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Facts
The assessee-trust, holding provisional registration under Section 12A, applied for final registration under Section 12A and approval under Section 80G. The CIT(E) rejected these applications, citing incorrect statutory provision mentioned by the assessee and the applications being time-barred. The assessee had mistakenly cited Section 12A(1)(ac)(ii) instead of Section 12A(1)(ac)(iii).
Held
The Tribunal acknowledged widespread confusion surrounding these registration provisions, treated the assessee's mistake as clerical, and condoned the delay in filing. It directed the CIT(E) to treat the applications under the correct provisions and decide them on merits. This principle also applied to the 80G application.
Key Issues
Whether the rejection of applications for final/regular registration under Section 12A and approval under Section 80G(5) was justified, given a clerical error in section citation and delay in submission.
Sections Cited
Section 12A, Section 80G(5), Income Tax Act, 1961
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Income Tax Appellate Tribunal, “B” BENCH, AHMEDABAD
Before: Shri Sanjay Garg & Annapurna Gupta
आदेश/O R D E R Per Sanjay Garg, Judicial Member:
The present two appeals have been preferred by the assessee-trust against the separate orders of the Learned Commissioner of Income Tax (Exemption), Ahmedabad [hereinafter referred to as ‘CIT(E)’], dated 01/12/2025 & 01/12/2025, assailing the rejection of its applications moved for final/regular registration u/s.12A and 80G of the Income Tax Act, 1961 (for short “the Act”) respectively. First, we take up assessee’s appeal in as the lead case for the purpose of narration of facts.
& 21/Ahd/2026 Mevad Vayad Rajpur Seva Sanstha vs. CIT(E)
The assessee was granted provisional registration u/s 12A of the Act under sub-clause (vi) of clause (ac) of sub-section (1) of Section 12A of the Act on 23/12/2022 upto AY 2025-26, i.e. upto 31/03/2025. The assessee was supposed to apply for final/regular registration under sub-clause (iii) of clause (ac) of sub-section (1) of Section 12A of the Act, within six months of commencement of its activities or atleast six months prior to expiry of the period of provisional registration, whichever is earlier. The assessee applied for final/regular registration on 15/04/2025, however, committed a mistake in mentioning the correct section. The assessee mentioned u/s. 12A(1)(ac)(ii) of the Act instead of mentioning u/s.12A(1)(ac)(iii) of the Act.
The Ld. CIT(E) dismissed the application of the assessee observing that, firstly, the same was filed under the wrong provision and, secondly, being time-barred as the assessee-trust was supposed to apply for final/regular registration as per the provisions of section 12A(1)(ac)(iii) of the Act, i.e. within six months of the commencement of its activities or before expiry of six months of its provisional registration, whichever is earlier. The Ld. CIT(E), while dismissing the said application with observing next due and has given the liberty to the assessee to file the application mentioning the correct provisions/clause and also to move an application for condonation of delay.
We note that there remained a lot of confusion about the interpretation of the relevant provisions regarding the registration u/s 12A and approval & 21/Ahd/2026 Mevad Vayad Rajpur Seva Sanstha vs. CIT(E)
3 u/s.80 of the Act of the charitable organisations. Even the CBDT has to issue circulars/clarifications time and again and even the time-limit for applying for provisional/regular registration has been extended from time to time by the CBDT. In this case, though the assessee was supposed to apply under sub-clause (iii) of clause (ac) of sub-section (1) of section 12A of the Act, however, it mistakenly applied under sub-clause (ii) of clause (ac) of sub- section (1) of section 12A of the Act. However, all the facts were before the Ld. CIT(E) and the Ld. CIT(E) was very well aware that the assessee was originally granted provisional registration under sub-clause (iv) of clause (ac) of sub-section (1) of section 12A of the Act and the assessee, in fact, had sought regular registration under sub-clause (iii) of clause (ac) of sub-section (1) of section 12A of the Act. The Ld.CIT(E), under the circumstances, was supposed to treat the said application under the relevant clause (iii) and proceed accordingly as it was just a clerical mistake while picking up the relevant clause at the time of submission of the online application Form 10AB. We accordingly, direct the Ld. CIT(E) to treat the application of the assessee under the relevant sub-clause (iii) of clause (ac) of sub-section (1) of section 12A of the Act.
The Ld. Counsel for the assessee has submitted that assessee-trust has been doing its charitable activities and that the delay in filing the application for regular registration has occurred due to oversight and due to the confusion in interpretation of the relevant provisions. As observed above, that the confusion regarding interpretation of relevant provisions has not only been among the charitable organisations, income-tax practitioners but also among the Income-tax authorities and, therefore, under the circumstances, in our view, the delay in filing the present application before & 21/Ahd/2026 Mevad Vayad Rajpur Seva Sanstha vs. CIT(E)
4 the Ld. CIT(E) for regular registration should be condoned. We order accordingly.
In view of our above discussion, the Ld. CIT(E) is directed to treat the application filed by the assessee under relevant provisions as applicable to the assessee for seeking final/regular approval after the grant of provisional approval, the delay in filing the said application, if any, before the Ld. CIT(E) is hereby condoned and the Ld. CIT(E) is directed to consider the application of the assessee on merits and grant the registration if so otherwise admissible to the assessee-trust.
With the above observations, the appeal of the assessee is treated as allowed for statistical purposes.
The facts and issue involved in the present appeal are also identical except that the present case is relating to the non-grant of approval u/s 80G(5) of the Act.
Our observation made above, will mutatis mutandis apply to this appeal 9. also and the ld. CIT(E) is, accordingly, directed to treat the application of the assessee under the relevant provisions as applicable to the assessee-trust and decide the application of the assessee on merits irrespective of any delay in filing such application before him, as the same stood condoned by this Tribunal.
& 21/Ahd/2026 Mevad Vayad Rajpur Seva Sanstha vs. CIT(E)
in the result, both the appeals of the assessee-trust are treated as allowed for statistical purposes.
Order pronounced in the Open Court on 18 /02/2026.