CIT(E) Can’t Reject Trust’s Application for Registration Merely on a Technical Ground | ITAT

Case Details: Torna Rajgad Parisar Samajonnati Nyas vs. Commissioner of Income-tax (Exemptions) - [2025] 170 taxmann.com 720 (Pune-Trib.)

Judiciary and Counsel Details

• Dr. Dipak P. Ripote, Accountant Member & Vinay Bhamore, Judicial Member
• Sharad Atmaram Vaze & Amod S. Vaze for the Appellant.
• Ajay Kumar Keshari for the Respondent.

Facts of the Case

Assessee-trust applied for registration in Form 10AB under section 12A(1)(ac)(vi). Commissioner (Exemption) found that the assessee-trust had claimed exemption under section 11, and thus said provisions of section 12A(1)(ac)(vi)(B) were not applicable in the assessee’s case. Accordingly, the application filed by the assessee was rejected by him.

The Assessee approached the Tribunal against the order of rejection.

ITAT Held

The Tribunal held that the assessee trust was required to file an application under clause (iii) of section 12A(1)(ac), but due to inadvertent error, the application was filed under clause (vi) of section 12A(1)(ac). For this reason alone, the Commissioner (Exemption) rejected its application for registration.

The Commissioner (Exemption) erred in dismissing the application for registration merely on a technical ground, and accordingly, it is proper to set aside the order passed by the Commissioner (Exemption).

ITAT directed the Commissioner (Exemption) to treat the application already filed by the assessee as under clause (iii) of section 12A(1)(ac) instead of under clause (vi) of section 12A(1)(ac) and decide the same as per fact and law after providing reasonable opportunity of hearing to the assessee.

List of Cases Referred to

• Shree Swaminarayan Gadi Trust v. CIT (Exemptions) [2024] 162 taxmann.com 772/207 ITD 666 (Surat-Trib.) (para 3).