SRI NAGALAKSHMI EDUCATIONAL TRUST,SIVAKASI vs. CIT(EXEMPTION), CHENNAI

PDF · subscribers
ITA 2846/CHNY/2026Status: DisposedITAT Chennai12 October 2026AY 2025-266 pages
AI SummaryPartly Allowed

What did the Tribunal hold?

The Tribunal held that the assessee's application, filed on 28.09.2025, should be treated as having been filed under Clause (iv)(B) of the 1st Proviso to Section 80G(5) of the Act. The reasoning was that Clause (iv) was inserted into the 1st Proviso to Section 80G(5) by the Finance Act, 2024, effective from 01.10.2024, allowing applications to be filed at any time after the commencement of activities. The CIT(E) had passed the order rejecting the application on 28.03.2026, after this amendment came into force. The Tribunal noted that this provision is distinct from the earlier timeline governed by Clause (iii). The CIT(E) was directed to treat the application as filed under the new clause and decide in accordance with the law after hearing the assessee. The appeal was allowed for statistical purposes.

What were the facts?

The assessee, Sri Nagalakshmi Educational Trust, filed an appeal against the order of the Commissioner of Income Tax (Exemptions) (CIT(E)), Chennai, dated 28.03.2026 for Assessment Year 2025-26. The CIT(E) had rejected the assessee's application for approval under Section 80G of the Income Tax Act, 1961, on the grounds of belated filing. The provisional approval for the trust was valid up to AY 2025-26 (previous year 2024-25), and the CIT(E) noted that the application in Form 10AB was filed on 28.09.2025, after the due date of September 2024. The CIT(E) expressed inability to condone the delay.

What were the issues?

1. Whether the Learned CIT(E) ought to have treated the application filed on 28.09.2025 under Clause (ii) of the 1st Proviso to Section 80G(5) and decided on the grant of registration, rather than rejecting it. Assessee's Contention: The assessee argued that the application should be considered under Clause (iv)(B) of Section 80G(5) of the Act, as inserted by the Finance Bill, 2024. This clause allows assessees that have commenced their activities to apply for approval at any time after such commencement. The assessee relied on the Tribunal's decision in Aalayam vs. CIT, Exemptions Chennai (ITA 1012/Chny/2025) for this proposition. Revenue's Contention: The Learned Departmental Representative supported the CIT(E)'s order and argued that the assessee could file a fresh application as per the amended provision under Clause (iv)(B) of Section 80G(5).

Which sections of the Income-tax Act were involved?

Section 80G(5)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, ‘D’ BENCH: CHENNAI

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

Hearing: 27.08.2026Pronounced: 12.10.2026

आदेश / O R D E R PER ABY T. VARKEY, JM: This is an appeal preferred by the assessee against the order of the Learned Commissioner of Income Tax (Exemptions), (hereinafter referred to as ‘Ld. CIT(E)’), Chennai, dated 28.03.2026 for AY 2025-26 denying approval u/s.80G of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’).

2.

It is noted that the Ld. CIT(E) has rejected the application filed by the assessee seeking approval under Section 80G noticing belated filing of

ITA 2846 /Chny/2026 (AY 2025-26) Sri Nagalakshmi Educational Trust :: 2 :: the ibid application. According to the Ld. CIT(E), assessee ought to have filed application for approval under Section 80G in Form 10AB at least on or before September, 2024 (i.e. 6 months prior to the expiry of the period of provisional approval). According to the Ld. CIT(E), in the case of assessee, the provisional approval was upto AY 2025-26 (relevant to previous year 2024-25) and thus, an application ought to have been filed on or before September, 2024. Noticing that the assessee has filed the application only after the expiry of the due date i.e. on 28.09.2025, he expressed his inability to condone the delay in belatedly filing of the application and hence has rejected the application filed in Form 10AB seeking approval u/s.80G of the Act.

3.

Before us, inter alia the assessee is noted to have filed statement of facts and ground of appeal. According to it, assessee pleads (i) the Ld. CIT(E) ought to have treated the application filed on 28.09.2025 in Form 10AB as having been filed under Clause (ii) of the 1st Proviso to Section 80G(5) and decided the grant of registration under 80G of the Act rather than rejecting the same. Further, it is noted that memorandum explaining the provisions of the Finance Bill, 2024, wherein the Parliament has inserted Clause (iv) in the 1st 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, assessee’s plea as understood is that it’s application may be considered under Clause (iv)(B)

ITA 2846 /Chny/2026 (AY 2025-26) Sri Nagalakshmi Educational Trust :: 3 :: of Section 80G(5) of the Act and for such a proposition relies inter alia on the decision of this Tribunal in the case of Aalayam vs. CIT, Exemptions Chennai in ITA 1012/Chny/2025 dated 22.07.2025, wherein this Tribunal held as under:-

Aforesaid appeal filed by the assessee arises out of the order of Learned Commissioner of Income Tax (Exemptions), Chennai [hereinafter “CIT(A)”] dated 17.03.2025 seeking approval u/s.80G of the Income tax Act, 1961 (hereinafter “the Act”). 2. The sole ground of appeal in this appeal of assessee is against rejection of application seeking approval u/s. 80G of the Act on the ground that the same is not maintainable. 3. The assessee had filed an application dated 30.09.2024 in Form No. 10AB under clause (ii) of the first proviso to sub-section (5) of Section 80G of the Act. The Ld. CIT(E) rejected the application on the ground that the trust was required to file the application by 30.06.2024, in view of CBDT Circular No.7/2024 dated 25.04.2024, but has filed it on 30.09.2024, with a delay of 92 days. The Ld CIT(E) held the application to be not maintainable. 4. The Learned Authorized Representative (AR) of the assessee has submitted that the assessee had filed an application under clause (ii) of the first proviso to sub-section (5) of Section 80G of the Act. As per the earlier provisions, the application was required to be made on or before September 2023, i.e., six months prior to the expiry of the provisional approval period, which ended on 31.03.2024. Subsequently, the CBDT issued Circular No.7/2024 dated 25.04.2024, extending the due date for filing the application to 30.06.2024. 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, the Ld. AR requested that the approval may be granted with effect from 01.10.2024, being the date from which the amended provisions under clause (iv) of Section 80G (5) come into force. 5. On the other hand, the Ld. Departmental Representative (DR), has relied on the orders of CIT(E) and argued that assessee can now file fresh application as per the amended provision under clause (iv)(B) of Section 80G (5).

ITA 2846 /Chny/2026 (AY 2025-26) Sri Nagalakshmi Educational Trust :: 4 :: 6. We have heard the rival submissions, and perused the materials available on record. The assessee made application under clause (ii) of first proviso to sub-section (5) of Section 80G of the Act seeking approval u/s. 80G of the Act on 30.09.2024. The Ld. CIT(E) has rejected the application as not maintainable on the ground that the assessee has not filed the application before 30.06.2024 as provided in CBDT Circular No.7/2024 dated 25.04.2024. However, it is noted that clause (iv) has now been inserted into the first proviso to Section 80G (5) by the Finance Act, 2024, wef 01.10.2024 to enable assessee trust to apply for approval u/s 80G (5) at any time after commencement of its activities. This provision is disjoint from clause (iii), which governed the earlier timeline. The Ld CIT(E) has passed the order rejecting application on 12.02.2025 after the amendment had come into force, as non-maintainable. We, therefore direct the Ld. CIT(E) to treat the application filed on 22.08.2024 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. 4. The Ld. DR supported the impugned action of the Ld. CIT(E) refusing to entertain the belated application filed by the assessee seeking approval u/s.80G of the Act.

5.

Heard Ld DR, and perused the material on record. It is noted that the assessee filed an online application on 28.09.2025 seeking approval under clause (ii) of first proviso to section 80G(5) of the Act. The Ld. CIT(E) has rejected the application as not maintainable on the ground that the assessee has not filed the application before September 2024 (i.e. 6 months prior to the expiry of the period of provisional approval). In this regard, it is noted that Clause (iv) has now been inserted into the 1st Proviso to Section 80G(5) of the Finance Act, 2024 with effect from 01.10.2024 to enable the assessee to apply for approval u/s.80G(5) at any time after commencement of its activity. Memorandum explaining the

ITA 2846 /Chny/2026 (AY 2025-26) Sri Nagalakshmi Educational Trust :: 5 :: provisions of the Finance Bill, 2024, has noted that 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. As observed by the Co-ordinate Bench of this Tribunal in the case of Aalayam (supra), that such a provision is disjoint from clause (iii), which governed the earlier timeline. However, the Ld. CIT(E) has passed impugned order on 28.03.2026 after the amendment had come into force on an application filed by the assessee on 28.09.2025. as non- maintainable, which action can’t be countenanced. We therefore, direct the Ld. CIT(E) to treat the application filed by the assessee on 28.09.2025 as having been filed under Clause (iv)(B) of the 1st Proviso to Section 80G(5) and decide in accordance to law, after hearing the assessee. Needless to say, assessee to participate and file documents called for by Ld CIT(E).

6.

In this result, the appeal of the assessee is allowed for statistical purposes.

Order pronounced on the 12th day of October 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 2846 /Chny/2026 (AY 2025-26) Sri Nagalakshmi Educational Trust :: 6 :: चे�नई/Chennai, �दनांक/Dated: 12th October, 2026. YS YASHVIR Digitally signed by YASHVIR SINGH SINGH Date: 2026.10.16 10:48:36 +05'30' 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

More judgments on Section 80G(5)

All 2,236 judgments and leading authorities on Section 80G(5) →

Recent GST High Court judgments

Search GST case law →