For what it's worth, James Morgan appears on roll with Co. "C", Napier's Tennessee Cavalry Battalion, and then Co. "F", 10th Tennessee Cavalry Regiment.
The pension board's objection may have been that the final status of this soldier was unconfirmed. These men were recruited in west Tennessee by General Forrest during his raid through that part of the state. Once they were removed from Forrest and placed under General Wheeler, however, many of them lost heart and deserted.
Here's a link to a history of Naper's Battalion, which shows the same enlistment date and place for Company "C" as is reported in the pension application:
Contact me at firstname.lastname@example.org for copies of the two Morgan service records.