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Facts
The assessee filed an application for approval under Section 80G on 23.07.2024, which was rejected by the CIT(E) as not maintainable because it was filed after the due date of 30.06.2024. The CIT(E)'s order was passed after the insertion of a new clause (iv) into Section 80G(5) of the Act by the Finance Act, 2024.
Held
The Tribunal held that the new clause (iv) to Section 80G(5) allows applications to be filed at any time after commencement of activities, and this provision is distinct from the earlier timeline governed by clause (iii). Therefore, the application filed on 23.07.2024 should be considered under the new provision.
Key Issues
Whether an application filed after the extended due date, but after the amendment of Section 80G(5) of the Income Tax Act, 1961, allowing applications at any time, should be considered maintainable.
Sections Cited
80G, 80G(5)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, ‘D’ BENCH: CHENNAI
Before: SHRI SS VISWANETHRA RAVI & 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(A)”] dated 22.01.2025 seeking approval u/s.80G of the Income tax Act, 1961 (hereinafter “the Act”).
Sairam Charitable Trust :- 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. 3. The assessee had filed an application dated 23.07.2024 in Form No. 10AB under clause (iii) 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 23.07.2024, with a delay of 23 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. Sairam Charitable Trust :- 3 -:
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.
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).
Sairam Charitable Trust :- 4 -:
We have heard the rival submissions, and perused the materials available on record. The assessee made an application under clause (iii) of first proviso to sub-section (5) of Section 80G of the Act seeking approval u/s. 80G of the Act on 23.07.2024. 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. This provision is disjoint from clause (iii), which governed the earlier timeline. The Ld CIT(E) has passed the order rejecting application on 22.01.2025 after the amendment had come into force, as not maintainable. We, therefore direct the Ld CIT(E) to treat the application filed on 23.07.2024 as having been filed under clause (iv)(B) of the first proviso to Section 80G(5), and decide in accordance with the law. In view of the above, the appeal filed by the assessee is allowed for statistical purposes only.
Sairam Charitable Trust :- 5 -:
In the result, the appeal filed by the assessee is allowed for statistical purposes.
Order pronounced on 11th day of August, 2025 at Chennai.