EYE RESEARCH CENTRE FOUNDATION,CHENNAI vs. CIT, EXEMPTIONS,, CHENNAI

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ITA 2375/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) was inserted into Section 80G(5) allowing applications to be filed anytime after commencement of activities, effective from 01.10.2024. The CIT(E) rejected the application after this amendment came into force.

What were the facts?

The assessee, Eye Research Centre Foundation, applied for regular approval under Section 80G of the Income Tax Act, 1961. Their application was rejected by the CIT(E) due to a delay of 79 days in filing.

What were the issues?

Whether the assessee's application for Section 80G approval, filed after the expiry of the provisional approval and with a delay, could be considered under the newly amended provisions of Section 80G(5).

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-Foundation against the order of the Learned Commissioner of Income Tax (Exemptions), (hereinafter referred to as “the Ld.CIT(E)”), Chennai, dated 21.06.2025 for rejecting the application dated 18.12.2024 in Form 10AB seeking approval u/s.80G of the Income Tax Act, 1961 (hereinafter referred to as "the Act”).

ITA No.2375/Chny/2025 (AY -) Eye Research Centre Foundation :: 2 :: 2. The brief facts of the case are that the assessee was a Trust registered under the Tamil Nadu Societies Registration Act, 1975 [formerly known as a Eye Research Centre Foundation] which has been converted into ‘Section 8 Company’ by approval dated 24.06.2025 and is now known as ‘Eye Research Centre Foundation’. The assessee is noted to have obtained provisional approval u/s.12A of the Act on 02.12.2022 and u/s.80G of the Act for the period from 02.12.2022 to AY 2025-26. Then, the assessee is noted to have obtained regular registration u/s.12A of the Act on 21.06.2025. However, it’s application for regular approval u/s.80G of the Act filed on 18.12.2024, has been rejected by the Ld.CIT(E) citing the reason that the application has been belatedly filed by ‘79’ days and he doesn’t have power to condone the delay.

3.

The Ld.AR explained that pursuant to the provisional approval u/s.80G of the Act, the assessee ought to have applied for regular approval u/s.80G of the Act i.e. on or before 30.09.2024 i.e. six months prior to the expiry of provisional approval u/s.80G of the Act. In other words, as the assessee had provisional approval up to AY 2025-26 i.e. up to 31.03.2025, assessee ought to have applied for regular approval u/s.80G of the Act on or before 30.09.2024 [six months prior to the expiry of provisional approval u/s.80G of the Act viz 31.03.2025]. But, the assessee inadvertently missed out to file the ibid application for

ITA No.2375/Chny/2025 (AY -) Eye Research Centre Foundation :: 3 :: regular approval u/s.80G of the Act on or before 30.09.2024, instead applied for regular approval u/s.80G of the Act on 18.12.2024 i.e. with a delay of ‘79’ days which has been rejected on account of delay in filing of 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 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).

ITA No.2375/Chny/2025 (AY -) Eye Research Centre Foundation :: 4 :: 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 18.12.2024, 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 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 21.06.2025 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 18.12.2024 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.

ITA No.2375/Chny/2025 (AY -) Eye Research Centre Foundation :: 5 :: 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 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

YASHVI Digitally signed by YASHVIR R SINGH Date: SINGH 2026.06.22 12:34:38 +05'30'

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