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Facts
The assessee, a public charitable trust, had obtained provisional approval under Section 80G. They were required to file for regular approval by a certain date but filed Form 10AB late by 142 days. The CIT(E) rejected the application as not maintainable.
Held
The Tribunal held that although the application was filed late under the original clause (iii), an amendment to the Act made the assessee eligible under the new clause (iv). The CIT(E) was directed to treat the application as filed under the amended provision and decide on merits.
Key Issues
Whether a late application for approval under Section 80G can be considered if an amendment to the Act provides eligibility after the original due date?
Sections Cited
80G, 80G(5)(iii), 10
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Income Tax Appellate Tribunal, ‘B’ BENCH, CHENNAI
Before: SHRI GEORGE GEORGE KAND SHRI JAGADISH
आदेश /O R D E R
PER GEORGE GEORGE K, VICE PRESIDENT:
This appeal filed by the assessee is directed against the order of Commissioner of Income Tax (Exemption), Chennai dated 10.06.2025, rejecting Form No.10AB filed for seeking approval under section 80G of the Income Tax Act, 1961 (hereinafter the ‘Act’).
2. Brief facts of the case are as follows: The assessee is a public charitable trust established on 17.09.2021 and is engaged in carrying out charitable activities as per the objects enshrined in its Trust Deed. The assessee trust had obtained provisional approval u/s.80G of the Act vide Form 10AC dated 27.10.2021 valid for the period from assessment years 2022-23 to 2024-25. As per the provisions of section 80G(5)(iii) of the Act, the assessee trust was required to file Form 10AB for regular approval atleast six months prior to the expiry of provisional registration or within six months of the commencement of its activities, whichever is earlier. The assessee trust ought to have applied for approval u/s.80G in Form 10AB on or before 30th September 2023 or extended due date 30th June, 2024. However, the assessee trust filed Form 10AB on 19.11.2024 with a delay of 142 days. Therefore, the CIT(E) rejected the assessee’s application dated 19.11.2024 in Form 10AB seeking approval u/s.80G of the Act as not maintainable.
Aggrieved by the order of the CIT(E), the assessee filed the present appeal before the Tribunal. Before us, the Ld.AR for the assessee submitted that assessee has filed a petition for condonation of delay in filing Form 10AB before CIT(E) on 10.02.2025. However, the CIT(E) had rejected the application seeking approval u/s.80G of the Act, since it was filed after the expiry of due date and stated that there is no mandatory provision in the Act to condone the delay.
The Ld.DR supported the order of the CIT(E).
We have heard rival submissions and perused the material on record. On identical facts, the Chennai Bench of the Tribunal in the case of Jodhpur Charitable Trust vs. CIT(E) in order dated 12.09.2025, had restored the issue to the file of the CIT(E) by observing as under:- 8. We find that the application has been made under clause (iii) of the proviso to sub section 5 of section 80G, which reads as under, “where the institution or fund has been provisionally approved, at least six months prior to expiry of the period of the provisional approval or within six months of commencement of its activities, whichever is earlier”. It can be seen that w.e.f. 01.10.2024 vide Finance(No.2) Act, 2024, Clause (iv) reads as under, “(in any other case) where activities of the institution or fund have— (A) not commenced, at least one month prior to the commencement of the previous year relevant to the assessment year from which the said approval is sought; (B) commenced (and where no income or part thereof of the said institution or fund has been excluded from the total income on account of applicability of sub-clause (iv) or sub- clause (v) or sub- clause (vi) or sub-clause (via) of clause (23C) of section 10 or section 11 or section 12 for any previous year ending on or before the date of such application), at any time after the commencement of such activities: (the words that are struck off are omitted vide Finance (No.2) Act, 2024.)”
9. The Legislature, in its wisdom had chosen to omit the rigorous conditions that originally stood prior to the amendment. It can be seen that it is an enabling amendment, wherein any charitable institution, where its activities have commenced and where, even if it had claimed income exemptions specific to charitable institution, can still apply for registration u/s.80G(5) of the Act. Accordingly, it permits any assessee, which had missed the timeline specified under clause (iii), to apply under clause (iv) sub clause (B) of the 1st proviso to sub-section 5 of Section 80G of the Act. Consequent to this amendment, if the assessee applies under clause (iv) today, subject to the fulfilment of other conditions, would not be ineligible for the approval, owing to the limitation of time which is specific to clause (iii). Albeit, at the time of applying for registration on 02.09.2024, the benefit of (iv) was not available to the assessee and the only clause, under which it could apply, was clause (iii), yet, post the amendment from 01.10.2024, it is eligible to apply under clause (iv).
With this observation, in the interest of justice, we direct the ld.CIT(E) to treat the application made on 02.09.2024 under clause (iii) of 1st proviso to subsection 5 of section 80G, as an application made under sub- clause (B) of clause (iv) of 1st proviso to sub-section 5 of section 80G of the Act and verify all other conditions stipulated under the Act for grant of registration u/s.80G of the Act and accordingly dispose of the application on merits, in accordance with law. For the purpose of the time limit within which the application must be disposed of by the ld.CIT(E), as per 4th proviso to section 80G(5) of the Act, the starting point must be the date on which this order is served to the revenue.
In the result the appeal of the assessee is allowed for statistical purposes.”
In light of the aforesaid order of the Tribunal, we restore the matter to the file of the CIT(E). The CIT(E) is directed to treat the application made on 19.11.2024 under clause (iii) of 1st proviso to subsection 5 of section 80G, as an application made under sub-clause (B) of clause (iv) of 1st proviso to sub-section 5 of section 80G of the Act and verify all other conditions stipulated under the Act for grant of registration u/s.80G of the Act and accordingly dispose of the application on merits, in accordance with law. For the purpose of the time limit within which the application must be disposed of by the ld.CIT(E), as per 4th proviso to section 80G(5) of the Act, the starting point must be the date on which this order is served to the revenue. It is ordered accordingly.
In the result, the appeal filed by the assessee is allowed for statistical purposes.
Order pronounced in the open court on 29th October, 2025 at Chennai.