Clerical error in registration form should not nullify application; allow reconsideration or deem filing corrected and proceed.

A clerical misdescription in Form No.10AB led to rejection of an application for final registration under section 10(23C); the analysis found the annexures and intent indicated registration under the correct clause and that the application was dismissed without adequate opportunity to explain or correct the error. The appropriate remedy is to set aside the rejection and restore the file to the tax authority with directions to permit reconsideration, to treat the original filing as if made under the correct clause, or alternatively to accept a fresh application deemed originally filed.

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Issues: (i) Whether the rejection of the assessee's application for final registration/approval under section 10(23C)(iv) of the Income-tax Act, 1961 was maintainable where Form No.10AB erroneously mentioned clause (ii) instead of clause (iv), and whether relief in the form of reconsideration or deeming the application to have been filed under the correct clause should be granted.

Analysis: The assessee held provisional registration under section 10(23C)(iv) and filed Form No.10AB for permanent registration; the form erroneously indicated clause (ii) instead of clause (iv). The impugned order rejected the application as non-maintainable on the basis of the incorrectly specified clause. The appellate body found that the record showed the assessee's intent and supporting annexures consistent with registration under clause (iv), and that the application was disposed of without giving the assessee a proper and sufficient opportunity to explain or to correct the clerical error. Relief by reconsideration or treating the filing as made under the correct clause was identified as an appropriate remedy to avoid rejection for a mere mistake in mentioning the provision.

Conclusion: The impugned order is set aside and the matter is restored to the file of the Commissioner of Income Tax (Exemption) with directions to give the assessee a proper and sufficient opportunity of being heard and to consider the application for registration under section 10(23C) of the Income-tax Act, 1961 treating the application filed under section 10(23C)(ii) as having been filed under section 10(23C)(iv), or alternatively permitting filing of a fresh application to be deemed originally filed.

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