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Judgment
This appeal by the assessee is directed against the order of learned CIT(Exemptions), Delhi dated 12th March, 2026 whereby the application of the assessee in Form 10AB for registration under Section 12A of the Income-tax Act, 1961 (hereinafter referred to as 'the Act') was rejected.
We have heard the arguments of both the sides and have gone through the order of learned CIT(Exemption) passed under Section 12AB(1)(b)(ii)(B) of the Act. Learned Counsel for the assessee stated that the rejection of assessee's application has been made solely on account of technical defect arising out of the inadvertent selection of an incorrect clause while filing Form No.10A. According to him, such a bona-fide and procedural mistake ought not to have defeated a substantive claim for registration, particularly when the assessee is otherwise carrying on genuine charitable and religious activities. He stated that if assessee had originally selected the correct clause viz., Section 12A(1)(ac)(vi) of the Act, CPC would have issued only a provisional registration in Form No.10AC and thereafter assessee is required to file Form No.10AB for regular registration. In support of this, the assessee has relied on the decision of ITAT, Indore Bench in the case of Shree Annapurna Kshetra Maheshwari Mahila Charitable Trust – 2026 (5) TMI 1765, order dated 30th April, 2026 and in particular, he drew our attention to paragraph Nos.7 & 8, which read as under:-
“7.We have carefully considered the rival submissions of both sides. We have also considered the facts of these matters in the light of decision cited before us. We find that the Govt. introduced a new system of granting different types of registrations/approvals in section 12A/12AB and 80G through TOLA w.e.f. 01.04.2021. These different types of registrations/approvals can be broadly referred as ‘provisional’, ‘final’ and ‘renewal’. The provisions introduced by Govt. have multiple clauses/sub clauses and at times taxpayers face difficulties in understanding. Even the seasoned professionals, who appear for arguing cases before us, also find difficulties in comprehending the provisions and making smooth submissions. There are cases all over India being dealt by benches of ITAT concerning the issues of wrong selection of section/code. We find that in the undermentioned cases, the Benches of ITAT (including Indore Bench) have examined such situations and have provided appropriate relief to the assessees by adopting a pragmatic approach: (i) ITAT, Mumbai in Rambha Charitable Trust, Mumbai Vs. Commissioner of Income-tax, ITA No. 5111/Mum/2024, order dated 29.11.2024 (ii) ITAT, Kolkata in North Eastern Social Research Centre Vs. CIT(Exemption), Kolkata, ITA No. 741/Kol/2024, order dated 09.07.2024 (iii) ITAT, Indore in Sir Seth Sarupchand Hukum Chand Charitable Trust Vs. CIT(Exemption), ITA No. 797/Ind/2024 (iv) ITAT, Indore in Ratlam Ahinsa Shiksha Samiti Vs. CIT(Exemption), Bhopal, ITA No. 719/Ind/2024 (v) ITAT, Indore in Balaji Gau Sarakshan Sansthan Vs. CIT(Exemption), Bhopal, ITA No. 887 & 890/Ind/2025
8.Respectfully following the view taken by ITAT, Pune in Subhadra Foundation (supra) cited by Ld. AR and further decisions of various benches as noted above in preceding para, we are inclined to set aside the impugned orders of Ld. CIT(E) for a de novo adjudication after taking into account correct/applicable clause of section 12A/12AB and 80G. The Ld. CIT(E) shall provide necessary opportunity of hearing to assessee and the assessee shall file necessary documents. We expect the Ld. CIT(E) to hear all three cases of assessee together and dispose of judiciously without being influenced by earlier orders in any manner."
When these facts were confronted to the learned CIT-DR, he could not controvert the above fact situation.
We noted that the facts are clear and we are of the view that merely for technical glitch, substantive right of the assessee cannot be defeated. Hence, we set aside the order of learned CIT(Exemption) and remand the matter back to his file for de-novo adjudication after allowing an opportunity of being heard to the assessee. The assessee will file the required documents before the learned CIT(Exemption) for his examination. Accordingly, the appeal is allowed for statistical purposes.
In the result, the appeal of the assessee is allowed for statistical purposes.