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Facts
The assessee trust applied for approval under Section 80G on 27.12.2024, which was rejected by the CIT(E) as time-barred, citing a deadline of 30.06.2024 as per CBDT Circular No. 7/2024. The assessee argued that a new provision, clause (iv) of the first proviso to Section 80G(5) effective from 01.10.2024, allowed applications at any time after commencement of activities.
Held
The Tribunal held that the CIT(E) should consider the application filed on 27.12.2024 under the newly inserted clause (iv)(B) of the first proviso to Section 80G(5) of the Act, as it became effective from 01.10.2024. The application was rejected by the CIT(E) after this amendment took effect.
Key Issues
Whether the rejection of the assessee's application for Section 80G approval as time-barred was justified, given the recent amendment to Section 80G(5) allowing applications at any time post-commencement of activities.
Sections Cited
80G(5), 80G
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, ‘C’ BENCH: CHENNAI
Before: SHRI MANU KUMAR GIRI & SHRI AMITABH SHUKLA
आदेश / O R D E R
PER MANU KUMAR GIRI, JM:
The captioned appeal filed by the assessee is directed against order of the Ld. Commissioner of Income Tax (Exemption), Chennai, [‘CIT(E)’ in short] dated 28.04.2025 rejecting the application filed by the assessee dated 27.12.2024 in Form No.10AB under clause (iii) of first proviso to section 80G(5) of the Income Tax Act, 1961 ("the Act" in short) seeking approval u/s.80G of the Income Tax Act, 1961 (hereinafter “the Act”).
/Chny/2025 (AY 2024-25) Ideal Educational Trust :: 2 ::
The brief facts of the case are that the assessee trust though established on 24.08.2007 vide its trust deed but has obtained provisional approval u/s 80G from CPC on 31.05.2022 in Form 10AC for the period from AY 2023-24 to AY 2025-26. The assesse trust has filed (with delay of 87 days) an online application dated 27.12.2024 in Form 10AB seeking approval under clause (iii) of first proviso to sub-section (5) of section 80G of the Income Tax Act, 1961 (‘Act’ in short). The CIT (Exemptions) has passed his order in Form 10AB rejecting the application u/s.80G, stating that there is no mandatory provision in the Act to condone the delay in filing Form 10AB seeking approval u/s.80G as per the Finance Act, 2024.
The solitary issue 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.
The assessee applied on 27.12.2024 in Form No. 10AB, pursuant to clause (iii) of the first proviso to sub-section (5) of Section 80G of the Act. The Learned CIT(E) denied the application on the basis that the trust was obligated to submit the application by 30.06.2024, as per CBDT Circular No. 7/2024 dated 25.04.2024, but it was submitted on 27.12.2024, resulting in a delay of few months. Consequently, the Ld.CIT(E) deemed the application to be non-maintainable.
The Ld. Authorized Representative (AR) of the assessee has highlighted that the assessee applied in accordance with clause (iii) of the first proviso to sub-section (5) of Section 80G of the Act. According to the previous regulations, the application needed to be submitted by September 2023, which is six months before the conclusion of the provisional approval period that ends on 31.03.2024. Following this, the CBDT released Circular No.7/2024 on 25.04.2024, which extended the /Chny/2025 (AY 2024-25) Ideal Educational Trust deadline for submitting the application to 30.06.2024. The Ld. AR further noted that Section 80G has been amended to include clause (iv) in the first proviso to Section 80G(5), now permitting an assessee that has initiated its activities to apply for approval at any time post- commencement. Consequently, it was asserted that the assessee’s application should be evaluated under clause (iv)(B) of Section 80G(5) of the Act. The Ld. AR also referenced the Memorandum that elucidates the provisions of the Finance Bill, 2024, which proposed the insertion of clause (iv) to streamline the timeline for submitting the application for approval, allowing for submission at any time after the initiation of activities. In light of this amendment, the Ld.AR prayed that the approval be granted effective from 01.10.2024, which is the date when the amended provisions under clause (iv) of Section 80G(5) take effect. The ld. AR also referred the order of the co-ordinate Bench of Tribunal in the case of Aalayam Vs The CIT(E) dated 25.07.2025 and order of the Mumbai Bench of the Tribunal in the case of Chetana Vs CIT(E) [2025] 176 taxmann.com 713 (Mumbai-Trib).
Per contra, the Ld. Departmental Representative (DR), has relied on the impugned order of the ld.CIT(E) and pleaded that assessee can now file fresh application as per the amended provision under clause (iv)(B) of Section 80G(5).
We have considered the rival submissions, perused the order of the co- ordinate Bench of Tribunal in the case of Aalayam Vs The CIT(E) referred supra and reviewed the materials available on the record. The assessee applied under clause (iii) of the first proviso to sub-section (5) of Section 80G of the Act, seeking approval under section 80G of the Act on 27.12.2024. The Ld. CIT(E) rejected the application as not maintainable, citing that the assessee did not file the application before 30.06.2024, as /Chny/2025 (AY 2024-25) Ideal Educational Trust stipulated in CBDT Circular No.7/2024 dated 25.04.2024. However, it is important to note that clause (iv) has been added to the first proviso to Section 80G(5) by the Finance Act, 2024, effective from 01.10.2024, allowing the assessee trust to apply for approval under section 80G(5) at any time following the commencement of its activities. This new provision is separate from clause (iii), which governed the previous timeline. The Ld. CIT(E) issued the order rejecting the application on 28.04.2025, after the amendment had taken effect, deeming it non-maintainable. Therefore, we direct the Ld.CIT(E) to consider the application submitted on 27.12.2024 as filed under clause (iv)(B) of the first proviso to Section 80G(5) and to make a decision in accordance with the law. In light of the above and respectfully following the order of the co-ordinate Bench of Tribunal in the case of Aalayam Vs The CIT(E), the appeal submitted by the assessee is allowed for statistical purposes only.
In the result, the appeal filed by the assessee is allowed for statistical purposes.