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Facts
The assessee, Ruah Community Foundation, applied for provisional registration under Section 12AB of the Income Tax Act, which was granted. Subsequently, the assessee applied for final registration but mentioned the wrong section for regularization of provisional registration. The CIT(E) rejected the application, citing the absence of a provision for rectification.
Held
The Tribunal observed that the assessee had made a technical breach by mentioning the wrong section. All necessary particulars for final registration were available on record. The Tribunal directed the CIT(E) to consider the application as filed under the correct section and decide the matter afresh.
Key Issues
Whether the CIT(E) was justified in rejecting the application for final registration due to a technical error in mentioning the wrong sub-section for regularization of provisional registration.
Sections Cited
12AB, 12A(1)(ac)(iii), 12A(1)(ac)(ii)
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Income Tax Appellate Tribunal, MUMBAI “D” BENCH : MUMBAI
Before: SHRI VIKRAM SINGH YADAV & SHRI RAHUL CHAUDHARY
BEFORE SHRI VIKRAM SINGH YADAV, ACCOUNTANT MEMBER AND SHRI RAHUL CHAUDHARY, JUDICIAL MEMBER Assessment Year : 2026-27 Ruah Community Foundation, CIT (Exemptions), Flat No. 503, Plot No. 11, 601, 6th Floor, Dhvani Co-Op. Hsg. Soc., vs. Cumballa Hill, Ganesh Nagar, MTNL TE Building, Pedder Road, Kandivali-West, Dr.Gopalrao Deshmukh Marg, Mumbai-400067. Cumballa Hill, PAN : AALCR9217Q Mumbai-400026. (Appellant) (Respondent) For Assessee : Shri Krish Desai (Virtually present) For Revenue : Shri Umashankar Prasad, CIT-DR Date of Hearing : 08-01-2026 Date of Pronouncement : 12-01-2026 O R D E R PER VIKRAM SINGH YADAV, A.M : This is an appeal filed by the assessee against the order of the Learned Commissioner of Income Tax (Exemptions)-Mumbai [„Ld.CIT(E)‟], wherein the assessee‟s application, seeking registration u/s. 12AB of the Income Tax Act, 1961 („the Act‟) was rejected vide order dt. 30-08-2025.
Briefly stated, facts of the case are that the assessee has applied for provisional registration u/s 12AB which was granted vide order dt. 19-10- 2022. The assessee thereafter sought final registration and moved an application in Form-10AB. The Ld.CIT(E) observed that as the Trust is provisionally registered, the application for regularization of provisional registration ought to be filed u/s. 12A(1)(ac)(iii) of the Act, whereas the assessee has applied for regularization of provisional registration u/s. 12A(1)(ac)(ii) of the Act and after issuing show cause and considering the fact that there is no provision under the Act, which allows the rectification/amendment in the clause under which the application has been filed, the application so filed by the assessee-Trust was rejected. Against the said order the assessee is in appeal before us.
Both the parties were heard and material available on record was perused. We find that it was only a technical breach, wherein the assessee has mentioned the wrong section under which it has moved an application for seeking final registration and for all intend and purposes and even from a documentation perspective and the requisite form for seeking the final registration, all necessary particulars are already available on record. We, therefore, direct the Ld.CIT(E) to consider the application already filed as filed u/s. 12A(1)(ac)(iii) of the Act and decide the matter afresh as per law, after providing necessary opportunity to the assessee.