Registration u/s 12A cannot be rejected simply on the basis of mentioning of a wrong section code which is a curable defect – ITATÂ
In a recent judgment, ITAT Amritsar has held that registration under section 12A cannot be rejected simply on the basis of mentioning of a wrong section code which is a curable defect.
ABCAUS Case Law Citation:
4946 (2025) (12) abcaus.in ITAT
In the instant case, the assessee had challenged the order passed by the CIT (Exemptions) rejecting the application for registration u/s 12A (1) (ac)(iii) of the Income Tax Act, 1961 (the Act).
The assessee was a charitable society registered under the ‘Societies Registration Act in the year 2000 and had been carrying on various charitable activities since inception as per objects contained in its memorandum and has been provisionally registered u/s 12A vide order passed in the year 2023.
Subsequently, application for permanent registration was filed in Form 10AB, along with the copies of trust deed, society registration certificate, audited financials, bank statement and other necessary particulars in 2024.
However, due to an inadvertent typographical error in selecting section code wherein instead of mentioning 02-item (B), the assessee wrongly mentioned 02 Item (A) of sub clause (vi) of clause (ac) of sub-section (1) of section 12A.
However, the application was rejected without a hearing, on the ground that the assessee had already commenced its charitable activities when it applied for provisional registration in 2023, which was not as per procedure of section 12A as laid down post 01st October, 2023. In other words, the application has been rejected for an inadvertent error in filing the provisional application under a wrong section code.
Before the Tribunal, the assessee contended that the application for registration should not be refused simply on account of a minor technical error in selecting a wrong section code and in support he relied upon the coordinate bench judgment.
The Tribunal observed that the assessee had been granted provisional registration in 2023 and the application for final registration u/s 12A(1)(ac)(iii) was filed within time and there was no finding that the activity carried out by the society was not genuine or there are any defects regarding utilization of financials.
The Tribunal opined that registration cannot be rejected simply on the basis of mentioning of a wrong section code which is a curable defect and the coordinate bench had held that simply on the basis of an inadvertent error in mentioning a wrong section code, cannot be so fatal to reject the registration without considering the fact that there is no violation of provisions of section 12A(4) of the Act, 1961.
Following the coordinate bench decisions, the Tribunal opined that the interest of justice will be served if the matter is remanded back to the files of the CIT(E) for considering the application for registration afresh under the correct provisions or to grant opportunity to the assessee to rectify the defect and to proceed with the registration process as per provisions of law.
In the result, the appeal of the assessee was allowed.Â
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