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Facts
The assessee, Raghuvanshi Seva Samaj Trust, applied for registration under Section 12AB of the Income Tax Act, 1961. The CIT (Exemptions) rejected the application, stating that the trust, formed on 14-12-2023, had incorrectly applied for renewal of registration under clause (ii) of Section 12A(1)(ac) instead of applying as a newly created trust. The CIT(E) believed it lacked the power to rectify this mistake.
Held
The Tribunal found that the assessee inadvertently selected the wrong section code in Form 10AB and was not given an opportunity of being heard. Citing precedents, the Tribunal held that wrong quoting of the clause is not fatal. The impugned rejection order was set aside, and the matter was remitted back to the CIT(E) to consider the rectified application and grant approval after providing an opportunity of hearing to the assessee.
Key Issues
Whether the CIT (Exemptions) can reject an application for registration under Section 12AB if the assessee inadvertently specifies a wrong sub-clause in Form 10AB, and if the rejection is valid without providing an opportunity for rectification.
Sections Cited
Section 12AB, Section 12A(1)(ac), Section 12A
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, AHMEDABAD “D” BENCH
Before: Shri T.R. Senthil Kumar & Shri Narendra Prasad Sinha
Raghuvanshi Seva Samaj CIT (Exemption), Trust Ahmedabad A-307 Om Aenklev, Vs Kudasan, Gandhinagar Gujarat-382421 PAN: AAFTR1728M (Appellant) (Respondent) Assessee Represented: Shri Mehul Thakkar, A.R. Revenue Represented: Shri Sher Singh, CIT-DR Date of hearing : 22-01-2026 Date of pronouncement : 28-01-2026 आदेश/ORDER PER: T.R. SENTHIL KUMAR, JUDICIAL MEMBER
This appeal is filed by the Assessee as against order dated 24.09.2025 passed by the Commissioner of Income Tax (Exemption), Ahmedabad denying registration under section 12AB of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) on the ground that wrong section code applied by the assessee in Form 10AB.
The Grounds of Appeal
raised by the assessee are as follows:
1. The CIT (Exemptions), Ahmedabad, erred in rejecting the appellant's application for registration under Section 12AB on the ground that the appellant did not meet the pre-requisite for application under clause (ii) of Section 2 Raghuvanshi Seva Samaj Trust Trust Vs. CIT(E)
12A(l)(ac) of the Income Tax Act, 1961. Under the given circumstances, the CIT (Exemptions) ought to have considered the application seeking registration under some other clause of Section 12Aof the Act.
2. The appellant craves leave to add, alter or delete any ground either before or in the course of hearing of the appeal.
Heard rival submissions and perused the material available on record. Ld. Counsel for the assessee submitted before us copy of Form No.10AB filed by the assessee on 29-01-2025, wherein the assessee-trust inadvertently claimed for renewal of registration under clause (ii) of section 12A(1)(ac) of the Act. Whereas Ld CIT[E] held that the assessee being a trust created on 14-12-2023 and not having provisional registration under the new regime and even if it is assumed the assessee has chosen wrong “section code” he has no power to amend the mistake and thereby Ld CIT[E] rejected the application filed by the assessee trust.
From the perusal of Forms filed and the facts of the case, in our considered view, there is merit in claim of the ld. AR that assessee has selected the wrong section code inadvertently while filing the application for registration in Form 10AB. Further, we notice that assessee did not have the opportunity of being heard before ld. CIT(E) due to incorrect course of action advised, which otherwise assessee might have explained the facts to avoid the impugned rejection.
This issue of wrong mentioning of the provisions for registration is no more res integra since various decisions passed by the Co-ordinate Benches, namely, Aatman Foundation vs. CIT(E) 174 taxmann.com 1109 (Ahmedabad-Trib.), Gandhinagar Ayyapa 3 Raghuvanshi Seva Samaj Trust Trust Vs. CIT(E)
Pooja Samiti vs. CIT(E) 174 taxmann.com 901 (Ahmedabad-Trib.) and Rotary Charity Trust vs. CIT(E) 170 taxmann.com 797 (Mumbai-Trib.) held that wrong quoting of the clause in the Application for registration of a trust is not fatal and set aside the rejection order to the file of CIT(E) to consider under the registration under correct provision by accepting in fresh Form 10AB and pass order in accordance with the provisions of law.
5.1. Following the above decisions, we are of the considered view that there is merit in the claim of the Ld. Counsel that the assessee-trust which had selected wrong clause inadvertently while filing Form No.10AB. Therefore, we deem it fit to set aside the impugned order and remit the issue back to the file of Ld.CIT(E) with a direction to consider the rectified application of the assessee and grant approval by giving opportunity of hearing to the assessee-trust and well within the provisions of the law.
In the result, the appeal filed by the assessee is allowed for statistical purposes.