Al Ameen Residential School Trust Vs CIT (Exemptions) (ITAT Bangalore)
Technical error in section code cannot defeat 12AB registration- Application can’t be rejected for curable mistake: ITAT Bangalore
Assessee is a charitable registered trust applied for permanent registration in form 10AB but inadvertently, quoted the provision as u/s. 12A(1)(ac)(ii) instead of 12A(1)(ac)(iii). CIT(A) without granting an opportunity to the assessee to rectify the said mistake, had rejected the said application
Before the Tribunal , Assessee submitted that there is no iota of doubt about the genuineness & the objects of the trust which are all towards the charitable purposes but only on the technicality,CIT(E) had rejected the said application. Before rejecting the said application, CIT(E) ought to have granted an opportunity to rectify the said defect but without doing so, CIT(E) had rejected the said application which is not correct as per the various decisions of the Hon’ble High Courts as well as the Tribunals.
Tribunal noted that Assessee trust was formed with the object of promoting education & in running educational institutions & therefore the said objects could be termed as charitable activities. The authorities under the Income Tax Act also does not find the trust is not a genuine one & started for the purpose of enjoying the benefits granted under the provisions of the Act. Therefore, it was established by Assessee that the trust is a genuine one & carried out the charitable activities of providing education & establishing educational institutions. In such circumstances, the trust is entitled for registration u/s. 12A . But by mistake, while filing the application through online, the assessee trust had mentioned the section as 12A(1)(ac)(ii) of the Act instead of mentioning the correct provision as 12A(1)(ac)(iii). It is only a technical mistake & that could have been rectified by Assessee on receipt of any intimation received from CIT(A) or CIT(E) could have considered the said application under the correct provision & granted the registration as sought for by Assessee. When the objects of the trust & the genuineness of the trust are not in doubt, the registration sought for by Assessee trust could not be denied solely on technicalities. At the maximum, the mistake committed by Assessee can be termed as a technical mistake & on that basis, the said application could not be rejected.
