Wrong Clause Selected in Form 10AB is a Curable Defect – ITAT Pune Restores U/s 12AB & 80G Applications of Educational Society

Colours Educational Society Vs CIT (ITAT Pune)

Wrong Clause Selected in Form 10AB is a Curable Defect – ITAT Pune Restores U/s 12AB & 80G Applications of Educational Society

The Pune ITAT held that an inadvertent selection of the wrong clause while filing Form 10AB cannot, by itself, justify rejection of a trust’s registration application. The Tribunal treated the error as a curable defect and restored the matter for fresh consideration.

The assessee society had obtained provisional registration under section 12AB and thereafter applied for regular registration in Form 10AB. However, instead of selecting section 12A(1)(ac)(iii), it mistakenly filed the application under section 12A(1)(ac)(ii). The CIT (Exemption) held that an application filed under one clause could not be treated as an application under another clause and rejected the registration application as non-maintainable without examining the merits. Consequentially, the application for approval under section 80G was also denied.

Before the Tribunal, the assessee explained that the mistake occurred due to an inadvertent error while filing the application without professional assistance and relied on earlier Tribunal decisions where similar mistakes were treated as technical defects.

Accepting the contention, the ITAT observed that the assessee was otherwise required to apply under section 12A(1)(ac)(iii) and the wrong selection of clause was merely a technical error. Following earlier coordinate bench rulings, the Tribunal set aside the CIT(E)’s order and directed him to treat the existing application as one filed under section 12A(1)(ac)(iii) and adjudicate the registration request on merits after granting adequate opportunity to the assessee. Since the 80G approval issue was consequential, it too was remanded for fresh consideration. Both appeals were allowed for statistical purposes.

FULL TEXT OF THE ORDER OF ITAT PUNE

Both the above captioned appeals filed by the assessee are directed against the separate orders dated 02.09.2025 passed by Ld. CIT, Exemption, Pune rejecting the application for registration in Form No.10AB under sub-clause (ii) of clause (ac) of sub-section (1) of section 12A of the IT Act filed on 31.03.2025 and denying the application for approval in Form No.10AB under clause (ii) of first proviso to sub-section (5) of section 80G of the IT Act filed on 31.03.2025.

ITA No.2523/PUN/2025 :

2. Facts of the case, in brief, are that the assessee is a trust applied for registration in Form 10AB u/s 12A(1)(ac)(ii) of the IT Act on 31.03.2025. Ld. CIT, Exemption, Pune found that the application was furnished u/s 12A(1)(ac)(ii) of the IT Act instead of u/s 12A(1)(ac)(i) or 12A(1)(ac)(iii) of the IT Act & therefore Ld. CIT, Exemption, Pune rejected the application for registration by observing as under :-

“4. On verification of the details / documents submitted by the assessee in response to the said notice, various discrepancies were observed. Another notice was then issued to the assessee on 23/07/2025 and the discrepancies were duly communicated to it as reproduced below:

“(i) The present application is filed by you under clause (ii) of section 12A(1)(ac) of the Income Tax Act, 1961. The provisions of clause (ii) of section 12A(1)(ac) are related to application for renewal of regular registration of a trust or institution which is already having regular registration under section 12AB of the Act and the period of said registration is about to expire. However, you have not furnished the copy of regular registration in form No. 10AC under section 12AB read with section 12A(1)(ac)(i) or 12A(1)(ac)(iii) of the Income Tax Act, 1961 but submitted a copy of provisional registration under section 12AB read with section 12A(1)(ac) (vi) of the Income Tax Act, 1961. Therefore, the prerequisite for application under clause (ii) of Section 12A(1)(ac) of the Income Tax Act, 1961 is not fulfilled in this case,”

5. The assessee was requested to furnish the compliance by 31/07/2025. The assessee was also informed that in the event of failure to comply by the due date, the application shall be liable to be rejected. The notice was duly served on the assessee through e-portal and email.

6. On verification of the details / documents submitted by the assessee, it is seen that the assessee has not furnished the copy of REGULAR REGISTRATION in form No.10AC under section 12AB read with section 12A(1)(ac)(i) or 12A(1)(ac) (iii) of the Income Tax Act, 1961 but submitted a copy of PROVISIONAL REGISTRATION under section 12AB read with section 12A(1)(ac) (vi) of the Income Tax Act, 1961.

7. The present application is filed by the assessee under clause (ii) of section 12A(1)(ac) of the Income Tax Act, 1961. The provisions of clause (ii) of section 12A(1)(ac) are related to application for renewal of regular registration of a trust or institution which is already having regular registration under section 12AB of the Act and the period of said registration is about to expire.

8. The assessee was specifically requested vide the initial notice to furnish the copy of order of regular registration under section 12AB of the Income Tax Act, 1961. Such copy is actually required to be furnished along with the application itself under the provisions of Rule 17A(2)(e) of the Income Tax Rules, 1962. The assessee vide its reply dated 11/08/2025 stated that the trust had inadvertently filed the present application under clause (ii) of section 12A(1)(ac) instead of clause (iii) of section 12A(1)(ac). Further, the assessee has requested to consider the present application. However, the request of the assessee to consider the present application under clause (iii) cannot be accepted since the form filed under one clause cannot be considered to be filed under another clause of section 12A(1)(ac) of the I.T. Act, 1961. Therefore, prima-facie it appears that the application is not maintainable.

9. In view of the above, the application filed by the assessee is treated as non-maintainable and hence, ‘rejected’ for statistical purposes without going into the merits of the case and no adverse inference is drawn against the assessee.”

3. It is this order against which the assessee is in appeal before this Tribunal.

4. Ld. AR appearing from the side of the assessee submitted that the rejection order passed by Ld. CIT, Exemption, Pune is unjustified. It was submitted that due to a typographical/inadvertent error the application was filed u/s 12A(1)(ac)(ii), whereas the assessee was required to file application u/s 12A(1)(ac)(iii) of the IT Act. It was further submitted that application was filed by its own without help of any tax professional and due to this the above mistake occurred. Ld. Counsel further submitted that the assessee trust is genuine and was having provisional registration u/s 12A(1)(ac)(vi) of the IT Act. Accordingly, it was prayed before the Bench that mentioning of wrong section code in the application is curable defect and one opportunity may kindly be provided to the assessee trust to explain his case before Ld. CIT, Exemption, Pune. In support of above contention, Ld. AR relied on the decision passed by Co-ordinate Bench of this Tribunal in the case of Shree Swaminarayan Gadi Trust vs. CIT, [2024] 162 taxmann.com 772 (Surat-Trib.) order dated 13.05.2024 wherein under identical situation Tribunal was pleased to allow the appeal of the assessee. Ld. AR further relied on another decision of the Co-ordinate Bench of this Tribunal in the case of Raj Krishan Jain Charitable Trust in ITA No.1553/Del/2024 order dated 05.06.2024, wherein under similar circumstances, the Tribunal was pleased to allow the appeal of the assessee. Accordingly, Ld. AR requested before the Bench to set-aside the order passed by Ld. CIT, Exemption, Pune and further requested to direct Ld. CIT, Exemption, Pune, to consider the application as filed under clause (iii) of section 12A(1)(ac) of the IT Act.

5. Ld. DR appearing for the Revenue relied on the order passed by Ld. CIT, Exemption, Pune and requested to confirm the same.

6. We have heard Ld. Counsels from both the sides and perused the material available on record and also copy of case laws relied on by the assessee. We find that admittedly, the assessee trust was required to file application under clause (iii) of section 12A(1)(ac) of the IT Act but due to inadvertent error the application was filed under clause (ii) of section 12A(1)(ac) of the IT Act and for this reason alone Ld. CIT, Exemption, Pune rejected its application for registration. We find that under identical situations, a Co-ordinate Bench of this Tribunal in the case of Raj Krishan Jain Charitable Trust (supra) allowed the appeal of the assessee by observing as under :-

“9. As contended the appellant has committed a technical mistake in making the application under Section 12A(1)(ac)(ii) instead of clause (iii) of clause (ac) of sub-section (1) of section 12A of the Act. As pointed out the appellant has filed revised form 10AB for seeking registration under the correct provision i.e. Section 12A(1)(ac)(iii) which can also be considered.

10. In consonance with the decision rendered by the co-ordinate Bench, the typographical error deserves to be corrected. Accordingly, the appeal deserves to be allowed and impugned order dated 15.03.2024 of Ld. CIT (E) is liable to be set aside. Hence, the appeal is allowed and we set aside the order of Ld. CIT(E) dated 15-03-2024 and remand the matter back to the file of the CIT(E) for fresh adjudication by considering amended application of the appellant under Section 12A(1)(ac)(iii) of the Act, or he can call for amended application from the appellant.

11. In the result, the appeal filed by the assessee is allowed for statistical purpose.”

7. Respectfully following the above decision passed by the Co-ordinate Bench of this Tribunal (supra), we find force in the arguments of Ld. Counsel of the assessee & considering the totality of facts of the case & in the interest of justice we deem it proper to set-aside the order passed by Ld. CIT, Exemption, Pune and restore the matter back to him with a direction to treat the application already filed by the assessee as under clause (iii) of section 12A(1)(ac) of the IT Act instead of under clause (ii) of section 12A(1)(ac) of the IT Act and decide the same as per fact and law after providing reasonable opportunity of hearing to the assessee. The assessee is also hereby directed to respond to the notices issued by Ld. CIT, Exemption, Pune in this regard and to produce relevant documents/evidences in support of application for registration, otherwise, Ld. CIT, Exemption, Pune shall be at liberty to pass appropriate order as per law. Thus, the grounds of appeal filed by the assessee are allowed for statistical purposes.

8. In the result, the appeal filed by the assessee in ITA no.2523/PUN/2025 is allowed for statistical purposes.

ITA No.2524/PUN/2025 :

9. The instant appeal is against the order passed by Ld. CIT, Exemption, Pune denying grant of approval u/s 80G(5) of the IT Act. Since we have remanded the issue of grant of registration u/s 12A(1)(ac)(iii) to the file of Ld. CIT, Exemption, Pune for de novo adjudication, therefore, in the interest of justice, it would be appropriate to remit the issue of grant of approval u/s 80G(5) as well to the file of Ld. CIT, Exemption, Pune being consequential, for de novo adjudication.

10. In the result, the appeal filed by the assessee in ITA No.2524/PUN/2025 is allowed for statistical purposes.

11. To sum up, both the above captioned appeals filed by the assessee are allowed for statistical purposes.

Order pronounced on this 19^th day of February, 2026.