical purposes. (AY:2024-25):

8. The grounds of appeal raised by the assessee are as follows: “(1) Learned CIT(Exemption) has erred in law and on the facts of the case in rejecting the permanent registration of the Appellant under section 80G of the Act. (2) Your Appellant reserve the right to add, delete, modify or revise any ground of appeal.”

9. It is seen that the ld. CIT(E) has issued only one notice of hearing, i.e., on 18.09.2024 and proceeded to dismiss the appeals on the ground that the assessee failed to prove that it holds a valid registration u/s 12A/12AB of the & 273/SRT/2025/AY.2024-25 Janta Sarvajanik Kelvani Mandal Act in (supra). We have already set aside the order of ld. CIT(E) wherein he rejected the application of registration of trust, in our order in ITA No.277/SRT/2024 cited supra. Consequently, these orders of ld. CIT(E) are also set aside and remitted to the file of CIT(E) for passing fresh order after granting reasonable and sufficient opportunity of being heard to the appellant, after deciding the application for registration referred above. For statistical purposes, the appeal of the assessee is treated as allowed.