Wrong Section Code Cannot Justify Rejection of S. 12A Registration: ITAT Remands Matter and Condones 18-Day Delay [Read Order]
The Tribunal remanded the matter to the CIT(E) for fresh consideration or rectification, allowing the appeal for statistical purposes.
![Wrong Section Code Cannot Justify Rejection of S. 12A Registration: ITAT Remands Matter and Condones 18-Day Delay [Read Order]](https://images.taxscan.in/h-upload/2025/12/25/2114826-itat-remands-matter-condones-18-day-delay-taxscan.jfif "Wrong Section Code Cannot Justify Rejection of S. 12A Registration: ITAT Remands Matter and Condones 18-Day Delay [Read Order]")
The Amritsar Bench of Income Tax Appellate Tribunal (ITAT) condoned an 18-day delay in filing the appeal and held that Section 12A of the Income Tax Act, 1961 registration cannot be rejected solely for selecting an incorrect section code in the application. Accordingly, the matter was remanded to the CIT(E) for fresh consideration or to allow rectification, and the appeal was...
The Amritsar Bench of Income Tax Appellate Tribunal (ITAT) condoned an 18-day delay in filing the appeal and held that Section 12A of the Income Tax Act, 1961 registration cannot be rejected solely for selecting an incorrect section code in the application. Accordingly, the matter was remanded to the CIT(E) for fresh consideration or to allow rectification, and the appeal was allowed for statistical purposes.
The Assessee, Chintpurni Mandir (Braham Akhara), a charitable society registered under the ‘SocietiesRegistration Act’, since 6th Oct., 2000, filed an appeal against the order of the CIT (Exemptions) Chandigarh dated 08.10.2024 rejecting the application for registration under section 12A (1) (ac)(iii) of the Income Tax Act, 1961 filed on 27.04.2024.
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The Section 12A of the Income Tax Act, 1961 explained that: Conditions for applicability of sections 11 and 12
“notwithstanding anything contained in clauses (a) to (ab), the person in receipt of the income has made an application in the prescribed form and manner to the Principal Commissioner or Commissioner, for registration of the trust or institution,—
(iii) where the trust or institution has been provisionally registered under section 12AB, at least six months prior to expiry of period of the provisional registration or within six months of commencement of its activities, whichever is earlier;”
The Assessee obtained provisional registration under Section 12A on November 13, 2023 and consequently, filed an application for permanent registration in Form 10AB on 17.04.2024, with all required documents.
The CIT(E) rejected the application without a hearing on the ground that the society had already commenced activities before applying for provisional registration, making it ineligible under the procedure prescribed post 1st October, 2023. Essentially, the rejection was due to an inadvertent error in selecting the wrong section code in the provisional registration application.
The Counsel for the Appellant, S. K. Vatta, argued that registration should not be denied merely for a minor technical error in selecting the wrong section code and further, he relied on Sh. Alakh Sahiba Trust v. CIT(E) Chandigarh in ITA Nos. 24 & 27/Asr/2025 with order dated 29.05.2025, sought appropriate relief.
On the other hand, the Departmental Representative for the Respondent, Sunil Gautam, supported the CIT(E)'s order but raised no objection to remanding the matter back to the CIT(E) for fresh consideration of the application.
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The Tribunal consisted of Judicial Member, Udayan Dasgupta and Accountant Member, Manoj Kumar Aggarwal, heard and reviewed the matter.
The Tribunal, after considering the submissions made, observed that the assessee received provisional registration on 13.11.2023, and filed the final registration application within time. No adverse findings were made regarding the genuineness of activities or financial utilization.
The Tribunal held that registration cannot be rejected merely for mentioning a wrong section code, which is a curable defect. It also relied on the decision of of IIT Ropar Technology Business Incubator Foundation in ITA 612/Asr/2024 dated 20th August 2025 and Society For Technology Business Incubator vs. CIT(E) in ITA 1134/Chd/2024, stating that Applications filed timely with wrong section codes cannot justify rejection and the CIT(E) should inform the assessee of such errors and allow rectification rather than rejecting applications on technical grounds.
Since there was no adverse finding on genuineness, merits, or violation of Section 12A(4), the Tribunal remanded the matter to the CIT(E) for fresh consideration, treating the application as filed under the correct provision or allowing the assessee to rectify the defect.
Accordingly, the appeal of the assessee was allowed for statistical purposes. The Order was pronounced in open court on 17.12.2025.
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