Loading judgment…
Facts
The assessee filed an appeal against the order of the CIT(E) rejecting their application for approval under Section 80G. The rejection was based on the application being filed after the due date prescribed by a CBDT circular. There was a delay of 62 days in filing the appeal before the tribunal.
Held
The Tribunal held that a recent amendment to Section 80G(5) by the Finance Act, 2024, allows applications to be filed at any time after commencement of activities. Therefore, the CIT(E) was directed to treat the assessee's application as filed under the amended provision.
Key Issues
Whether the assessee's application for Section 80G approval, filed after the due date stipulated in a circular, could be considered valid in light of a subsequent amendment to the law.
Sections Cited
80G, 80G(5)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, ‘A’ BENCH: CHENNAI
Before: SHRI ABY T. VARKEY & SHRI JAGADISH
आदेश / O R D E R
PER JAGADISH, A.M : Aforesaid appeal filed by the assessee arises out of the order of Learned Commissioner of Income Tax (Exemptions), Chennai [hereinafter “CIT(E)”] dated 19.03.2025 seeking approval u/s.80G of the Income tax Act, 1961 (hereinafter “the Act”).
There is a delay of 62 days in filing the appeal by the assessee. The assessee has filed condonation petition/affidavit stating the GEO India Foundation :- 2 -:
reasons for delay in filing the appeal. We have considered the petition/affidavit of delay in filing the appeal and satisfied that there was sufficient cause for not filing the appeal within the prescribed time limit. Hence, the delay is hereby condoned.
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.
4. The assessee had filed an application dated 21.09.2024 in Form No.10AB under clause (iii) 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 before 30.06.2024, in view of CBDT Circular No.7/2024 dated 25.04.2024, but has filed it on 21.09.2024, with a delay of 83 days. The Ld CIT(E) held the application to be not maintainable.
The Learned Authorized Representative (AR) of the assessee has submitted that the assessee had filed an application under clause (iii) 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 GEO India Foundation :- 3 -:
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.
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).
GEO India Foundation :- 4 -:
We have heard the rival submissions, and perused the materials available on record. The assessee made an application under clause (iii) of first proviso to sub-section (5) of Section 80G of the Act seeking approval u/s. 80G of the Act on 21.09.2024. 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, w.e.f 01.10.2024 to enable assessee-trust to apply for approval u/s 80G(5) of the Act 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 19.03.2025 after the amendment had come into force, as not maintainable. We, therefore direct the Ld CIT(E) to treat the application filed on 21.09.2024 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.
GEO India Foundation :- 5 -:
In the result, the appeal filed by the assessee is allowed for statistical purposes.
Order pronounced on 30th day of October, 2025 at Chennai.