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Facts
The assessee, Shia Immami Ismalia Girls Academy, applied for registration under Section 12A(1)(ac)(ii) in Form No. 10AB. The CIT(E) rejected the application, citing it as prima facie non-maintainable because the assessee had already received provisional registration and should have applied under Section 12A(1)(ac)(iii). The assessee contended this was a typographical error by their consultant. The appeal was filed with a 53-day delay, which the Tribunal condoned.
Held
The Tribunal determined that the rejection by the CIT(E) was based on a typographical error. Citing similar precedents, the Tribunal directed the CIT(E) to admit the application under the correct Section 12A(1)(ac)(iii) and adjudicate it on merits, allowing the assessee to submit an amended application and relevant documents. The appeal was allowed for statistical purposes.
Key Issues
Whether an application for registration under Section 12A can be rejected solely due to a typographical error in quoting the sub-section, and if such an error warrants a re-adjudication.
Sections Cited
12A(1)(ac)(ii), 12A(1)(ac)(iii)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, RAJKOT BENCH, RAJKOT
Before: DR. ARJUN LAL SAINI & SHRI DINESH MOHAN SINHA
Appellant by : Shri R. B. Shah, AR Respondent by : Shri Sanjay Punglia, CIT DR Date of Hearing : 02/06/2025 Date of Pronouncement : 30/06/2025 आदेश / O R D E R PER DR. A. L. SAINI, AM: Captioned appeal filed by the assessee, is directed against the order passed by the Learned Commissioner of Income Tax (Exemption), Ahmedabad vide order dated 04.09.2024, wherein Ld. Commissioner of Income Tax (Exemption) rejected the application filed by the assessee in Form No. 10AB under Section 12A(1)(ac)(ii) of the Act holding that the application filed by the assessee under Section 12A(1)(ac)(ii) of the Act in Form No. 10AB is prima facie not maintainable.
2. The grounds of appeal raised by the assessee are as follows:
“1. That the learned CIT (Exemption) has erred both on facts and in law in not granting registration to the appellant Trust on the mere ground that in the application made in Form No. 10AB of the Income Tax Rules, section 12A(1)(ac)(ii) of the Income Tax Act had inadvertently been typed on account of typographical error instead of section 12A(1)(ac)(iii) of the Act. 2. The Appellant craves leave to add, alter and amend or delete any of the grounds of appeal before or at the time of hearing.”
.N.A. Shia Immami Ismalia Girls Academy 3. The appeal filed by the assessee, before this Tribunal is barred by limitation by 53 days. The assessee moved a petition requesting the Bench to condone the delay. The Ld. Counsel for the assessee submitted that assessee did not get the order of the Ld. CIT(E), neither physically not through email. However, later on, the Advocate of the assessee got the order on the Income Tax Portal and thereafter, the appeal was filed immediately before this Tribunal. Therefore, this delay of 53 days have occurred which may kindly be condoned in the interest of justice.
On the other hand, the Ld. D.R. for the Revenue opposed the prayer of the assessee for condonation of delay and stated that delay should not be condoned.
We have heard the both the parties on this primary issue, and we note that the order of the Ld. CIT(E) was not delivered on the assessee, on time either through email or by physical mode, therefore, this minor delay of 53 days has occurred in filing this appeal before the Tribunal. Having regard to the reasons given in the petition for condonation of delay, we condone the delay of 53 days and admit the appeal of the assessee for hearing.
6. We note that Ld. CIT(E), on merit rejected the assessee’s application observing as follows:
“The applicant has filed an application for registration under section 12A(1)(ac)(ii) of the I.T Act in Form no. 10AB electronically and as per data available, the same is filed in ITBA on 28/03/2024. This application was found to be prima-facie non-maintainable and accordingly vide letter dated 12/06/2024 certain clarification were sought from the applicant. In response to the same, the application has filed its reply on 19.06.2024.
On perusal of the details available on record, it is noticed that the applicant has been granted provisional registration under Sub clause (vi) of clause (ac) of sub-section (1) of section 12A vide order on 04-10-2023 for the period from A.Y.2024-25. Accordingly, the assessee was required to file the application u/s. 12A(1)(ac)(iii) in lieu of 12A(1)(ac)(ii).
.N.A. Shia Immami Ismalia Girls Academy 3. In view of the above, the application filed on 28/03.2024 in Form No. 10AB, u/s. 12A(1)(ac)(ii) is non maintainable and liable to be rejected as such, without going into the merits. Therefore, the present application is rejected for statistical purposes.”
In this context Ld. Counsel for the assessee submitted that during the proceedings before Ld. CIT(E) the assessee submitted documents and evidences. However, this has not been considered and Ld. CIT(E) had rejected the assessee’s application, because, assessee, by mistake quoted wrong section. The mistake in quoting the wrong section could be rectified by Ld. CIT(E) after intimating to the assessee by issuing notice, however, Ld. CIT(E) has failed to do so.
On the other hand, Ld. D.R. for the Revenue submitted that assessee’s matter may be remitted back to the file of Ld. CIT(E) for fresh adjudication with the direction to the assessee to re-submit all the details and documents before the Ld. CIT(E).
We have heard the rival submissions and perused the material available on record. We note that Ld. CIT(E) has rejected the assessee’s application on account of typographical and inadvertent mistake of the consultant in quoting the relevant section. The Ld. CIT(E) has rejected the assessee’s application stating that assessee has mentioned the wrong section in the application for registration. However, it is a typographical error which should have been corrected by the Ld. CIT(E) with the consent of the assessee and the Ld. CIT(E) could have asked the assessee to furnish, details and documents and correct the typographical error in quoting the section. We note that the assessee trust is charitable trust established to provide educational help to needy student since 2020. The Registration was rejected only on technical grounds i.e. wrong selection of “Section 12A sub-section (1) clause (ac) sub-clause (ii)” was mentioned in the application instead of “Section12A sub-section (1) clause (ac) sub-clause (iii)”. It is typographically and inadvertent mistake by the consultant of the trust.
.N.A. Shia Immami Ismalia Girls Academy
11. We note that on similar facts the Delhi Bench of the ITAT in the case of Raj Krishan Jain Charitable Trust vs. CIT(E) in vide order dated 05.06.2024 made the following observation:
“5. We have heard both the parties and perused the material available on the record. The Ld. Senior Counsel submitted that the appellant is a charitable trust and was established on 31.03.1958. He also submitted that trust has filed form 10AB on 30.09.2023 however, inadvertently due to typing error in column No.2 was mentioned as ‘01-Sub-Clause(ii) of clause (ac) of Sub-section (1) of section 12A’ had been typed instead of clause (iii) of clause (ac) of section (1) of section 12A of the Act. He submitted that appellant has filed duly rectified revised form 10AB of the Act but application was rejected by the Ld. CIT(E).
Reliance was placed on the order of the Income Tax Appellate Tribunal, Chennai Bench in the case of Sri Jeyamkonda Choleeswara Soundaranayakai Amman Kumbhabisheka Mala Kuzhu Vs. ITO (Exemptions) reported in [2024] 159 taxmnan.com 502 (Chennai- Trib.). In this case the ITAT has held as under :- “5. After hearing both the sides and going through the facts, it is noted that the assessee has simpliciter made a technical mistake in applying u/s. 12A(1)(ac)(ii) instead of 12A(1)(ac)(iii) of the Act. It was informed to the Bench by the ld. Counsel for the assessee that even now the assessee has filed fresh Form No.10AB seeking registration u/s.12A(1)(ac)(iii) of the Act, which can also be considered. In our view, the same purpose will be served by adjudicating the same application. Hence, we set aside the order of CIT(Exemption) and remand the matter back to his file for fresh adjudication, either considering the subsequent application of assessee u/s. 12A(1)(ac)(iii) of the Act or he can call a fresh application from the assessee. In term of the above, matter restored back to the file of the CIT(Exemption).”
7. The Ld. DR supported the order of the Ld.CIT(E) and submitted that appellant has not moved the application as per Act. He moved the application under Section 12A (1) ac (ii) which was not maintainable. He, therefore, submitted that the order of the CIT(E) be upheld.
8. From the perusal of the record it is evident that the appellant has made an application form 10AB for registration of trust under Section 12A(1)(ac)(ii) of the Act. The appellant has filed the duly rectified application on the prescribed form 10AB. The Ld. CIT(E) without considering the revised application of the appellant rejected it on the technical ground. The Ld. Sr. Counsel for the appellant also stated that Ld. ITAT has considered the similar issue in which the Ld. CIT (E) order was set aside by the ITAT Chennai Bench.
9. As contended the appellant has committed a technical mistake in making the application under Section 12A(1)(ac)(ii) instead of clause (iii) of clause (ac) of sub-section (1) of section 12A of the Act. As pointed out the appellant has filed revised form 10AB for seeking registration under the correct provision i.e. Section 12A(1)(ac)(iii) which can also be considered.
In consonance with the decision rendered by the co-ordinate Bench, the typographical error deserves to be corrected. Accordingly, the appeal deserves to be allowed and impugned order dated 15.03.2024 of Ld. CIT (E) is liable to be set aside. Hence, the appeal is allowed and we set aside the order of Ld. CIT(E) dated 15-03-2024 and remand the matter back to the file of the CIT(E) for fresh adjudication by considering .N.A. Shia Immami Ismalia Girls Academy amended application of the appellant under Section 12A(1)(ac)(iii) of the Act, or he can call for amended application from the appellant.
In the result, the appeal filed by the assessee is allowed for statistical purpose.”
Considering these facts, we direct the Ld. CIT(E) to admit the assessee’s application for registration under the correct section 12A(1)(ac)(iii) of the Act and adjudicate the issue in accordance with law. We also direct the assessee to submit the amended application under section 12A(1)(ac)(iii) of the Act and also filed the relevant documents and evidences before the Ld. CIT(E) as and when called for by the Ld. CIT(E). For statistical purposes, the appeal of the assessee is treated as allowed.
In the result, the appeal of the assessee is allowed for statistical purposes.
Order is pronounced in the open court on 30/ 06/2025