KALAIMAGL EDUCATIONAL CHARITABLE TRUST,NAMAKKAL vs. CIT EXEMPTIONS, CHENNAI

Aggrieved by rejection of an application filed in Form No.10AB seeking registration under clause (ii) of first proviso to Sec. 80G(5) vide impugned order dated 07.03.2024, the assessee is in further appeal before us. Upon perusal of para-4.1 of impugned order, it could be seen that the application has been rejected in view of the fact that the assessee was having provisional registration and it had filed application under section 80G(5)(ii) whereas it ought to have applied under clause (iii) which is applicable for provisionally registered entity. Aggrieved, the assessee is in further appeal before us.

The Ld. AR has submitted that, by inadvertent mistake, the applicable clause was picked as clause (ii) instead of clause (iii). The Ld. AR, therefore, submitted that the application may be considered under correct clause (iii). 3. We are of the considered opinion that the application ought not to be rejected on mere technical grounds. The wrong selection of clause may be due to an inadvertent error and the same may be in view of the fact that new regime of registration of trust was brought in place very recently. The applicant ought to have been granted an opportunity to rectify the error. Therefore, we direct Ld. CIT(E) to grant an opportunity to the assessee to rectify the mistake and thereafter, proceed for disposal of application on merits after affording reasonable opportunity of hearing to the assessee. 4. The appeal stand allowed for statistical purposes. Order pronounced on 3rd July, 2024