MAHARAJAPURAM SANTHANAM FOUNDATION,CHENNAI vs. COMMISSIONER OF INCOME TAX (EXEMPTIONS), CHENNAI

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ITA 2198/CHNY/2025Status: DisposedITAT Chennai30 October 2025AY 2025-26Bench: SHRI ABY T. VARKEY (Judicial Member), SHRI JAGADISH (Accountant Member)1 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 the CIT(E) should decide the application on its merits, considering the amended provisions of Section 80G(5). The rejection solely on the ground of maintainability was set aside.

What were the facts?

The assessee filed an application for approval under Section 80G on 17.12.2024. The CIT(E) rejected the application as not maintainable, stating it was filed after the due date of 30.06.2024. The assessee argued that a recent amendment allowed applications to be filed anytime after commencement of activities.

What were the issues?

Whether the application for approval under Section 80G, filed after the previously stipulated due date but after an amendment allowing applications at any time, is maintainable.

Which sections of the Income-tax Act were involved?

Section 80G,Section 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

Hearing: 23.10.2025Pronounced: 30.10.2025

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 10.06.2025 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.

1.

1. 3. The assessee had filed an application dated 17.12.2024 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) 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 17.12.2024, with a delay of 170 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 (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 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).

6.

We have heard the rival submissions, and perused the materials available on record. The assessee had filed an application dated 17.12.2024 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 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 10.06.2025 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.

7.

In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced on 30th day of October, 2025 at Chennai.

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