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Facts
The assessee filed an application for approval under Section 80G(5) of the Income Tax Act, 1961, which was rejected by the CIT(E) due to a delay in filing. The appeal was filed with a delay of 39 days, for which the assessee submitted an affidavit.
Held
The Tribunal condoned the delay and admitted the appeal for adjudication. It noted that a new clause (iv) was inserted into the first proviso of Section 80G(5) by the Finance Act, 2024, allowing applications at any time after commencement of activities. The CIT(E)'s rejection was after this amendment came into force.
Key Issues
Whether the delay in filing the application for approval under Section 80G(5) is condonable, especially in light of a subsequent amendment to the Act.
Sections Cited
80G(5) of the Income Tax Act, 1961
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Before: Shri S.S. Viswanethra Ravi & Ms. S. Padmavathy
O R D E R
PER S.S. VISWANETHRA RAVI, JUDICIAL MEMBER:
This appeal filed by the assessee is directed against the order dated 09.06.2025 of the ld. Commissioner of Income Tax (Exemption), Chennai in rejecting the application filed in Form 10AB seeking approval under clause (iii) of first proviso to section 80G(5) of the Income Tax Act, 1961 [“Act” in short].
We find that this appeal is filed with a delay of 39 days. The assessee filed an affidavit for condonation of delay stating the reasons.
Upon hearing both the parties and on an examination of the said affidavit, in the interest of justice, we condone the delay and admit the appeal for adjudication.
We note that the assessee filed online application dated 06.12.2024 in Form 10AB seeking approval under clause (iii) of first proviso to section 80G(5) of the Act. The ld. CIT(E) observed that the assessee trust ought to have applied for approval under section 80G of the Act in Form 10AB on or before September, 2024 [i.e., 6 months prior to the expiry of the period of provisional approval], but, however, the assessee trust filed application belatedly on 06.12.2024. By reproducing relevant provisions of section 80G(5)(ii) of the Act at page 5 & 6 of the impugned order, the ld. CIT(E) rejected the application filed in Form 10AB on 06.12.2024. Aggrieved by the order of the ld. CIT(E), the assessee is in appeal before us.
The ld. AR Ms. R. Sridevi, CA, submits that by insertion of clause (iv) into the first proviso to section 80G(5) of the Act by the Finance Act, 2024 w.e.f. 01.10.2024, the assessee can apply for approval under section 80G(5) of the Act at any time after commencement of its activities and by placing reliance on the decision of this Tribunal in the case of Aalayam v. CIT(E) in dated 25.07.2025, the ld. AR prayed to remand to the matter to the file of the ld. CIT(E).
The ld. DR Shri C.N. Bipin, CIT did not object to the submissions of the ld. AR.
We have heard both the parties and perused the material available on record. We note that the ld. CIT(E) rejected the application filed in Form 10AB on 06.12.2024 by observing that the assessee trust ought to have applied for approval under section 80G of the Act in Form 10AB on or before September, 2024 [i.e., 6 months prior to the expiry of the period of provisional approval]. However, it is noted that clause (iv) has now been inserted into the first proviso to section 80G(5) of the Act by the Finance Act, 2024, w.e.f 01.10.2024 to enable assessee trust to apply for approval u/s 80G(5) 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 09.06.2025 after the amendment had come into force, as non maintainable. We find, on same identical facts, the Coordinate Bench of this Tribunal also taken similar view in the case of Aalayam v. CIT(E) (supra). We, therefore direct the ld. CIT(E) to treat the application filed on 06.12.2024 as having been filed under clause (iv)(B) of the first proviso to section 80G(5) of the Act and decide in accordance with the law. Thus, the appeal filed by the assessee is allowed for statistical purposes.
In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced on 19th February, 2026 at Chennai.