2025 (7) TMI 819 - AT - Income Tax

Technical error in Form 10A application under section 12A leads to remand for fresh adjudication

The ITAT Cochin allowed the assessee's appeal for statistical purposes after finding that denial of registration under section 12A was based on a ... Denying registration u/s 12A - technical mistake in selecting the wrong sub-section - assessee committed a technical mistake in making the application u/s 12A(1)(ac)(i) of the Act instead of u/s 12A(1)(ac)(iv) while preparing and submitting the Form 10A - HELD THAT:- We find that the assessee has made a technical mistake in applying u/s 12A(1)(ac)(i) of the Act instead of u/s 12A(1)(ac)(iv) of the Act and hence, we set aside the order of the ld. CIT(E) and remand the matter back to the file of the CIT(E) for fresh adjudication in accordance with law. Appeal of the assessee is allowed for statistical purposes. The Appellate Tribunal (ITAT Cochin) addressed an appeal by a charitable trust against the CIT(Exemption)'s order dated 26.12.2024, which denied registration under section 12A of the Income Tax Act. The assessee had initially obtained registration under section 12A(1)(ac)(i) via Form 10AC for AY 2022-23 to AY 2026-27 but later filed Form 10AB applying under section 12A(1)(ac)(iv). The CIT(E) rejected the application and cancelled the earlier registration, citing a 'technical mistake' and relying on sub-rule (6) of Income Tax Rules 17A, holding that 'since the applicant has obtained regular registration under section 12A erroneously, the same has to be cancelled.'Despite absence of representation for the assessee, the Tribunal found the error to be a technical mistake in selecting the incorrect sub-section. The Tribunal set aside the CIT(E)'s order and remanded the matter for fresh adjudication 'in accordance with law.' The appeal was allowed for statistical purposes. The key legal reasoning hinged on distinguishing a technical mistake in the application from a substantive defect warranting cancellation under Rule 17A(6).