Mandava Foundation Vs ITO (ITAT Hyderabad)
ITAT allows rectification of mistake of applying registration in Form 10AB instead of Form 10A
The case of Mandava Foundation versus the Income Tax Officer (ITAT Hyderabad) revolves around a procedural error in the application for registration under the Income Tax Act, 1961. Here’s a detailed summary of the case:
The Mandava Foundation, a trust, filed an appeal against the order dated 28/11/2023 by the Commissioner of Income Tax (Exemption)-Hyderabad (CIT(E)). The foundation had initially obtained registration under section 12A(a) of the Income Tax Act, 1961 (‘the Act’) in 2005. Subsequently, they sought provisional registration under section 12A(1)(ac)(vi) in May 2021 and then applied for regular registration under section 12A(1)(ac)(iii) in May 2023.
However, the CIT(E) rejected their application for regular registration in Form 10AB, citing it as infructuous and barred by limitation. The foundation had mistakenly applied under the wrong section code previously and sought rectification. The Commissioner rejected their plea, arguing that the due date for filing the correct application had passed, and even if it was a genuine mistake, it was not promptly rectified.
The foundation contended that the mistake was inadvertent and should be excused. They argued that they didn’t stand to benefit from the error and requested the CIT(E) to grant regular registration.
