SIDDHAR SRI BALASUBRAMANIA SWAMIGAL TRUST,KARUR vs. CIT(EXEMPTIONS), CHENNAI

1. This is an appeal preferred by the assessee-Trust against the order of the Learned Commissioner of Income Tax (Exemptions), (hereinafter referred to as ‘Ld.CIT(E)‘), Chennai, dated 24.09.2025, rejecting the application filed by the Trust seeking approval under clause (iii) of first proviso to sub-section (5) of Section 80G of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act‘).

The assessee-Trust filed its application dated 31.03.2025, in Form No.10AB under clause (iii) of first proviso to sub-section (5) of Section 80G of the Act. The Ld. CIT(E) noted the CBDT Circular No.7/2024 dated 25.04.2024, and was of the view that the Trust was required to file its application for approval on or before 30.06.2024 and since, the assessee filed the ibid application only on 31.03.2025, with a delay of ‘181’ days, he held the application to be not maintainable and rejected the same.

Assailing the action of the Ld.CIT(E), the Ld.AR 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 pleaded 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.