ITAT Grants 12AB Registration to Trust Despite Wrong Section Code in Form 10AB

Nagpur ITAT holds that a clerical error in selecting the wrong section code while filing Form 10AB cannot be a ground to deny registration when the trust’s charitable activities and documents are otherwise found genuine.

The Nagpur Bench of the Income Tax Appellate Tribunal (ITAT) allowed the appeal of Shree Shyam Mitra and directed the Commissioner of Income Tax (Exemption), Pune, to grant registration under Section 12AB of the Income-tax Act. The Tribunal observed that the trust’s application had been rejected solely because the wrong section code was selected in Form 10AB, despite the trust having furnished all relevant documents and established the genuineness of its charitable activities.

The assessee-trust, registered under the Bombay Public Trust Act, 1950 since 1983, had applied for registration under Section 12AB by filing Form 10AB on 6 March 2025. While filing the online application, the trust inadvertently selected Section 12A(1)(ac)(ii) instead of the appropriate clause, Section 12A(1)(ac)(vi)(B). Based on this technical error, the CIT(E) treated the application as non-maintainable and rejected it.

Before the Tribunal, the assessee submitted that the mistake was purely clerical and bona fide. It was pointed out that the trust had already commenced charitable activities and had furnished extensive supporting documents, including its registration certificate, trust deed and financial statements. The assessee further argued that the authorities had not identified any defect in its objects, activities or supporting evidence.

The Tribunal noted that the documents filed along with Form 10AB clearly demonstrated that the trust was carrying on charitable activities and that its application should have been considered under the correct statutory provision. It observed that during the proceedings, the trust had complied with all notices and furnished the details sought by the CIT(E). The only reason for rejection was the incorrect selection of the section code in the online form.

Relying on its earlier decision in Gospel India Ministries, the Tribunal reiterated that quoting a wrong provision or selecting an incorrect clause in an application cannot defeat a legitimate claim when the substantive conditions prescribed under the law are satisfied. It emphasized that registration under Section 12AB cannot be denied on mere technicalities when no discrepancy has been found in the trust’s charitable objects or activities.

Thus, the Tribunal set aside the order of the CIT(E) and directed the department to grant registration under Section 12AB to the assessee-trust.

 The appeal was allowed and the ITAT directed the Revenue authorities to grant registration under Section 12AB, holding that a clerical error in selecting the section code in Form 10AB cannot justify rejection of a genuine charitable trust’s registration application.

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