MAGIC PATHSHALA,NEW DELHI vs. CIT (EXEMPTION), NEW DELHI

On the facts and circumstances of the case, the Ld. CIT(E) has failed to appreciate that the filing of online application for grant of provisional registration under incorrect provision (i.e, clause (i) of first proviso to Section 80G(5)) was only due to technical glitch on the income tax portal (i.e. www.incometax.gov.in), as the correct clause (i.e. clause (iv) of first proviso to Section 80G(5)) was not available for selection in the dropdown list of Form 10A.

On the facts and circumstances of the case, the Ld. CIT(E) has erred both on facts and in law in rejecting the application for registration under Section 80G of the Act, merely on the ground that a procedural deficiency existed in the application form filed for provisional registration and the Appellant had neither the intention nor the scope to derive any benefit out of obtaining provisional registration under wrong clause.

On the facts and circumstances of the case, the Ld. CIT(E) has grossly erred in rejecting the application for registration under Section 80G of the Act, completely ignoring the fact that the Ld. CIT(E) has not raised any doubt regarding genuineness of charitable activities undertaken by the Trust, as registration under Section 12A of the Act has been duly granted to the Appellant by the Ld. CIT(E) itself.

On the facts and circumstances of the case, the Ld. CIT(E) has grossly erred in rejecting the application for registration under Section 80G of the Act, despite there being no violation of conditions laid down under Second proviso to Section 80G (5) read with clauses (i) to (v) of sub-Section (5) of Section 80G of the Act.

WITHOUT PREJUDICE TO THE ABOVE, the Ld. CIT(E) has failed to appreciate that a mere inadvertent mistake, while filing the online application for grant of provisional registration does not disqualify the Appellant from being granted regular registration us 80G of the Act, when the Ld. CIT(E) is satisfied with the genuineness of activities of the Trust, having granted registration u/s 12A.

The Appellant craves leave to add, alter, amend, and/or modify any of the grounds of appeal before or at any time during the hearing. Any consequential relief, to which the Appellant may be entitled under the law in pursuance of the aforesaid grounds of appeal, or otherwise, may thus be granted.”

We have heard both sides and perused the materials available on record. We find that the adverse inference against assessee has been taken solely on account of filing an application in wrong field code. In our considered view, the assessee may be permitted to correct the mistake. Hence, we remit the issue to the file of the Ld. CIT(E). The Ld. CIT(E) will grant opportunity to assessee to correct the mistake and thereafter decided as per law.