Sai Sanskar Trust Vs CIT (Exemptions) (ITAT Pune)
The Sai Sanskar Trust appealed to the Income Tax Appellate Tribunal (ITAT), Pune, against the Commissioner of Income Tax (Exemptions)’s decision to deny their application for regular registration under Section 12AA of the Income Tax Act. The Commissioner’s rejection was based on the trust’s selection of an incorrect section code in Form 10AB during the application process. The trust argued that this was an unintentional error and that all necessary information had been provided. They requested the ITAT to instruct the Commissioner to consider their application under the correct section and to overlook any associated delays. The Commissioner, however, maintained that the rejection was appropriate due to the incorrect filing.
The ITAT considered the arguments from both sides and reviewed the case records, noting a similar precedent from the Surat Bench involving Shree Swaminarayan Gadi Trust Vadtal. In that case, the Tribunal had ruled that an inadvertent mistake in selecting the section code was not a critical flaw and could be rectified. Applying this principle to the current appeal, the Pune Bench concluded that the Commissioner should have given Sai Sanskar Trust an opportunity to correct the error. The ITAT stated that an incorrect section code selection should not automatically disqualify a legitimate registration claim. To ensure fairness, the Tribunal overturned the Commissioner’s order and directed a reconsideration of the case. The Commissioner was instructed to allow the trust to submit the correct application and then decide on its merits after providing a reasonable hearing opportunity. The trust was also directed to actively participate in the proceedings and avoid unnecessary delays. Ultimately, the ITAT allowed the trust’s appeal for statistical purposes.
