Bonafide Mistake of Applying for Registration in Form 10 AB Instead of Form 10 A is Condonable: ITAT [Read Order]

The Hyderabad bench of the Income Tax Appellate Tribunal ( ITAT ) viewed that the bonafide mistake of applying for registration in Form 10 AB instead of Form 10 A is condonable and directed the CIT(E) to dispose of the request of the assessee by allowing it to apply under Form 10A.

Mandava Foundation, the assessee trust obtained registration under section 12A(a) of the Income Tax Act, 1961 (‘the Act’) by order dated 26/12/2005 under section 12AA(1)(b)(i) of the Act. Subsequently on 27/05/2021, the assessee sought for and granted provisional registration under 12A(1)(ac)(vi) of the Act in form No. 10AC.  Again on 15/05/2023, the assessee applied in Form 10AB under section 12A(1)(ac)(iii) of the Act.  

CIT(E) observed that on an earlier occasion, the assessee applied under 12A(1)(ac)(vi) of the Act instead of 12A(1)(ac)(i) of the Act, since the assessee holds a registration under section 12A of the Act, issued on 26/12/2005.  Assessee submitted that by mistake, on earlier occasion, wrong code under section 12A(1)(ac)(iv) of the Act was selected instead of 12A(1)(ac)(i) of the Act and, therefore, the mistake may be excused and registration may be done.  CIT(E) rejected the application filed in Form 10AB for regular registration under section 12AB of the Act, holding it infructuous and barred by limitation. 

It was submitted that there was sheer mistake in selecting a wrong code, namely, “02-Sub-clause (vi) of clause (ac) of sub-section (1) of Section 12A” instead of section code 12A(1)(ac)(i) of the Act, and the assessee does not stand to gain by such mistake and, therefore, the mistake may be condoned and learned CIT(E) may be directed to grant regular registration. 

Two member bench of Rama Kanta Panda (Vice President) and K.Narasimha Chary (Judicial Member) condoned the mistake committed by the assessee while applying registration in Form 10AB instead of Form 10A and also by making a selection of wrong section code, namely, 02-Sub clause (iii) of clause (ac) of sub-section (1) of section 12A of the Act instead of 02-Sub clause (i) of clause (ac) of sub-section (1) of section 12A of the Act. 

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