Bombay East Rotary Charitable Trust Vs ITO (ITAT Mumbai)
Mistaken 80G Application Instead of 12A- ITAT Mumbai Gives Relief to Rotary Trust – Delay in 12A Re-Registration to be Condoned- Exemption u/s 11 Cannot Be Denied for Bona Fide Error in Form Filing:
Bombay East Rotary Charitable Trust, created in 1962 with the object of providing medical services at concessional rates to the poor, had been registered u/s 12A since 1974. Due to the 2021 amendments mandating re-registration, it was required to apply afresh in Form 10A to continue exemption u/s 11. However, while filing, the Trust inadvertently clicked on section 80G instead of section 12A & obtained approval only u/s 80G via Form 10AC dated 24.09.2021 (valid AY 2022-23 to 2026-27). Believing its 12A registration continued, the Trust claimed exemption u/s 11 in AY 2022-23 return.
CPC, Bengaluru processed the return u/s 143(1) & disallowed the entire application of income (₹1.07 crore), capital expenditure (₹14.59 lakh), statutory accumulation of 15% (₹23.52 lakh), & option u/s 11(1) (₹11.56 lakh), taxing total income at ₹1.56 crore. CIT(A) confirmed denial, noting no valid 12AB registration existed for AY 2022-23.
Before ITAT, the Trust submitted that the lapse was a bona fide error, as it mistakenly applied under 80G instead of 12A. It later filed Form 10A on 26.03.2025 & obtained provisional registration u/s 12A(1)(ac) effective from 02.04.2025 (AY 2025-26 onwards). It also filed petition for condonation of delay seeking continuity of registration from AY 2022-23.
