Vidya Jyoti Charitable Trust Vs CIT (Exemptions) (ITAT Chandigarh)
The Income Tax Appellate Tribunal (ITAT), Chandigarh, disposed of two appeals filed by the assessee against the order of the Commissioner of Income Tax (Exemptions) dated 11.03.2026 concerning registration under Section 12AB and approval under Section 80G of the Income Tax Act, 1961.
The assessee challenged the rejection of approval under Section 80G, contending that it had been rejected on the technical ground that the application was filed under the wrong clause. Before the Tribunal, the assessee also submitted that the CIT(E) had passed the order without affording a reasonable opportunity of being heard and requested another opportunity. The Departmental Representative opposed the grant of such opportunity.
The Tribunal observed that the application for registration under Section 12AB had been rejected primarily because it was filed under an incorrect clause of the prescribed form. It noted that the rejection was not based on examination of the assessee’s eligibility on merits but on a procedural defect. The Tribunal held that a curable procedural or technical defect, such as mentioning an incorrect clause in the prescribed application, should not be the sole basis for rejecting an application under Section 12AB. It further observed that where such a defect is curable and does not go to the root of the matter, the competent authority should provide an opportunity to rectify the defect or treat the application under the appropriate clause, if permissible under law.
