Case Law Details
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
This appeal is filed by IIITB INNOVATION CENTRE [the Assessee] against the order of Ld. CIT(Exemptions) dated 29-Dec-2025 for the Assessment Year 2025-26 rejecting the application made by the assessee for recognition under section 80 G of the Income Tax Act, 1961 [the Act] wherein the learned CIT appeal held as under:-
2. On verification of the application in Form No.10AB filed on 20-05-2025 for registration u/s.80G of the Income tax Act 1961, it is seen that, the trust was supposed to file application in Form No.10AB under clause (iii) of proviso to sub-section (5) of section 80G since, trust has obtained Provisional Registration u/s.80G vide Form No.10AC From 2022-23 to AY 2024-25. However, the application is filed in Form No.10AB under clause (iv)(B) of first proviso to sub-section (5) of section 80G. Assessee had selected the wrong section code while applying Form 10AB for registration u/s. 80G of the Income Tax Act, 1961. Hence, application in Form 10AB for 80G dated 20-05-2025 is rejected.
3. The assessee is aggrieved with the above order wherein just because of the reason that assessee has mentioned the wrong section code while applying form No. 10 AB for registration under section 80 G of the Act, the application of the assessee was dismissed without granting assessee an opportunity of hearing or allowing an opportunity to rectify the application.
4. On appeal before us the ld. AR vehemently submitted that the learned CIT (Exemption) is incorrect in holding that assessee has made a selection of wrong section code while applying form No. 10 AB for registration under section 80 G of the Act. In the circumstances the learned CIT – A is duty-bound to give assessee an opportunity of hearing or an opportunity to rectify the above mistake. The learned CIT – A has therefore exceeded his jurisdiction and has dismissed the application of the assessee.
5. The learned CIT DR, Mr Shivananda Kalakeri supports that the assessee has filed the application for recognition under section 80 G of the Act by specifying the wrong code, it is the duty of the assessee to file a correct application. Even otherwise he submitted that if the assessee can file the correct application, the application for recognition under section 80 G of the Act can be considered on merits.
6. We have carefully considered the rival contention and find that the application made by the assessee in form No. 10 AB filed on 20.5.2025 under section 80G of the Act was filed under wrong code and therefore the CIT (Exemption) dismissed the appeal of the assessee. We find that the principles of the natural justice demands that assessee should have been given an opportunity either to rectify or to give a show cause at least that why the application made by the assessee should not be dismissed on this count. Without carrying out this exercise the CIT (Exemption) is not justified in rejecting the application of the assessee.
7. In view of the above facts, we restore the appeal of the assessee back to the file of the CIT (Exemption) and direct the assessee to furnish the corrected application under form No. 10 AB by mentioning the correct code. The CIT (Exemption) is also directed to consider the application of the assessee and then if found in accordance with the law, after making necessary enquiries, grant registration/recognition to the assessee under section 80 G of the Act.
8. In the result appeal filed by the assessee is allowed for statistical purpose.
Order pronounced in the open court on 04th June, 2026.
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