Raj Krishan Jain Charitable Trust Vs CIT (Exemption) (ITAT Delhi)
The case involves the Raj Krishan Jain Charitable Trust’s appeal against the CIT(Exemption) Delhi’s order rejecting its application for registration under Section 12A of the Income Tax Act. The trust had applied for registration in Form 10AB but mistakenly selected Section 12A(1)(ac)(ii) instead of 12A(1)(ac)(iii). Despite submitting a revised form correcting the error, the CIT(E) rejected the application on technical grounds, stating that the ITBA system did not allow rectification. The appellant argued that the rejection was unjustified, as the trust had been registered under Section 12A since 1975 and had rectified the mistake promptly. Further, similar errors in other cases had been condoned, highlighting inconsistency in CIT(E)’s approach.
The ITAT Delhi reviewed the matter and referred to a similar case adjudicated by the ITAT Chennai, where a technical mistake in selecting the wrong sub-clause had been condoned. The tribunal found that the trust had rectified its application and met all conditions for registration. It ruled that the typographical error should not lead to rejection and set aside the CIT(E)’s order. The case was remanded for fresh adjudication, directing CIT(E) to consider the revised application or allow the trust to submit a corrected one. This decision reinforces the principle that procedural errors should not hinder substantive claims if compliance is otherwise met.
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