CIT(E) Has Power to Correct Mistake in Filing Application for Registration u/s 12AB | ITAT

Case Details: Shree Swaminarayan Gadi Trust vs. CIT (Exemptions) - [2024] 162 taxmann.com 772 (Surat-Trib.)

Judiciary and Counsel Details

• • Pawan Singh, Judicial Member & Bijayananda Pruseth, Accountant Member
  • Manish J. Shah & Rushin Patel, Advs. AR’s for the Petitioner.
  • Ashish Pophare, CIT-DR for the Respondent.

Facts of the Case

Assessee was a trust and applied for registration under section 12A. While filing the online application, the applicant selected an inappropriate sub-clause of Section 12A(1) (ac)(iv) instead of Section 12A(1)(ac)(iii). The assessee brought this to the notice of CIT(E) and prayed to treat the same under sub-clause (iii) of section 12A(1).

However, the CIT(E) rejected the application for registration under section 12A without considering the assessee’s prayer and stated that he has no power to change or rectify the application filed in Form 10AB. Aggrieved by the order, the assessee filed an appeal to the Surat Tribunal.

ITAT Held

The Tribunal held that the assessee had already explained the inadvertent mistake and prayed for correction before the CIT(E). The mistake in filing the entry was not fatal and could be considered in the appropriate sub-clause of section 12A(1).

Also, the assessee provided all the details and information in Form 10AB while applying for registration under section 12A/12AB. Accordingly, the Tribunal set aside the order of the CIT(E) and directed him to treat the application of the assessee under Section 12A(1)(ac)(iii) instead of Section 12A(1)(ac)(iv) and to consider the case on merit and pass the order in accordance with the law.