Form 10AB Error – ITAT Confirms Section 8 Firm Still Charitable

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  • Last Updated on 22 May, 2025

Form 10AB Error

Case Details: Kasi Visvanathar Koviloor Foundation vs. DCIT/ACIT (exemptions) - [2025] 174 taxmann.com 489 (Chennai-Trib.)

Judiciary and Counsel Details

  • ABY T. Varkey, Judicial Member & Jagadish, Accountant Member
  • N.V. Lakshmi, Adv. for the Appellant.
  • R. Clement Ramesh Kumar, CIT for the Respondent.

Facts of the Case

The assessee was a Section 8 Company formed to discharge charitable activities, viz., providing education to people experiencing poverty, addressing hunger and food insecurity, etc. It had applied for registration under section 12AB in Form No. 10AB. While doing so, the assessee inadvertently mentioned the nature of its activity in Column-3 of Form No. 10AB as ‘religious-cum-charitable’. On being asked, the assessee clarified that the nature of the activities was declared itself as ‘religious-cum-charitable’ by oversight/inadvertent mistake. It ought to have filled in Column-3 ‘charitable’ only.

The Commissioner (Exemptions) registered the assessee as a ‘religious-cum-charitable institution’. The aggrieved assessee filed the instant appeal before the Tribunal.

ITAT Held

The Chennai Tribunal held that the assessee’s classification as a ‘religious-cum-charitable trust’ happened because of a mistake that crept into Column-3 (Form 10AB) while filling out the electronic online portal. Therefore, the inadvertent mistake while filling out Column-3 can’t be a reasonable ground to grant registration under section 12AB by wrongly classifying it as a ‘religious-cum-charitable institution’. Such a mistake could not change its original character, which, per its Memorandum of Association, is a Charitable Institution.

Therefore, the order was set aside, and the assessee was allowed to file a physical form of Form 10AB before the Commissioner (Exemption), showing the nature of the activity as ‘charitable’, and the Commissioner (Exemption) was directed to consider the same and examine its eligibility under the law.

List of Cases Referred to

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Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.

The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:

  • The statutory material is obtained only from the authorized and reliable sources
  • All the latest developments in the judicial and legislative fields are covered
  • Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
  • Every content published by Taxmann is complete, accurate and lucid
  • All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
  • The golden rules of grammar, style and consistency are thoroughly followed
  • Font and size that's easy to read and remain consistent across all imprint and digital publications are applied