Bharat Sevashram Sangha Vs CIT (Exemptions) (ITAT Mumbai)
Clerical Error in Form 10AB Not Fatal – ITAT Mumbai Restores 12AB & 80G Applications
The Mumbai Bench of the ITAT allowed the assessee-trust’s appeals for statistical purposes and set aside the orders of the CIT(E) rejecting registration under section 12AB and approval under section 80G. The rejection was based solely on the ground that, while filing Form 10AB, the trust had inadvertently selected the wrong clause—section 12A(1)(ac)(iv) instead of section 12A(1)(ac)(iii).
The Tribunal held that such an error is procedural and clerical, and not fatal to the application. Relying on consistent coordinate bench decisions, including Shree Swaminarayan Gadi Trust, the ITAT observed that the CIT(E) ought to have treated the application under the correct clause and examined it on merits, rather than rejecting it on technical grounds by claiming lack of power to rectify.
Since registration under section 12AB is a pre-condition for approval under section 80G, the rejection of the 80G application was also set aside. Both matters were restored to the file of the CIT(E) with directions to reconsider the applications in accordance with law, after granting due opportunity to the assessee to substantiate its objects, activities, and statutory compliances. Accordingly, both appeals were allowed for statistical purposes
FULL TEXT OF THE ORDER OF ITAT MUMBAI
