Clerical error in Form 10AB cannot alter charitable character; registration and 80G approval require fresh reconsideration.

A bona fide clerical error in Form 10AB cannot by itself change an institution's substantive character where the memorandum shows only charitable objects. The mistaken entry of "religious-cum-charitable" was treated as a curable procedural defect, so denial of registration under section 12AB could not rest solely on that classification and had to be reconsidered on the correct footing. Because the section 80G refusal was consequential to the same error, that approval too required fresh examination after the registration application is assessed properly. The impugned orders were set aside and the applications remitted for reconsideration.

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Issues: (i) Whether the assessee's entry of "religious-cum-charitable" in Form 10AB could be treated as conclusive so as to deny registration as a charitable institution under section 12AB. (ii) Whether rejection of approval under section 80G could be sustained solely on the basis of that mistaken classification in Form 10AB.

Issue (i): Whether the assessee's entry of "religious-cum-charitable" in Form 10AB could be treated as conclusive so as to deny registration as a charitable institution under section 12AB.

Analysis: The assessee's memorandum of association disclosed charitable objects, while the description in Column 3 of Form 10AB was entered by mistake. A mistaken choice in an online form cannot alter the underlying character of the institution where the governing documents disclose only charitable activities. A bona fide procedural error should not defeat a substantive claim when the defect is capable of being corrected.

Conclusion: The classification as "religious-cum-charitable" could not be sustained, and the matter was required to be reconsidered on the basis that the assessee claims to be a charitable institution.

Issue (ii): Whether rejection of approval under section 80G could be sustained solely on the basis of that mistaken classification in Form 10AB.

Analysis: The denial of section 80G approval flowed from the same erroneous description in the registration application. Once the primary registration issue was set aside for fresh consideration, the consequential refusal of approval under section 80G also required reconsideration in accordance with law after examination of the registration application on the correct footing.

Conclusion: The rejection of section 80G approval was set aside and was directed to be reconsidered after the registration application is examined afresh.

Final Conclusion: The appeals succeeded to the extent that the impugned orders were set aside and the applications were remitted for fresh adjudication on the correct classification of the assessee's activities.

Ratio Decidendi: A bona fide clerical or procedural mistake in a registration form does not change the substantive nature of the institution where its governing documents disclose the correct character, and such a curable defect cannot be used to defeat statutory registration or consequential approval.

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