M/S. CONSORTIUM FOR TECHNICAL EDUCATION,THENI vs. CIT, EXEMPTIONS,, CHENNAI
Facts
The assessee, a public charitable trust with provisional registration under Section 80G, applied for renewal but its application was rejected by the CIT(E) due to a delay of 176 days and non-compliance with the application deadline stipulated by CBDT Circular No.7/2024 dated 25.04.2024. Aggrieved by this rejection, the assessee filed an appeal before the Tribunal.
Held
The Tribunal noted that the Finance Act, 2024, effective from 01.10.2024, inserted clause (iv) into the first proviso to Section 80G(5), allowing applications for approval at any time after the commencement of activities. Since the CIT(E)'s rejection order was issued after this amendment took effect, the Tribunal directed the CIT(E) to reconsider the application under the newly inserted clause (iv)(B) of the first proviso to Section 80G(5) in accordance with the law.
Key Issues
Whether an application for renewal of 80G registration, rejected due to delay under previous timelines, should be reconsidered by the CIT(E) in light of a subsequent amendment (Finance Act, 2024) introducing a provision allowing applications at any time.
Sections Cited
Section 80G, Section 80G(5), first proviso to Section 80G(5) clause (iii), first proviso to Section 80G(5) clause (iv), first proviso to Section 80G(5) clause (iv)(B), Finance Act, 2024, CBDT Circular No.7/2024
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Income Tax Appellate Tribunal, B BENCH: CHENΝΑΙ
Before: MS. PADMAVATHY.S & SHRI MANU KUMAR GIRI
आदेश / O R D E R
PER PADMAVATHY.S, A.M: This appeal by the assessee is against the order of the Commissioner of Income Tax (Exemptions), Chennai (in short "CIT(E)") dated 22.09.2025.
The assessee is a public charitable trust and undertakes conferences, seminars and hands on training free of cost in the field of artificial intelligence, cyber security, capacity building etc. The assessee also collaborates with State Departments of Technical Education and Skill Development Corporations in this regard. The assessee was granted provisional registration u/s. 80G on 24.03.2023. Subsequently, the assessee
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filed Form-10AB on 26.03.2025 u/s. 80G(5)(i) for renewal of registration. The CIT(E) rejected the application stating that the assessee ought to have applied for approval u/s. 80G on or before 30.09.2024 and that there is a delay in assessee's case of 176 days. Aggrieved, the assessee is in appeal before the Tribunal.
We have heard rival submissions and perused the materials on the 3. record. The assessee submitted an application under clause (iii) of the first proviso to subsection (5) of Section 80G of the Act, seeking approval under section 80G of the Act on 28.09.2024. The Ld. CIT(E) rejected the application as not maintainable, citing that the assessee did not file the application before 30.06.2024, as 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 CIT(E) issued the order rejecting the application on 03.03.2025, after the amendment had taken effect, deeming it non- maintainable. Therefore, we direct the CIT(E) to consider the application submitted on 28.09.2024 as filed under clause (iv)(B) of the first proviso to Section 80G(5) and to make a decision in accordance with the law. It is ordered accordingly.
A similar view was taken by the Co-ordinate Bench of ITAT, Chennai in the case of M/s. Madras Chinmaya Seva Trust (supra). The relevant finding of the Tribunal reads as follows:-
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“6. We have considered the rival submissions, perused the order of the coordinate Bench of Tribunal in the case of Aalayam Vs The CIT(E) referred supra and reviewed the materials available on the record. The assessee submitted an application under clause (iii) of the first proviso to subsection (5) of Section 80G of the Act, seeking approval under section 80G of the Act on 30.09.2024. The Ld. CIT(E) rejected the application as not maintainable, citing that the assessee did not file the application before 30.06.2024, as 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 17.03.2025, after the amendment had taken effect, deeming it non-maintainable. Therefore, we direct the Ld.CIT(E) to consider the application submitted on 30.09.2024 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 VsThe CIT(E), the appeal submitted by the assessee is allowed for statistical purposes only.”
An identical view was also taken by the Co-ordinate Bench of the Tribunal in the case of Aalayam vs. CIT(E) (supra) and Mumbai Bench of the Tribunal in the case of Chetana vs. CIT(E), (supra).
In the result, the appeal filed by the assessee is allowed for statistical purposes.
Order pronounced on 29th day of January, 2026 at Chennai.
Sd/- Sd/- (मनु कुमार िग"र) (पदमावती यस) (Manu Kumar Giri) (Padmavathy.S) �याियक �याियक सद�य �याियक �याियक सद�य सद�य / Judicial Member सद�य लेखा लेखा सद�य लेखा लेखा सद�य सद�य /Accountant Member सद�य चे�नई/Chennai, �दनांक/Dated: 29th January, 2026. EDN, Sr. P.S
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आदेश क� �ितिल�प अ�े�षत/Copy to: 1. अपीलाथ�/Appellant 2. ��थ�/Respondent 3. आयकर आयु�/CIT, Chennai/Madurai/Coimbatore/Salem 4. िवभागीय �ितिनिध/DR 5. गाड� फाईल/GF
