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Facts
The assessee, a trust running a website and mobile application, was granted provisional registration under Section 12A. Their application for final registration was rejected by the CIT(E) on technical grounds, specifically for mentioning an incorrect sub-clause and alleged delay in filing Form-10AB.
Held
The Tribunal held that the incorrect mention of the clause was an inadvertent and curable defect, not an illegality. They found reasonable cause for the delay in the second application due to the rejection of the first.
Key Issues
Whether the rejection of the assessee's application for final registration by the CIT(E) on technical grounds was justified, including delay, was justified, was justified, and if the assessee should be granted another opportunity to rectify the defect.
Sections Cited
12A, 12A (1)(ac)(ii), 12A (1)(ac)(iii)
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Income Tax Appellate Tribunal, ‘A’ BENCH: CHENNAI
Before: SHRI GEORGE GEORGE KAND MS. PADMAVATHY.S
आदेश / O R D E R
PER PADMAVATHY.S, A.M: This appeal by the assessee is against the order of the Commissioner of Income Tax (Exemptions), Chennai (in short "CIT(E)") dated 29.09.2025.
The assessee is a trust and is engaged in the activity of running a website and mobile application which helps pilgrims to access history, location and sacred poems of ancient Shiva Temple situated across Tamil Nadu. The assessee vide order dated 20.08.2022 was given a provisional registration u/s. 12A of the income tax Act, 1961 (in short 'the Act"). The assessee subsequently made an application u/s. 12A (1)(ac)(ii) of the Act on Shaivam ORG Trust :- 2 -:
18.09.2022 seeking final registration. The CIT(E) vide order dated 04.03.2023 has rejected the said application stating that the application made by the assessee is filed under wrong section where the assessee ought to have filed the application u/s. 12A(1)(ac)(iii) of the Act. The assessee subsequently filed an application in Form-10AB under the correct section on 30.01.2025. The CIT(E) rejected the application filed by the assessee on the ground that there is a delay in filing Form-10AB and that the activities of the trust are not charitable in nature. The assessee is in appeal before the Tribunal against the order of the CIT(E).
The Ld. Authorized Representative (AR) of the assessee submitted that the CIT(E) has rejected the registration stating that there is a delay in filing Form-10AB without considering the fact that the assessee had initially filed the application well within the time and the same was rejected on the ground of wrong mentioning of section. The Ld. AR accordingly submitted that the delay in second application is due to the reason of the first application being rejected and prayed that the issue may be send back to the CIT(E) with a direction to condone the delay.
We have heard the parties and perused the material available on record. The application of the assessee for final registration under section 12A of the Act was rejected on the technical ground that the assessee had mentioned an incorrect sub-clause. It is an admitted position that the assessee was holding provisional registration under section 12A of the Act and had filed the application on 18.09.2022, well within the prescribed time. It is also relevant to note that all material facts and details were already available on record before the CIT (E) at the time of filing of the original application. In our Shaivam ORG Trust :- 3 -: considered view, the incorrect mention of the relevant clause, admittedly due to inadvertence, constituted only a curable defect and not an illegality. The CIT (E) could have afforded an opportunity to the assessee to rectify the defect or could have treated the application under the appropriate clause; however, the application came to be rejected on technical grounds. Therefore, we find merit in the submission that there existed reasonable cause for the delay in filing the second application by the assessee. Considering the facts peculiar to the present case and in the interest of natural justice and fair play, we deem it appropriate to grant one more opportunity to the assessee. Accordingly, the matter is restored to the file of the CIT (E) with a direction to consider the application for registration under section 12A on merits, after calling for such details as may be required, and to decide the same in accordance with law. The assessee is directed to file all requisite details and to cooperate with the proceedings.
In result the appeal filed by the assessee is allowed for statistical purposes. Order pronounced on 27th day of January, 2026 at Chennai.
Sd/- Sd/- (जॉज� जॉज� के) (पदमावती यस) (Padmavathy.S) (George George K) उपा�� / Vice President लेखा लेखा सद�य लेखा लेखा सद�य सद�य /Accountant Member सद�य चे�नई/Chennai, �दनांक/Dated: 27th January, 2026. EDN, Sr. P.S Shaivam ORG Trust :- 4 -: