HOPE TRUST,CHENNAI vs. CIT, EXEMPTIONS,, CHENNAI

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ITA 2374/CHNY/2025Status: DisposedITAT Chennai20 May 20265 pages

In favour of the assessee: the assessee's appeal was allowed. From the AI summary of this appeal.

AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that a new clause (iv) inserted into Section 80G(5) by the Finance Act, 2024, allows applications to be filed at any time after commencement of activities. The CIT(E) was directed to treat the application as filed under this new clause.

What were the facts?

The assessee-Trust applied for regular approval under Section 80G of the Income Tax Act, 1961, but filed it 45 days after the prescribed deadline. The CIT(E) rejected the application due to the delay, stating he had no power to condone it.

What were the issues?

Whether an application for Section 80G approval filed belatedly can be considered under newly inserted provisions allowing filing at any time after commencement of activities.

Which sections of the Income-tax Act were involved?

Section 80G

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, ‘A’ BENCH: CHENNAI

Before: SHRI ABY T. VARKEY & MS. PADMAVATHY. S

Hearing: 07.04.2026Pronounced: 20.05.2026

आदेश / O R D E R PER ABY T. VARKEY, JM: This is an appeal preferred by the assessee-Trust against the order of the Learned Commissioner of Income Tax (Exemptions), (hereinafter referred to as “the Ld.CIT(E)”), Chennai, dated 24.06.2025 for rejecting the application dated 14.11.2024 in Form 10AB seeking approval u/s.80G of the Income Tax Act, 1961 (hereinafter referred to as "the Act”).

2.

The brief facts of the case are that the assessee is noted to be established on 10.02.2017 and obtained provisional approval u/s80G of

ITA No.2374/Chny/2025 (AY -) Hope Trust :: 2 :: the Act on 23.06.2022 in Form 10AC from AYs 2023-24 to 2025-26. The assessee is noted to have filed for regular approval u/s.80G of the Act on 14.11.2024 i.e. ‘45’ days after the expiry of 30.09.2024 [six months prior to expiry of provisional approval i.e. 31.03.2025]. Hence, the Ld.CIT(E) is noted to have rejected application filed by the assessee since it was filed belatedly on 14.11.2024 with a delay of ‘45’ days, and held it to be not maintainable, since he has no power to condone the delay.

3.

The Ld.AR submitted that pursuant to the provisional approval u/s 80G of the Act , the appellant ought to have applied for regular approval u/s 80G of the Act (supra)on or before 30.09.2024, i.e., six months prior to the expiry of provisional approval u/s 80G. In other words, as the appellant had provisional approval up to AY 2025-26, i.e., up to 31.03.2025, it ought to have applied for regular approval u/s 80G on or before 30.09.2024 (six months prior to the expiry of provisional approval u/s.80G of the Act which is 31.03.2025). However, the appellant inadvertently missed out to file application for regular approval u/s 80G on or before 30.09.2024, instead applied for regular approval u/s 80G of the Act on 14.11.2024, i.e., with a delay of ‘45’ days, which has been rejected on account of delay in filing the same.

4.

In this regard, the Ld. AR further submitted that Section 80G has been amended by inserting clause (iv) in the first proviso to Section

ITA No.2374/Chny/2025 (AY -) Hope Trust :: 3 :: 80G(5), which now allows an assessee that has commenced its activities to apply for approval at any time after such commencement. Accordingly, it was submitted that the assessee’s application may be considered under clause (iv)(B) of Section 80G(5) of the Act. The Ld. AR also referred to the Memorandum explaining the provisions of the Finance Bill, 2024, wherein the insertion of clause (iv) was proposed to rationalize the timeline for filing the application for approval by providing to file application any time after commencement of activities. In view of this amendment, with effect from 01.10.2024, the Ld. AR requested that the approval may be granted, being the date from which the amended provisions under clause (iv) of Section 80G(5) came into force.

5.

On the other hand, the Ld. Departmental Representative (DR), has relied on the orders of Ld CIT(E) and contended that assessee may now file fresh application as per the amended provision under clause (iv)(B) of Section 80G(5).

6.

We have heard the rival submissions, and perused the materials available on record. The assessee is noted to have filed an application under clause (iii) of first proviso to sub-section (5) of Section 80G of the Act seeking regular approval u/s. 80G of the Act on 14.11.2024, which has been rejected by the Ld. CIT(E) as not maintainable on the ground that the assessee has belatedly filed the application and didn’t file the

ITA No.2374/Chny/2025 (AY -) Hope Trust :: 4 :: same before 30.09.2024 (six months prior to expiry of provisional approval u/s.80G of the Act which in this case is 31.03.2025) and that he has no power to condone the delay. Be that as it may, it is noted that clause (iv) has now been inserted into the first proviso to Section 80G(5) by the Finance Act, 2024, w.e.f. 01.10.2024 to enable an assessee to apply for approval u/s 80G(5) of the Act at any time after commencement of its activities. This provision is noted to be disjoint from clause (iii), which governed the earlier timeline. The Ld CIT(E) is noted to have passed the impugned order on 24.06.2025 rejecting the application of appellant/assessee after the amendment had come into force. We, therefore direct the Ld CIT(E) to treat the application filed by appellant/assessee on 14.11.2024 as having been filed under clause (iv)(B) of the first proviso to Section 80G(5), and decide in accordance with the law. In view of the above, the appeal filed by the assessee is allowed for statistical purposes only.

7.

In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced on the 20th day of May, 2026, in Chennai. Sd/- Sd/- (प�ावती .एस) (एबी टी. वक�) (PADMAVATHY. S) (ABY T. VARKEY) लेखा सद�य/ACCOUNTANT MEMBER �या�यक सद�य/JUDICIAL MEMBER

ITA No.2374/Chny/2025 (AY -) Hope Trust :: 5 :: चे�नई/Chennai, �दनांक/Dated: 20th May, 2026. YS आदेश क� ��त�ल�प अ�े�षत/Copy to: 1. अपीलाथ�/Appellant 2. ��थ�/Respondent 3. आयकरआयु�/CIT, Chennai / Madurai / Salem / Coimbatore. 4. िवभागीय�ितिनिध/DR 5. गाड�फाईल/GF

Digitally signed YASHVI by YASHVIR SINGH R SINGH Date: 2026.06.23 10:05:21 +05'30'

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