COVER THE POOR,KANCHIPURAM vs. CIT EXMEPTIONS,, CHENNAI

ITA 3673/CHNY/2026Status: DisposedITAT Chennai07 October 20264 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the amendments brought about by the Finance Bill, 2024, particularly concerning the rationalization of timelines for Section 80G approval, are procedural in nature and beneficial. Therefore, these amendments should be applied retrospectively to all pending matters, including the present case. The Tribunal noted that while Section 12A of the Act confers condonation power on the Ld. CIT(E) for granting registration under Section 12AB, the legislature has rationalized the timelines for Section 80G approval, allowing it to be granted from the date of application. The judgment observed that the Memo to the Finance Bill, 2024, explicitly mentions that the second proviso lays down the procedure for processing Section 80G approval, reinforcing its procedural nature. Since the delay in filing the application was the only discrepancy pointed out by the Ld. CIT(E) and no other issues were raised, the Tribunal directed the office of the Ld. CIT(E) to grant approval under Section 80G to the assessee with effect from the date of filing the application, i.e., November 29, 2024. The grounds raised by the assessee were accordingly allowed.

What were the facts?

The assessee, Cover the Poor, filed an appeal against the order of the Commissioner of Income Tax (Exemptions) [CIT(E)], Chennai, dated April 11, 2025. The assessee had obtained provisional approval under Section 80G of the Income-Tax Act, 1961, for Assessment Years 2022-23 to 2024-25, which expired in the previous year relevant to AY 2024-25. The assessee was required to apply for regular approval in Form 10AB by September 30, 2023. However, the application was filed on November 29, 2024, with a delay of 152 days. The CIT(E) rejected the application for approval under Section 80G(5)(iii) due to this delay. The assessee also had provisional registration under Section 12A(1)(ac)(vi) and regular registration under Section 12AB(1)(b) obtained on April 11, 2025.

What were the issues?

1. Whether the order of the Ld. CIT (E) dated April 11, 2025, rejecting the application for approval under Section 80G of the Income-Tax Act, 1961, is erroneous, bad in law, and passed ignoring the facts and merits of the case, particularly concerning the delay in filing the application. 2. Whether clause (iv)(B) of the 1st proviso to Section 80G(5) of the Act entitles the appellant Foundation to apply for regular approval at any time after the commencement of its activities. 3. Whether the time-limit to file an application for approval under Section 80G(5) is directory and not mandatory. 4. Whether the timeline to file an application for approval under Section 80G is procedural and cannot impede substantive justice. 5. Whether the condonation power conferred on the Ld. CIT(E) for registration under Section 12AB of the Act by the Finance (No.2) Act, 2024, equally applies to approval under Section 80G of the Act. Assessee's Contentions: The assessee argued that the Ld. CIT(E) failed to appreciate that clause (iv)(B) of the 1st proviso to Section 80G(5) allows application at any time after commencement of activities. They contended that the time-limit for filing the application is directory, not mandatory, and procedural in nature, thus should not obstruct substantive justice. The assessee also argued that the condonation power for Section 12AB registration should extend to Section 80G approval. The assessee relied on the Finance (No.2) Act, 2024 amendments and the principle that procedural provisions, especially beneficial ones, should be applied retrospectively to pending matters. Revenue's Contentions: The judgment does not record specific contentions from the Revenue.

Which sections of the Income-tax Act were involved?

Section 80G,Section 80G(5),Section 80G(5)(iii),Section 12A,Section 12A(1)(ac)(vi),Section 12AB,Section 12AB(1)(b)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, ‘C’ BENCH: CHENNAI

Before: HONOURABLE GEORGE GEORGE K. & SHRI GAGAN GOYAL

Hearing: 25.08.2026Pronounced: 07.10.2026

PER GAGAN GOYAL, AM: This is an appeal preferred by the assessee against the order of Ld.

Commissioner of Income Tax (E), (hereinafter referred to as the ‘Ld. CIT (E)’), Chennai dated 11.04.2025. GROUDS OF APPEAL A.

For that the order of the Ld. Commissioner of Income-Tax (Exemptions) Chennai, [CIT (E)] under section 80G(5) of the Income-Tax Act, 1961 (Act) dated 11.04.2025 is e

The order continues below.

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