M/S. MADRAS CITY OPHTHAMOLOGICAL ASSOCIATION,CHENNAI vs. CIT, EXEMPTIONS,, CHENNAI

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 Consortium for Technical Education :- 2 -: 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 Consortium for Technical Education :- 3 -: