Jayalakshmi Memorial Charitable Trust Vs CIT (ITAT Chennai)
Technical Mistake in Form Filing Not Fatal: Tribunal Grants Relief to Charitable Trust
Jayalakshmi Memorial Charitable Trust, registered u/s 12AA & enjoying approval u/s 80G since 24.11.2008, filed appeals against CIT(E)’s rejection orders dated 08.02.2022 & 19.02.2025 concerning its 80G recognition.
The trust had inadvertently filed application in Form 10A under clause (iv) of the first proviso to section 80G(5) on 30.01.2022, instead of under clause (i). Consequently, CPC granted only provisional recognition u/s 80G from 08.02.2022 to AY 2024-25, instead of 5 years. Later, on 28.08.2024, the trust filed Form 10AB under clause (iii) to extend recognition, but CIT(E) rejected it as belated since the due date was 30.06.2024.
Before Tribunal, Assessee explained that it was an old trust eligible under clause (i) for 5 years’ registration & that the mistake was only due to wrong dropdown selection in the e-filing portal. It was argued that substantive right should not be denied for a technical error. Reliance was placed on Tribunal rulings in Kaakkum Karangal & Mahatma Eye Vision & Research Institute.
Tribunal held that since trust already had 80G registration prior to 01.04.2021, it should have been granted recognition under clause (i) for 5 years. Filing under clause (iv) was a bona fide mistake, which cannot deny statutory benefit. Accordingly, Tribunal directed CIT(E)/CPC to treat application dated 30.01.2022 as filed under clause (i) & grant recognition u/s 80G(5) for AYs 2022-23 to 2026-27. Consequently, CIT(E)’s order dated 19.02.2025 (rejecting Form 10AB under clause (iii)) was also set aside as infructuous.
