TaxTMI 
TaxTMI 
2026 (8) TMI 260
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.... 2. That the rejection is bad in law as the so-called "wrong clause selection" is a purely technical, procedural and curable defect, which is not fatal to the application, as consistently held in: Akhil Bhartiya Adhivakta Parishad v. CIT(E), ITA No. 4954/De1/2024 (Del ITAT, Feb 2025) - mistake in selecting wrong 80G clause is curable, rejection on this ground alone is unsustainable. Youth Service Centre v. CIT(E) (ITAT, 2025)- rejection only due to wrong clause in Form IOAB held invalid; matter remanded for reconsideration on merits. Baroda Youth Federation v. CIT(E) (ITAT Ahmedabad, 2024/25) - wrong sub-clause selection in 12A application is a technical error; application must be evaluated under correct clause. Aashritha The Dr. U. Sankaranarayana Raju Charitable Trust v. CIT(E) (Hyderabad ITAT, 2025) - rejection on wrong section code held unjustified; technical mistakes cannot defeat substantive entitlement. 3. That the Learned CIT(E) failed to appreciate that the Appellant had fully complied with all statutory requirements, furnished complete documentation, and satisfied all conditions under Sections 12AB / 80G(5), and therefore t....
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....ssessee in support of its contentions had also produced medical certificate of Manas Multispeciality Hospital dated 20.11.2025. 4.1 Perused the record and having heard learned counsel for the assessee as well as ld. D.R, it is perceived that the explanation offered in the condonation application is plausible and "sufficient cause" has been shown by the assessee, which prevented the assessee trust from filing the appeal within the specified period before this Tribunal and accordingly, we are inclined to condone the short delay in filing the appeal before us. 5. Now the brief facts of the case are that the assessee, Shanmukappa Charitable Trust, is duly constituted by Deed of Trust dated 1.3.2021 at Bengaluru and is engaged in carrying out activities falling within the ambit of charitable purposes as defined under section 2(15) of the Act. The assessee trust applied for registration u/s. 12AB of the Act on 8.11.2023 in Form No. 10AB which was rejected by the ld. CIT (Exemptions), Bengaluru vide order dated 13.5.2024 on the ground that the assessee had not responded to the notices issued and failed to appear before the ld. CIT(Exemptions) and submit all the necessary documents/d....
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.... granting registration u/s. 12AB of the Act. 8. The ld. D.R. on the other hand, supported the order of the ld. CIT (Exemptions), Bengaluru. 9. We have heard the rival submissions and perused the materials available on record. It is an undisputed fact that the ld. CIT (Exemptions) vide order dated 13.5.2024 had rejected the application on the ground that the assessee did not respond to the notices issued and failed to appear and submit all the necessary documents/details as required for registration. Further, the ld. CIT (Exemptions) vide order dated 6.1.2025 had rejected the application on the ground that assessee had selected the wrong section code. We also observe that the ld. CIT (Exemptions) vide order dated 27.1.2025 as well as 23.9.2025 had rejected the application on the ground that since the rejection order had attained finality as no appeal was filed before the ITAT within the same period amounts to collateral attack on a concluded decision and undermines the appellate framework recognized by law and accordingly held that the present application is not maintainable as non-est and is thus void-ab-initio. 9.1 We are of the considered opinion that on receipt of an ap....
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....d void-ab-initio is highly unjustified and bad in law as there are no such provisions under the Act that once the application for registration is rejected then the assessee can never apply for registration before the same Authority for ever. 9.2 Having held so, we are also of the considered opinion that as the assessee could not represent its case before the ld. CIT (Exemptions) by submitting the relevant documents/details required for registration u/s. 12AB of the Act, and considering the request of the ld. A.R. of the assessee, we deem it fit and proper to remit the entire issue of registration to the file of ld. CIT (Exemptions) to decide afresh in accordance with law. Needless to say, a reasonable opportunity of being must be granted to the assessee. The assessee is also directed to produce all the relevant documents/ records/ accounts/ certificate/ reports to prove the genuineness of its activities and the compliance of such requirements of any other law for the time being in force. We make it clear that in case of further default, the assessee shall not be entitled for any leniency. It is ordered accordingly. 10. In the result, appeal filed by the assessee is partly all....