Swaminarayan Gadi Trust Vs CIT (Exemptions) (ITAT Surat)
ITAT Surat reviewed appeals filed by Swaminarayan Gadi Trust against the rejection of its applications for tax exemption under Sections 12A/12AB and 80G(5) of the Income Tax Act, 1961. The trust had inadvertently selected incorrect sub-clauses while filing Form 10AB for registration under Section 12A/12AB and approval under Section 80G(5). Despite explaining the clerical mistake, the Commissioner of Income Tax (Exemptions) [CIT(E)] rejected the applications, citing a lack of authority to amend or correct the filed forms. The trust contended that it met all other eligibility criteria and requested the tribunal to allow rectification of the errors rather than dismissing its claims on technical grounds.
The ITAT found merit in the trust’s arguments, emphasizing that the error was a minor, non-substantive mistake. It ruled that the CIT(E) should have considered the applications on their merits rather than rejecting them solely due to incorrect sub-clause selection. The tribunal referenced Circular No. 7/2024 issued by the CBDT, which extended the deadline for filing Form 10AB applications until June 30, 2024, allowing rectifications in similar cases. Consequently, ITAT set aside the CIT(E)’s orders and directed reconsideration of the applications under the correct sub-clauses, with an opportunity for the trust to present its case. The tribunal also instructed the trust to ensure timely compliance with tax procedures moving forward.
