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Facts
The assessee filed an application for approval under Section 80G on 04.11.2024, which was rejected by the CIT(E) as not maintainable because it was filed after the due date of 30.06.2024, as per CBDT Circular No.7/2024.
Held
The Tribunal noted that Section 80G was amended by the Finance Act, 2024, inserting clause (iv) which allows applications anytime after commencement of activities, effective from 01.10.2024. Since the CIT(E)'s order was passed after the amendment came into force, the Tribunal directed the CIT(E) to decide the application on merit.
Key Issues
Whether the rejection of an application for approval under Section 80G due to a delay in filing, when the relevant amendment allowing applications at any time came into force before the order was passed, is valid.
Sections Cited
80G, 11AA
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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 20.06.2025 seeking approval u/s.80G of the Income tax Act, 1961 (hereinafter “the Act”).
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.
1. Care Earth Trust :- 2 -: 3. The assessee had filed an application dated 04.11.2024 in Form No. 10AB under Rule 11AA of the Income Tax Rules, 1962 seeking approval under clause (iv) – Item B of the first proviso to sub-section (5) of Section 80G of the Act. Subsequently, the assessee has requested to change the section to clause (iii) of first proviso to sub- section (5) of Section 80G of the Act as it has obtained order for provisional approval u/s. 80G in Form 10AC on 31.08.2021. However, 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 04.11.2024, with a delay of 127 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 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 Care Earth Trust :- 3 -: 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
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).
We have heard the rival submissions, and perused the materials available on record. The assessee had filed an application dated 04.11.2024 in Form No. 10AB under Rule 11AA of the Income Tax Rules, 1962 seeking approval under clause (iv) – Item B of the first proviso to sub-section (5) of Section 80G 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 30.06.2024 as provided Care Earth Trust :- 4 -: 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. The Ld CIT(E) has passed the order rejecting application on 20.06.2025 after the amendment had come into force, as not maintainable. We, therefore direct the Ld. CIT(E) to decide the application on merit in accordance to the clause (iv) of the first proviso to Section 80G(5). In view of the above, the appeal filed by the assessee is allowed for statistical purposes only.
In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced on 30th day of October, 2025 at Chennai.