Alloy Steel Producers Association of India Vs CIT (Exemptions) (ITAT Mumbai)
The assessee appealed against the order of the Commissioner of Income Tax (Exemptions) rejecting its application for registration under Section 12AB(1)(b)(ii) of the Income-tax Act, 1961. The rejection was based solely on the assessee selecting Section 12A(1)(ac)(iii) instead of Section 12A(1)(ac)(ii) while filing Form No. 10AB.
The assessee had filed Form No. 10AB on 24.09.2025 seeking registration under Section 12AB. During examination, the CIT(E) noted that the assessee had already been granted regular registration under Section 12AB through Form No. 10AC dated 28.05.2021, valid from AY 2022-23 to AY 2026-27. The CIT(E) held that the application for renewal ought to have been filed under Section 12A(1)(ac)(ii), whereas the assessee had selected Section 12A(1)(ac)(iii), which applies to conversion of provisional registration into regular registration. On that basis, the application was rejected, while observing that the existing registration would continue to remain valid and that the assessee could pursue remedies available under the Act.
Before the Tribunal, the assessee submitted that the incorrect selection of the statutory provision was an inadvertent typographical error and that it had always intended to seek renewal under Section 12A(1)(ac)(ii). It contended that a technical error could not be the sole ground for denial of a substantive statutory benefit. The assessee further submitted that no show cause notice proposing rejection on this ground had been issued and that no opportunity had been provided to explain or rectify the mistake, resulting in violation of the principles of natural justice.
