M/S. VEDA AGAMA HERITAGE TRUST,TIRUCHIRAPPALLI vs. ACIT(EXEMPTIONS), CHENNAI, CHENNAI

The assessee is a charitable trust established in 18.07.2022 with an object to preserve and promote the vedic cultural heritage of India through educational spiritual and charitable initiatives and provide donations to pursue vedic practices. The assessee has obtained provisional registration u/s.80G on 07.12.2022 for a period from the said date to AY 2025-26. The assessee vide

We have heard the parties and perused the material available on record. With regard to the wrong mentioning of sub-clause we are of the view that the incorrect mention of the relevant clause, admittedly due to inadvertence, constituted only a curable defect and not an illegality. The CIT (E) could have afforded an opportunity to the assessee to rectify the defect or could have treated the application under the appropriate clause but instead rejected the application on technical grounds. Accordingly we direct the CIT(E) to consider the application as filed under the correct sub clause.

The next ground for rejection is that it was not filed within the due date prescribed u/s.80G(5)(iii) of the Act. The relevant observations of the CIT(E) are extracted below – “ 4.2 Delay in filing application: The applicant society had filed its application seeking approval u/s 80G(5) in Form 10AB on 26.03.2025 u/s 80G(5)(ii). But, the applicant trust had obtained provisional approval from CPC 07.12.2022 in Form 10AC for the period from 17.10.207.12.2022 to AY 2025-26. Thus, the applicant society is not eligible to apply for approval u/s 80G(5)(ii).

The Ld. AR of the assessee submitted that the assessee had filed its application in terms of clause (iii) of the first proviso to section 80G(5) of the Act. As per the provisions then in force, such application was required to be filed six months prior to the expiry of the provisional approval, i.e., on or before September 2023, the provisional approval being valid up to 31.03.2024. Subsequently, the CBDT issued Circular No.7/2024 dated 25.04.2024, extending the time limit for filing the application up to 30.06.2024. It was further submitted that section 80G has since been amended by insertion of clause (iv) in the first proviso to section 80G(5) of the Act, whereby an assessee which has commenced its activities is permitted to apply for approval at any time after such commencement. In view of the said amendment, it was contended that the assessee’s application deserves to be considered under clause (iv)(B) of section 80G(5) of the Act. The Ld. AR also placed reliance on the Memorandum explaining the provisions of the Finance Bill, 2024, which clarifies that the insertion of clause (iv) was intended to rationalise and streamline the timeline for filing applications for approval under section 80G. Accordingly, it was submitted that the approval be granted

The ld DR, on the other hand, relied on the order of the CIT(E).

We have heard the rival submissions and perused the materials available on record. The Ld. CIT(E) rejected the application as not maintainable on the ground that it was not filed on or before 30.06.2024, as prescribed under CBDT Circular No.7/2024 dated 25.04.2024. However, it is an admitted position that by the Finance Act, 2024, clause (iv) was inserted in the first proviso to section 80G(5) of the Act with effect from 01.10.2024, permitting a trust which has commenced its activities to apply for approval under section 80G(5) at any time thereafter. The said provision operates independently of clause (iii), which governed the earlier time limits. In the present case, the order rejecting the assessee’s application was passed by the Ld. CIT(E) on 25.09.2025, i.e., after the amended provisions had come into force. In our considered view, the application filed by the assessee on 06.03.2025 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:-

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 06.03.2025 as an application filed under clause (iv)(B) of the first proviso to section 80G(5) of the Act. The CIT(E) is further directed to call for relevant details and consider the eligibility of the assessee in accordance with law. It is ordered accordingly.

In result the appeal filed by the assessee is allowed for statistical purposes.