Kasi Visvanathar Koviloor Foundation Vs DCIT/ACIT (E) (ITAT Chennai)
Inadvertent Error in Form 10AB cannot change Charitable Nature of Section 8 Company – Wrong Classification as Religious-cum-Charitable set aside; 80G Approval to be re-examined
Assessee is a Section 8 Company incorporated in November 2023 with charitable objects such as running schools, providing food for the needy, & medical relief. It had obtained provisional registration u/s 12AB & 80G for three years (AYs 2024-25 to 2026-27). Later, it applied for regular registration u/s 12AB & approval u/s 80G through Form 10AB.
By mistake, in Column 3 of Form 10AB, Assessee selected the option “religious-cum-charitable” instead of “charitable”. Based on this, CIT(E) granted registration u/s 12AB but classified the institution as “religious-cum-charitable” &, consequently, denied 80G approval, since religious-cum-charitable entities are ineligible. Assessee challenged both orders before the Tribunal.
Assessee argued that its Memorandum of Association (MoA) & Articles of Association (AoA) contained no religious objects whatsoever. Its work was purely charitable. The wrong description in Form 10AB was an inadvertent mistake due to portal complexities. It relied on precedents such as Shri Balkrishna Shudhhadwait Sthanik Mahasabha v. CIT (E) (2023) & Arya Samaj Safdarjung Enclave v. CIT (Delhi ITAT), where inadvertent mistakes in forms were held not to defeat substantive rights.
