Dattabal Mission Devine Vs CIT (ITAT Pune)
Pune ITAT Holds Wrong Selection of Section in Form 10AB Is a Curable Technical Defect; Trust Gets Fresh Opportunity for 12A and 80G Registration
The Pune ITAT held that an inadvertent selection of the wrong sub-clause in Form 10AB while applying for regular registration under section 12A is merely a technical and curable defect and cannot be the sole basis for rejecting the application. The Tribunal observed that the trust, formed for imparting education, had mistakenly applied under an incorrect provision, leading the CIT (Exemptions) to reject the application on the ground that the chosen sub-clause was inapplicable. Relying on the co-ordinate bench decision in Shree Swaminarayan Gadi Trust Vadtal, the Tribunal held that selection of an incorrect section code does not disentitle an applicant from its substantive claim, and the CIT(E) ought to have afforded an opportunity to rectify the defect instead of rejecting the application outright. Accordingly, the Tribunal set aside the impugned order and restored the matter to the file of the CIT (Exemptions) with directions to permit the assessee to file the correct application, examine the case afresh on merits, and pass a fresh order after granting adequate opportunity of hearing. Since the denial of approval under section 80G(5) was consequential to the rejection of registration under section 12A, that issue was also remanded for fresh adjudication.
