Balaji Gau Sanrakshan Sansthan Vs CIT (Exemption) (ITAT Indore)
Wrong Clause Selection in Form 10AB Is a Curable Technical Error — ITAT Restores 12AB & 80G Applications
The Indore Bench of the Income Tax Appellate Tribunal set aside the rejection of final registration under section 12AB and approval under section 80G, holding that inadvertent selection of an incorrect clause in Form 10AB is a technical, curable defect.
The assessee trust’s applications were rejected by the CIT(E) on the ground that it had applied under an inapplicable clause—section 12A(1)(ac)(vi)(B)—despite having claimed exemptions in earlier years, rendering it ineligible under that clause. Before the Tribunal, the assessee candidly admitted the error and explained that the wrong clause was selected due to confusion arising from the new electronic registration regime introduced by TOLA, 2020.
The ITAT observed that the revamped framework under section 12A(1)(ac) contains multiple clauses catering to different factual situations and that inadvertent errors in clause selection have occurred nationwide. Relying on consistent Tribunal precedents adopting a pragmatic approach in similar circumstances, the Bench held that substantive rights should not be defeated by technical lapses. Accordingly, the matter was remanded to the CIT(E) with directions to adjudicate afresh and grant final registration under the correct clause, if otherwise eligible. Consequentially, the rejection of approval under section 80G was also remanded for fresh consideration.
FULL TEXT OF THE ORDER OF ITAT INDORE
