BHARAT SEVASHRAM SANGHA,NAVI MUMBAI V. CIT, MUMBAI

ITA 7363/MUM/2025

AI Insights

The case involves two appeals by Bharat Sevashram Sangha against the orders of the Commissioner of Income Tax (Exemptions), Mumbai, which rejected the assessee's applications for registration under Section 12AB and for approval of fund under Section 80(G). The primary contention was the incorrect selection of a clause in the application form for registration under Section 12A, which led to the rejection of both applications. The Tribunal referenced a similar case, Shree Swaminarayan Gadi Trust Vs. CIT (E), to support the decision that such clerical errors should not lead to automatic rejection and should be rectified by the CIT (E).

• Counselvise Citation: [2026] 140 COUNSELVISE.COM (IT) 827454 (ITAT-MUMBAI)
• Duration Of Justice: 1 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-01-2026
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2025-2026
• Appeal Filed On: 14-11-2025
• Other Referred Cases: Shree Swaminarayan Gadi Trust Vs. CIT (E) [2024] 162 taxmann.com 772 (Surat-Trib.)
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: BISWANATH DAS
• Assessee Lawyers: RAHUL HAKANI
• Section: 12A

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH, MUMBAI BEFORE SHRI PAWAN SINGH, JUDICIAL MEMBER & SHRI ARUN KHODPIA, ACCOUNTANT MEMBER ITA No. 7363 & 7364/MUM/2025 (AY: NA) (Physicalhearing) Bharat Sevashram Sangha, Plot No.263, Bharat Sevashram Sangha, Swami Pranavanandaji Marg, Sector-31a, Vashi, Navi Mumbai-400703 [PAN:AAETB1220B] Vs Commissioner of Income Tax (Exemptions) Room No.601,6th Floor, Cumballa Hill MTNL TE Building, Dr Goparao Deshmukh Marg, Cumballa Hill, Mumbai Appellant / Assessee Respondent / Revenue Assessee by Shri Rahul Hakani, Advocate, Proxy for Shri Ruturaj H Gurjar Advocate Revenue by Shri Biswanath Das-CIT DR Date of Institution 14.11.2025 Date of hearing 08.01.2026 Date of pronouncement 08.01.2026 Order under section 254(1) of Income Tax Act PER PAWAN SINGH, JUDICIAL MEMBER: 1. These two appeals by the assessee are directed against the separate orders of learned CIT (E) Mumbai both dated 30.09.2025. In ITA No.7364/M/2025 the assessee has challenged the rejection of application for registration of assessee-Trust under Section 12AB. In ITA No.7363/Mum/2025, the assessee has challenged the rejection of application for approval of fund under Section 80(G). Both the appeals are inter-connected, based on common set of fact, therefore, both the appeals are clubbed, heard together and are decided by common order. Printed from counselvise.com ITA No.7363 & 7364/Mum/2025 Bharat Sevashram Sangha, Mumbai 2 2. The rival submissions of both the parties have been heard and record perused. The ld. Authorised Representative (AR) of the assessee submits that at the time of filing application under Section 12A for registration of assessee-Trust the assessee selected inappropriate clause/sub-clause. The assessee inadvertently selected incorrect Section 12A(1)(ac)(iv) instead of Section 12A(1)(ac)(iii). The ld. CIT (E) rejected the application by taking view that there is no provision for correction/amendment/modification in the application filed by assessee. The ld. AR for the assessee submit that there are a series of decision including decision of Surat Bench in Shree Swaminarayan Gadi Trust Vs. CIT (E) [2024] 162 taxmann.com 772 (Surat-Trib.), wherein it was held that where assessee-trust while filing application for registration under section 12A/12AB in Form-10AB, selected section 12A(1)(ac)(iv) instead of instead of section 12A(1)(ac)(iii) and ld CIT(E) rejected application on ground that he had no power to change or rectify application filed in Form-10AB, as mistake in filing entry was not fatal, CIT(E) was to be directed to treat application of assessee under section 12A(1)(ac)(iii) and to consider case on merits. 3. In support of other appeal in ITA No.7363/Mum2025, the ld. AR for the assessee submits that this appeal relates to registration of assessee for approval of fund under Section 80(G). Once the application under Section 12A was rejected, the assessee’s application under Section 80(G) was also rejected. The ld. AR of the assessee submits that matter may be restored back to the file of ld. CIT (E) for considering the application of assessee to Printed from counselvise.com ITA No.7363 & 7364/Mum/2025 Bharat Sevashram Sangha, Mumbai 3 reconsider it after taking decision on application for registration under Section 12AB, as registration under section 12AB is pre condition for approval of fund under Section 80(G). 4. We have considered the submission of both the parties. We find that a very small dispute is involved in the present appeal about inappropriate selection of clause/sub-clause of Section 12A which resulted into dismissal of their respective application. We find that coordinate Benches of the Tribunal in a series of decision including decision in Shree Swaminarayan Gadi Trust Vs. Commissioner of Income Tax (Exemptions) [2024] 162 taxmann.com 772 (Surat-Trib.) held that where assessee-trust while filing application for registration under Section 12A/12AB in Form 10AB selected section 12A(1)(ac)(iv) instead of Section 12A(1)(ac)(iii) and Commissioner (Exemptions) rejected application on ground that he had no power to change or rectify application filed in Form-10AB, as mistake in filing entry was not fatal, Commissioner (Exemptions) was to be directed to treat application of assessee under Section 12A(1)(ac)(iii) and to consider the case on merits. Thus, taking the consistent view, the application filed by assessee for registration under Section 12A is restored back to the file of ld. CIT (E) to consider the application of assessee under Section 12A(1)(ac)(iii) and to decide the application on merit. Needless to direct that before passing the order, the ld. CIT (E) shall allow reasonable opportunity to assessee to prove its object and activities and other statutory requirement. The assessee is also directed to make timely compliance before ld CIT(E). Printed from counselvise.com ITA No.7363 & 7364/Mum/2025 Bharat Sevashram Sangha, Mumbai 4 5. Further, considering the fact that application of assessee under Section 12A for registration under Section 12AB has been restored back to the file of CIT (E) therefore, grounds of appeal in ITA No.7363/Mum/2025, which relates to registration under Section 80(G), is also restored back to the file of CIT (E) to pass order after taking decision in application for registration under Section 12AB. In the result, both the appeals filed by assessee are allowed for statistical purpose. 6. In the result, both the appeals filed by assessee are allowed for statistical purpose. Sd/- ARUN KHODPIA ACCOUNTANT MEMBER Sd/- PAWAN SINGH JUDICIAL MEMBER MUMBAI, Dated: 08/01/2026 Ashwani Rao Sr. Private Secretary Copy of the order forwarded to: (1) The Assessee; (2) The Revenue; (3) The PCIT / CIT (Judicial); (4) The DR, ITAT, Mumbai; and (5) Guard file. By Order Assistant Registrar ITAT, Mumbai Printed from counselvise.com "