Curable typographical error in registration application led to remand, with consequential reconsideration of approval under tax exemption provisions

A bona fide typographical error in selecting the wrong clause in a registration application under section 12A(1)(ac) was treated as a curable defect, so the rejection was set aside and the matter remanded for fresh consideration under the correct clause after giving the assessee an opportunity to place relevant material. Because approval under section 80G(5) was consequential to the registration issue, that refusal was also set aside and remanded for reconsideration on merits.

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Issues: (i) whether the application for registration under section 12A(1)(ac) of the Income-tax Act, 1961, filed under the wrong clause due to a typographical mistake, could be treated as an application under the correct clause; (ii) whether the rejection of approval under section 80G(5) of the Income-tax Act, 1961 required reconsideration as a consequential issue.

Issue (i): whether the application for registration under section 12A(1)(ac) of the Income-tax Act, 1961, filed under the wrong clause due to a typographical mistake, could be treated as an application under the correct clause.

Analysis: The application was filed under clause (vi) instead of clause (iii) of section 12A(1)(ac). The Tribunal found that the mistake was inadvertent and technical in nature. It followed the view that such an error is capable of correction, and that the matter should be reconsidered on the basis of the application under the proper clause after giving the assessee an opportunity to place the relevant material.

Conclusion: The rejection was set aside and the matter was remanded to the CIT (Exemption) for fresh consideration treating the application as one under clause (iii) of section 12A(1)(ac).

Issue (ii): whether the rejection of approval under section 80G(5) of the Income-tax Act, 1961 required reconsideration as a consequential issue.

Analysis: The refusal of approval under section 80G(5) was linked to the registration issue under section 12A(1)(ac). Since the registration matter was sent back for fresh adjudication, the approval issue was also restored for reconsideration as a consequential matter.

Conclusion: The order denying approval under section 80G(5) was also set aside and remanded for fresh adjudication.

Final Conclusion: Both appeals were restored to the CIT (Exemption) for fresh decision on merits, with the registration issue to be examined under the correct statutory clause and the approval issue to follow consequentially.

Ratio Decidendi: A bona fide technical or typographical mistake in selecting the statutory clause in a registration application can be treated as a curable defect warranting remand for fresh consideration on merits.

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