Denial of Exemption u/s 10(23C)(via) Due to Mismatch in Registration Details: ITAT Set Aside CIT(A) Order [Read Order]

The Ahmedabad Bench of Income Tax Appellate Tribunal ( ITAT ) set aside the order of the Commissioner of Income Tax (Appeals)[CIT(A)] and remands matter for de novo adjudication where exemption under section 10(23C)(via) of Income Tax Act,1961 was denied due to a mismatch in registration details.

Akshat Education and Charitable Trust,appellant-assessee, was a registered charitable trust engaged in educational activities. It had filed its return of income for the Assessment Year 2022-23 on 31.10.2022, within the extended due date of 07.11.2022, declaring nil income. The CPC, Bengaluru, processed the return under section 143(1) on 31.03.2023 and assessed the total income at Rs. 1,13,04,684, treating the gross receipts as taxable income.

The assessee submitted that the CPC had denied exemption under section 10(23C)(via) due to a mismatch in registration details in the ITR. The assessee had corrected the particulars on the ITBA portal and requested reprocessing of the return, which was treated as a rectification application under section 154.

However, the CPC rejected the request on 01.12.2023, repeating the same reasoning as in the initial processing order, without considering that the error was clerical and apparent from the record.

The assessee had then approached the CIT(A), but due to a drafting mistake, the grounds mentioned an issue related to the filing of Form 10B instead of Form 10BB. The CIT(A), vide order dated 30.06.2025, dismissed the appeal on this incorrect basis without examining the real issue of mismatch in registration particulars. Aggrieved by this order, the assessee filed the present appeal before the tribunal.

The two member bench comprising Dr. B.R.R Kumar (Vice President) and Suchitra Kamble (Judicial Member) reviewed the record and considered the submissions of the counsel. It noted that the key issue of mismatch in registration details, which led to the denial of exemption under section 10(23C)(via), had not been properly examined by the CIT(A).

The CIT(A) had instead assumed that the dispute related to the filing of the audit report in Form 10B or 10BB, while the actual issue was a clerical error in the ITR that had already been corrected through a rectification request.

To ensure fair consideration, the appellate tribunal set aside the order of the CIT(A) and sent the matter back for de novo adjudication. It directed the CIT(A) to review the rectification application, verify the assessee’s claim for exemption, and pass a reasoned order after giving an opportunity of hearing. The assessee was also asked to cooperate and provide all necessary documents and evidence for proper disposal of the case.

Accordingly the appeal was allowed for statistical purposes.

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