Modasa Ekda Visha Khadayata Modipunch Kelvani Mandal vs. CIT(E)

Parties Involved

Facts Summary

The assessee is a Trust constituted on 15-01-1974 and registered under section 12A of the Income Tax Act, 1961. The Trust applied for regular registration under section 12A(1)(ac)(i) of the Act and was granted by the Commissioner of Income Tax (Exemption) on 31-05-2021 for the period commencing from Assessment Years 2022-23 to 2026-27. The Trust did not have approval under section 80G[5] of the Act. It applied for approval under section 80G[5][iv] of the Act in Form 10-A and got provisional registration in Form 10AC for the period from 30-11-2022 to Assessment Year 2025-26. However, for regular registration, the Trust filed an application in Form 10AB on 28-09-2024 under clause [ii] of the second proviso to section 80G[5] instead of clause [iii] of that section. The Commissioner of Income Tax (Exemption) issued a Show Cause Notice dated 23-03-2025 to explain the reason. The Trust explained that it was a mistake happened inadvertently and through oversight, however it is a curable defect and relied on a Kolkata Tribunal decision. The Commissioner of Income Tax (Exemption) rejected the application on the ground that he has no power and facility under the Act to amend the section code wrongly selected by the assessee in Form 10AB and thereby rejected the application for regular registration under section 80G[5] of the Act.…

Legal Issues

• 1. Whether the application filed in Form No. 10AB was filed under clause (ii) of the first proviso to section 80G(5) of the Income-tax Act, 1961 and the Appellant Trust does not have a valid approval under clause (ii) of first proviso to section 80G(5) of the Act.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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