IIITB Innovation Centre Vs CIT (ITAT Bangalore)
Wrong Code in Form 10AB Cannot Defeat U/s 80G Registration: ITAT Restores Application
.The Bangalore ITAT held that an application for approval under section 80G cannot be rejected merely because the applicant selected an incorrect code in Form 10AB, without first being given an opportunity to rectify the mistake. The Tribunal restored the matter to the CIT(Exemptions) for fresh consideration.
In this case, IIITB Innovation Centre had applied for 80G recognition through Form 10AB. The CIT(Exemptions) rejected the application on the ground that the assessee had selected the wrong section code while filing the form. According to the CIT(E), the assessee should have filed the application under a different clause of section 80G, considering its earlier provisional registration status.
Before the Tribunal, the assessee argued that even if there was a technical mistake in selecting the code, the CIT(E) ought to have granted an opportunity to correct the application or explain the position before rejecting it outright. The Tribunal accepted this contention and observed that the principles of natural justice required the authority to provide an opportunity to rectify the defect or issue a show-cause notice before passing an adverse order.
The Tribunal held that rejection of the application without affording such an opportunity was unjustified. It therefore set aside the order and directed the assessee to file a corrected Form 10AB with the proper code. The CIT(E) was directed to examine the application afresh on merits and, after carrying out necessary enquiries, grant approval if the statutory conditions are satisfied.
FULL TEXT OF THE ORDER OF ITAT BANGALORE
