ITAT Remands Trust Registration and Section 80G Approval Applications for Fresh Adjudication:

Adhishthan Community Mental Health and Well Being Foundation filed an application in Form No. 10AB on September 27, 2025, seeking regular registration under Section 12AB of the Income Tax Act, 1961. The CIT (Exemption), rejected the application on the ground that the trust had furnished a copy of its provisional registration instead of the required regular registration document under the applicable statutory provisions.

The trust also challenged the rejection of its application for approval under Section 80G of the Act. Aggrieved by the orders dated March 7, 2026, and March 18, 2026, respectively, the trust filed appeals before the Tribunal.

Before the Tribunal, the assessee submitted that the application had been rejected due to the selection of an incorrect sub-clause, which was merely a clerical error. It contended that the defect should not deprive it of consideration of its application and sought a fresh adjudication.

The Tribunal held that the wrong selection of a section code or clause should not be treated as fatal to the proceedings initiated through the application. The Tribunal held that the CIT (E) should have provided the assessee with an opportunity to rectify the defect. Accordingly, it set aside the order relating to Section 12AB registration and remitted the matter to the CIT (E) for fresh adjudication. The authority was directed to allow the trust to file the correct application and decide the matter afresh on merits after granting a reasonable opportunity of hearing.