M/S. MADRAS CITY OPHTHAMOLOGICAL ASSOCIATION,CHENNAI vs. CIT, EXEMPTIONS,, CHENNAI
Facts
The assessee, a society conducting eye care activities, had its application for renewal of registration under Section 80G rejected by the CIT(E). The rejection was based on the assessee failing to apply before a certain date, indicating a delay.
Held
The Tribunal held that the assessee's application should have been examined in light of clause (iv)(B) of the first proviso to Section 80G(5) of the Act, which allows application at any time after commencement of activities. This provision was introduced by the Finance Act, 2024, effective from 01.10.2024.
Key Issues
Whether the rejection of the assessee's application for renewal of registration under Section 80G was justified, considering the amended provisions allowing applications at any time post-commencement of activities.
Sections Cited
80G
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, ‘B’ BENCH: CHENNAI
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 24.09.2025.
The assessee is a society and conduct eye care activities. The assessee was granted provisional registration u/s. 80G on 24.03.2023. Subsequently, the assessee filed Form-10AD on 28.03.2025 u/s. 80G(5)(iv) 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
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there is a delay in assessee's case. Aggrieved, the assessee is in appeal before the Tribunal.
We have heard rival submissions and perused the materials on the record. The assessee submitted an application under clause (ii) of the first proviso to subsection (5) of Section 80G of the Act, seeking approval under section 80G of the Act on 28.03.2025. The Ld. CIT(E) rejected the application as not maintainable, citing that the assessee did not file the application before 30.09.2024, 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. In the present case, the order rejecting the assessee’s application was passed by the Ld. CIT(E) after the amended provisions had come into force. In our considered view, the application filed by the assessee on 28.03.2025 ought to have been examined in the light of clause (iv)(B) of the first proviso to section 80G(5) of the Act.
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:- “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
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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). Accordingly, we set aside the impugned order and direct the Ld. CIT(E) to treat the application dated 28.03.2025 as an application filed under clause (iv)(B) of the first proviso to section 80G(5) of the Act and to decide the same in accordance with law. It is ordered accordingly.
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) लेखा लेखा सद�य लेखा लेखा सद�य सद�य /Accountant Member सद�य �याियक �याियक सद�य �याियक �याियक सद�य सद�य / Judicial 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
