MOTHER LEELA TRUST,NEYYOOR vs. CIT ( EXEMPTION ) CHENNA, CHENNAI

ORDER \nPER AMITABH SHUKLA, A.M :\nThis appeal is filed by the assessee against the order bearing DIN\n& Order No.ITBA / EXM / F / EXM44 / 2025-26 / 1075604009(1) dated\n11.04.2025 of the Learned Commissioner of Income Tax(Exemption)\n[herein after “CIT(E), Chennai, for the assessment year 2025. The\nreference to the word \"Act\" in this order hereinafter shall mean the\nIncome Tax Act, 1961 as amended from time to time.\n2.0\nThe only issue contested by the appellant assessee, through its\ngrounds of appeal, is the rejection of its application for grant of exemption\nu/s 80G by the Ld.CIT(E). The application of the assessee was rejected\nfor having been filed late i.e beyond the timeline, including extended\ntimeline, prescribed by the Revenue authorities.\n3.0\nIt is the case of the appellant that the delay cannot come in the\nway of its eligibility for grant of exemption u/s 80G. The Ld.Counsel for\nthe assessee submitted that application dated 23.11.2024 in Form-10AB\nrequesting for final registration u/s 80G(5)(iii) was made to the Revenue\nauthorities. It was submitted that vide order 11.04.2025 the Ld.CIT(E)\nhas rejected the application of the assessee. While concluding the\nsame, the Ld.CIT(E) postulated that the impugned application was due to\nhave been filed on 30.09.2024 and has the same was filed on 23.11.2024\nand hence it was liable for rejection. It was also concluded that the\nLd.CIT(E) did not have any authority to condone the delay.\n4.0\nThe Ld.Counsel for the assessee vehemently argued against the\ndecision of Revenue Authorities in rejecting its application. It was\nsubmitted that the Ld.CIT(E) has inherent powers to condone the delay\nwhich is on par with such powers available qua grant of registration u/s\n12A. The Ld.Counsel simultaneously also argued that this tribunal also\npossesses powers to condone the delay in applications filed after the due\ndate and direct Ld.CIT(E) to grant registration after condoning the delay.\nThe Ld.Counsel said that the delay of 53 days may be condoned. It was\nargued that grave injustice is being caused by the denial of the\nregistration u/s 80G. The Ld.Counsel also drew our attention to the\namended provisions of the Finance Act as per clause-(iv) of section 80G\nand that in consonance thereof the Ld.CIT(E ) may be directed to\ncondone the delay and grant registration u/s 80G. In support of its\ncontentions, the Ld.Counsel drew support from orders of this tribunal,\ndirecting Ld.CIT(E ) to condone the delay and consider grant of\nregistration u/s 80G.\n5.0\nPer contra, the Ld.DR relied upon the order of lower authorities.\nIt was argued that the provision of law is clear mandating grant of\nregistration u/s 80G to applications filed within prescribed timelines.\n6.0\nWe have heard the rival submissions in the light of material\navailable on records. We have noted that the principal issue is as to\nwhether the delay caused by the assessee in filing of its application u/s\n80G for grant of registration can be condoned and registration be granted\n??? We have also noted that CBDT through its instructions has\naccorded powers to the CIT(E) for condoning the delay in matters\nconcerning 12A registrations. We have noted that while doing so,\nCBDT had primarily examined the issue of “continuing hardship\" to the\ntaxpayers in filing timely applications and thus being deprived of\nregistration on such technical deficiencies. Registrations under section\n12A and 80G are closely inter-linked and or rather supplementing their\nindependent objectives. The present issue is also one of genuine\nhardships and therefore there cannot be a distinction within the same\nprovision without bringing any exception. The provisions of 80G are for\nthe benefit of donors who are donating amounts of money to Charitable\nTrusts, engaged in selfless public service, for claiming exemption in the\nReturns of Income. We have noted that this issue has been extensively\ndealt by a Hon'ble Coordinate bench of this tribunal in the case of CIT-\n1982 Charitable Trust as at 160 taxmann.com 475. Further, in the case\nof Society for Community Organization and Peoples Education(SCOPE)\nin dated 03.10.2025 it was observed that :-\n"......7.0 We have heard the rival submissions in the light of material available on\nrecords. We have noted that the principal issue is as to whether the delay caused by\nthe assessee in filing of its application u/s 80G for grant of registration can be\ncondoned and registration be granted ???. We have also noted that CBDT through\nits instructions has accorded powers to the CIT(E) for condoning the delay in matters\nconcerning 12A registrations. We have noted that while doing so, CBDT had\nprimarily examined the issue of “continuing hardship” to the taxpayers in filing timely\napplications and thus being deprived of registration on such technical deficiencies. Registrations under section 12A and 80G are closely inter-linked and or rather\nsupplementing their independent objectives. The present issue is also one of\ngenuine hardships and therefore there cannot be a distinction within the same\nprovision without bringing any exception. The provisions of 80G are for the benefit\nof donors who are donating amounts of money to Charitable Trusts, engaged in\nselfless public service, for claiming exemption in the Returns of Income. We have\nnoted that this issue has been extensively dealt by a Hon'ble Coordinate bench of this\ntribunal in the case of CIT-1982 Charitable Trust as at 160 taxmann.com 475.\n7.8\nAfter hearing the arguments of Id. counsel for the assessee and\nId. CIT-DR as noted above, we find from the facts that the timeline\nprescribed for filing Form No.10AB for registration u/s.12A of the Act in\nthe case of assessee trust has been extended up-to 30.09.2023 after\nconsidering the genuine hardship faced by charitable institutions vide\nvarious CBDT circulars and finally, vide Circular No.6/2023 dated\n24.05.2023. Similarly, the timeline prescribed for filing Form No.10A\nfor recognition u/s.80G of the Act was also extended up-to 30.09.2023\nby the same circular for trusts filing registration under clause (i) to first\nproviso to section 80G(5) of the Act. But the above extension was not\nextended beyond 30.09.2022, unlike other forms which were extended\nup to 30.09.2023 to the disputed forms namely Form No.10AB for\nrenewal of recognition u/s.80G(5) of the Act under clause (iii) of the\nfirst proviso to section 80G(5) of the Act. Once, the CBDT has extended\nthe timeline for filing Form No.10AB for recognition u/s.12A of the Act\nand also for filing Form No.10A for recognition u/s.80G of the Act\nextended up to 30.09.2023 for trusts filing registration under clause (i)\nof first proviso to section 80G(5) of the Act, we find no difference in\ncontinuing hardship as recognized by CBDT even in filing Form No.10AB\nfor renewal of recognition u/s.80G of the Act under clause (iii) of first\nproviso to section 80G(5) of the Act. In our view, this being a genuine\nhardship case, which is recognized by Revenue or CBDT by issuing a\ngeneral circular, we are of the view that this specific provision of clause\n(iii) to first proviso to section 80G(5) cannot be excluded and or it has\nnot been the intention of the CBDT while issuing the circular. There\ncannot be a distinction within the same provision without bringing out\nany exception and even this provision is for the benefit of the donors\nwho are donating money to the charitable trusts for claiming exemption\nin their returns of income. In our view, we agree with the argument of\nId. counsel for the assessee that the timeline prescribed under clause\n(iii) of first proviso to section 80G(5) of the Act should be treated as\ndirectory and not mandatory especially considering the transitional\nnature of the amendment as brought out by the taxation of other laws\n(relaxation and amendment of certain provisions) act 2020 for bringing\nnew regime. Hence, in our view, the CIT(Exemptions) should not have\nrejected the assessee's application in Form No.10AB only for this\ntechnical reason. We are of the view that the intention of CBDT in its\ncircular clearly reflects their mind that once the timeline prescribed for\nfiling Form No.10AB for recognition u/s.12A of the Act has been\nextended up to 30.09.2023, the same may be treated as extended for\nforms\nnamely\nForm\nNo.10AB\nfor\nrenewal\nof\napproval/recognition/registration under clause (iii) of first proviso to\nsection 80G of the Act also. Hence, we accept the plea of assessee and\nagree with the arguments of Id. counsel for the assessee and remand\nthe matter back to the file of the CIT(Exemption) to decide the issue on\nmerits. Hence, the order of CIT(Exemption) on this issue is set aside\nand matter is remanded back to the file of the CIT(Exemption) for re-\ndeciding the issue on merits as per law. The appeal of the assessee is\nallowed for statistical purposes......”\n7.0\nWe have further noted that another Coordinate Bench of this\ntribunal in ITA No.1012/Chny/2025 dated 25.07.2025 in the case\nof Aalayam held as under:-\n"....