Case Law Details
Shyam Mitra Vs CIT (Exemption) (ITAT Nagpur)
The Income Tax Appellate Tribunal (ITAT), Nagpur, allowed the appeal of a charitable institution against the order of the Commissioner of Income Tax (Exemption), Pune, rejecting its application for registration under Section 12AB of the Income-tax Act, 1961. The Commissioner had rejected the application on the ground that the assessee had filed Form 10AB by selecting Section 12A(1)(ac)(ii) instead of the applicable Section 12A(1)(ac)(vi)(B), treating the application as non-maintainable.
The assessee submitted that it was incorporated on 31.03.1983, registered under the Bombay Public Trust Act, 1950, and had been carrying out charitable activities since its inception. It had never been granted registration under Sections 12A or 12AA earlier. According to the assessee, the incorrect selection of the section code in Form 10AB was an inadvertent and bona fide clerical error committed while filing the online application. The institution stated that it otherwise satisfied all the conditions for registration and had responded to all notices issued by the Commissioner by furnishing the required documents and explanations.
The Tribunal noted that the application filed on 06.03.2025 was accompanied by the trust registration certificate, financial statements for Assessment Years 2022-23 to 2024-25, and the trust deed setting out the charitable objects. These documents clearly indicated that the trust had already commenced charitable activities and that the appropriate provision for seeking registration was Section 12A(1)(ac)(vi)(B). The Tribunal observed that the documentary evidence itself showed that only the section code had been incorrectly selected in the online application.
The Tribunal further observed that the Commissioner had issued notices on 24.04.2025, 18.06.2025, and 23.07.2025, to which the assessee furnished complete details. The documents submitted established the genuineness of the trust’s charitable activities. The Commissioner did not point out any discrepancy, infirmity, or defect in the documentary evidence and did not dispute the genuineness of the activities. The Tribunal noted that the assessee had specifically explained in its written submissions dated 26.07.2025 that the incorrect selection of the sub-clause was a clerical mistake and requested that the application be considered under the appropriate provision.
According to the Tribunal, a mere technical error in mentioning the section code in Form 10AB could not be treated as a fatal defect warranting rejection of the registration application, particularly when all supporting documents established the charitable nature of the trust and compliance with the statutory requirements. The Tribunal held that the Commissioner ought not to have rejected the application solely on account of the incorrect section code.
The Tribunal also relied on its earlier decision in Gospel India Ministries, wherein it was held that quoting a wrong provision cannot defeat the grant of a beneficial statutory registration when the genuineness of the trust’s objects and activities is not in dispute. Following the same reasoning, the Tribunal concluded that, in the absence of any material discrepancy or defect in the evidence placed on record, the assessee was entitled to registration under Section 12AB. Accordingly, the impugned order was set aside, the registration sought by the assessee was directed to be granted, and the appeal was allowed.
FULL TEXT OF THE ORDER OF ITAT NAGPUR
This appeal filed by the assessee is directed against the order of Commissioner of Income Tax (Exemption), Pune, (for short, “CIT(E)”), dated 30/08/2025; whereby application for grant of regular registration u/s. 12A has been rejected.
2. Assessee has raised the following grounds of appeal:
“1. The learned CIT (Exemption), Pune erred in rejecting the application filed for grant of registration u/s 12AB of Income Tax Act, 1961.
2. The order passed by CIT (Exemption), Pune rejecting the application for registration u/s 12AB without considering the compliances made in response to notice issued by e-mail on 23/07/205 is illegal, invalid and bad in law.
3 .The learned CIT (Exemption) ought to have granted registration u/s 12AB of Income Tax Act, 1961 on the basis of facts and evidence on record.
4. Order passed by CIT (Exemption) rejecting the registration u/s 12AB of Income Tax Act, 1961 without considering the reply of assessee is in violation of principles of natural justice and is not in accordance with law.
5. Any other ground shall be prayed at the time of hearing.”
3. Facts of the case in brief are that assessee is a charitable institution, filed in Form 10AB u/s. 12A(1)(ac)(ii) on 06.03.2025 for grant of registration u/s 12AB of the Act. The assessee charitable institution had never been granted registration u/s. 12A/12AA of the Act in the past. Assessee has been carrying on its charitable activities since its inception. The assessee was required to apply for registration under section 12AB by filing Form No. 10AB u/s. 12A(1)(ac)(vi)(B). However, while filing online application, section code 12A(1)(ac)(ii) was selected in Form No. 10AB instead of the correct section code 12A(1)(ac)(vi)(B). Ld.CIT(E) has observed that assessee has inadvertently filed the present application and treated the application as non-maintainable and hence rejected.
4. Being aggrieved by the order of Ld. CIT (E) rejecting the application for registration u/s. 12AB of the Act, assessee is in appeal before this Tribunal.
5. Learned Counsel for assessee furnished gist of submission which is as under:
a. Assessee charitable institution is incorporated on 31.03.1983. Assessee charitable institution is registered Bombay Public Trust Act, 1950 vide registration No. F-3566 (Nagpur). The assessee charitable institution is set-up to promote various charitable activities such as relief to poor, medical relief, upliftment for downtrodden, economically weaker and backward sections of the society.
b. Assessee charitable institution has filed Form 10AB under section 12A(1)(ac)(ii) on 06.03.2025 for grant of registration u/s 12AB of Income Tax Act, 1961. (P 1 – 11)
c. The assessee charitable institution had never been granted registration under section 12A/12AA of the Income-tax Act, 1961 in the past. The assessee has been carrying on its charitable activities since its incorporation. The assessee was required to apply for registration under section 12AB by filing Form No. 10AB under section code 12A(1)(ac)(vi)(B). However, due to an inadvertent and bona fide clerical error on the part of the accountant while filing the online application, section code 12A(1)(ac)(ii) was mistakenly selected in Form No. 10AB instead of the correct section code 12A(1)(ac)(vi)(B). The said error was purely technical in nature and was neither deliberate nor intended to derive any undue benefit. The assessee otherwise fulfilled all the conditions prescribed for seeking provisional registration under the provision of section 12A(1)(ac)(vi)(B).
d. The assessee has made submission in response to various notices issued dated 24.04.205, 18.06.2025 and 23.07.2025. (P 12 – 282).
e. The application filed in Form 10AB by assessee is treated as non-maintainable and hence rejected by CIT Exemption, Pune vide order in Form 10AD dated 30.08.2025.
f. The CIT Exemption, Pune has not pointed any defect in submission made by the assessee other than section code error. The learned CIT Exemption, Pune on the basis of submission made ought to have granted registration u/s 12A(1)(ac)(vi)(B) of Income Tax Act, 1961.
g. Reliance on :
Decision of Hon’ble ITAT Nagpur bench, Nagpur in ITA No.267 and 563/Nag/2024 in case of Gospel India Ministries vide order dated 27.01.2025.
6. Ld. Departmental Representative (DR) heavily placed reliance on the detailed reasoning given in the order of Ld.CIT(E). It is submitted that rejection of application for registration u/s 12AB is just and fair based on facts and evidence on record. It is submitted that there is no merit in the appeal of the assessee and therefore same be dismissed.
7. We have heard rival contentions of both the parties and perused the material available on record. Application was submitted for grant of registration u/s 12A(1)(ac)(ii) of the Act. The application submitted in Form 10AB on 06/03/2025 was accompanied by documentary evidence being registration certificate dated 31.03.1983, financial accounts for three Assessment Years from 2022-23 to 2024-25, copy of Trust Deed indicating objects of the Trust. Documentary evidence submitted along with application u/s 10AB of the Act itself revealed that mention of section in Form 10AB, as to clause, under which registration is sought has not been correctly chosen. On the basis of facts and evidence on record, financial statement and registration certificate, it is clearly indicated that activities of trust have already commenced and therefore application was correctly required to be submitted u/s 12A(1)(ac)(vi)(B).
8. The Ld. CIT (E) while processing application had called for various details from assessee by issue of notices on 24.04.2025, 18.06.2025 & 23.07.2025. In compliance to the notices issued, complete details were submitted. Documentary evidence established genuineness of activities carried out by the assessee-trust. Such documents are placed at page Nos. 29 – 272 of the paper book. The documents submitted are not faulted or invited any adverse attention in the course of proceedings u/s 12AB of the Act for grant of registration. In the case of assessee notice of hearing was issued on 23.07.2025 and the assessee was required to furnish copy of regular registration u/s.12AB in Form 10AC/10AD. The facts as to regular registration u/s 12AB and mentioning of wrong section code was explained in detail in its written submissions uploaded on 26.07.2025. At para 5 of the order u/s.12AB discrepancies communicated to the assessee in respect to application of registration of trust u/s 12AB of the Act are noted, as details not submitted and to submit copy of regular registration u/s 12AB of the Act. Compliance in respect to the above, was submitted on 26.07.2025. It was explained that mistake in selecting sub-clause in the application for registration is clerical mistake. It was requested to consider application in appropriate clause. Mere mistake in mentioning the section code in Form 10AB could not be considered as fatal to deny provisional registration as applied. Ld.CIT (E) has not pointed any mistake in details submitted. Ld. CIT (E) ought not to have rejected application on account of mere technical mistake in filing section code in Form 10AB.
9. All the documents as placed before us in the form of paper book are considered. Documentary evidence placed on record establishes charitable activity of trust. Facts as noted hereinabove remained uncontroverted. Denial of registration is only because of clerical mistake and not for any material discrepancy found. Registration u/s 12AB of the Act cannot be rejected on mere technicalities.
10. The Coordinate Bench of this Tribunal in the case of Gospel India Ministries in ITA No. 267 & 563/Nag/2024 vide order dated 27/01/2025 has concluded as under:
“10. We have given a dispassionate hearing to the averments before us. It is crystal clear that nowhere the genuineness of objects, activities or non–compliance of any law, material to objects achievement of objects has been painted out by the learned CIT(E). The grounds for rejection are ring fenced and the learned CIT(E) does not have any authority to over step the same. There is no error in claiming exemption under section 11 and 12 of the Act when the trust was armed with provisional registration. Moreover, taxability or otherwise of the income of the assesse would have to be separately considered as per provision of the Act. Quoting a wrong provision if at all so, cannot be held to be fatal to militate against the well–deserved beneficial provision to be extended. Thus, the assessee is entitled to final registration. Accordingly, we set aside the impugned order passed by the learned CIT(E) and direct the authorities below to grant registration keeping in mind the aforesaid findings. Accordingly, all the grounds raised by the assessee are allowed.
11. In the result, appeal by the assessee is allowed.”
Respectfully following the decision of the Coordinate Bench, we are of the considered view that, in the absence of any discrepancy, infirmity, or defect in the documentary evidence placed on record, the registration sought by the assessee deserves to be granted. We do accordingly.
11. In the result, appeal filed by the assessee is allowed.
Order pronounced in open Court on 19.06.2026
Author Bio
