ALAMELU MEMORIAL CHARITABLE TRUST,THIRUVALLUR V. CIT, EXEMPTIONS, CHENNAI

ITA 814/CHNY/2025

AI Insights

The case involves Alamelu Memorial Charitable Trust appealing against the rejection of their application for approval under section 80G(5)(iii) of the Income Tax Act, 1961. The Commissioner of Income Tax (Exemptions) had rejected the application due to the delay in filing Form 10AB, which was beyond the prescribed timeline. The Tribunal considered the extensions provided by CBDT Circulars and previous decisions, concluding that the procedural delay should not hinder the substantive justice of granting approval under section 80G. The Tribunal's decision emphasized the need to align procedural requirements with the substantive provisions of the law, particularly in the context of the new regime for taxation of trusts introduced in 2021.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 706101 (ITAT-CHENNAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-06-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Assessment Year: misc
• Other Referred Cases: M/s. CIT-1982 Charitable Trust v. CIT(E) & Anors, Go Gram Eco Foundation, Bhamashah Sundarlal Daga Charitable Trust, Bishnupur Public Education Institute, All Angels Educational Society, Aurora Educational Society vs. CCIT
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: G.NANDHA KUMAR
• Assessee Lawyers: K. VISHVA PADMANABHAN
• Keywords: Condonation of delay; Set aside; Charitable institution
• Section: 11; 12AA; 12A; 10; 80G

Judgement Text

"आयकर अपीलीय अिधकरण, ’सी’ Ɋायपीठ, चेɄई IN THE INCOME-TAX APPELLATE TRIBUNAL ‘C’ BENCH, CHENNAI ŵी एस.एस. िवʷनेũ रिव, Ɋाियक सद˟ एवं ŵी अिमताभ शुƑा, लेखा सद˟ क े समƗ Before Shri S.S. Viswanethra Ravi, Judicial Member & Shri Amitabh Shukla, Accountant Member आयकर अपील सं./I.T.A. No.814/Chny/2025 Alamelu memorial Charitable Trust, No. 46, 2nd Street, SP Munusamy Nagar, GNT Road, Thervazhi, Gummidipoondi, Thiruvallur 601 201. [PAN:AAITA6393E] Vs. The Commissioner of Income Tax [Exemptions], Chennai. (अपीलाथŎ/Appellant) (ŮȑथŎ/Respondent) अपीलाथŎ की ओर से / Appellant by : Shri K. Vishva Padmanabhan, C.A. ŮȑथŎ की ओर से/Respondent by : Shri G. Nandha Kumar, CIT सुनवाई की तारीख/ Date of hearing : 04.06.2025 घोषणा की तारीख /Date of Pronouncement : 30.06.2025 आदेश /O R D E R PER S.S. VISWANETHRA RAVI, JUDICIAL MEMBER: This appeal filed by the assessee is directed against the order dated 11.03.2024 passed by the ld. Commissioner of Income Tax (Exemption), Chennai in rejecting the application filed in Form 10AB under clause (iii) of first proviso to section 80G(5) of the Income Tax Act, 1961 [“Act” in short]. 2. We find that this appeal is filed with a delay of 294 days. The assessee filed an affidavit for condonation of delay stating the reasons. Upon hearing both the parties and on examination of the said affidavit, we I.T.A. No.814/Chny/25 2 find the reasons stated by the assessee are bonafide, which really prevented in filing the appeal in time. Thus, the delay is condoned and admitted the appeal for adjudication. 3. The assessee raised 4 grounds of appeal amongst which, the only issue emanates for our consideration as to whether the ld. CIT(E) is justified in rejecting the application filed in Form 10AB seeking approval under clause (iii) of first proviso to section 80G(5) of the Act without condoning the delay in filing Form 10AB. 4. We note that the assessee filed online application on 09.10.2023 in Form No. 10AB seeking approval under clause (iii) of first proviso to section 80G(5) of the Act. The ld. CIT(E), while processing the application, asked the assessee to show-cause as to why its application should not be rejected on account of reasons mentioned in para 2 & 3 of the impugned order. For having no such details, the ld. CIT(E) rejected the application of the assessee. 5. The ld. AR Shri Vishva Padmanabhan, C.A. submits that the ld. CIT(E) rejected the application dated 14.09.2023 filed in Form 10AB seeking approval under section 80G(5)(iii) of the Act. He further submits that the timelines prescribed for filing Form No.10AB for I.T.A. No.814/Chny/25 3 recognition/registration u/s.12A of the Act has been extended up-to 30.06.2024 vide CBDT Circular No.7 of 2024 dated 25.04.2024 and in fact, the conditions are pari- materia to the provisions of clause (iii) to proviso to section 80G of the Act. The ld. AR relied on the decision of the Coordinate Benches of the Tribunal in ITA No. 827/Chny/2023 & ors in the case of M/s. CIT-1982 Charitable Trust v. CIT(E) & Anors. dated 08.03.2024 and prayed to follow the same for remanding the matter to the ld. CIT(E) for fresh consideration. 6. The ld. DR Shri G. Nandha Kumar, CIT supported the order passed by the ld. CIT(E). 7. Heard both the parties and perused the material available on record. The assessee trust filed an application dated 14.09.2023 in Form 10AB under Rule 11AA of the Income Tax Rules, 1962 seeking approval under clause (iii) of first proviso to sub-section (5) of section 80G of the Act. On perusal of the accounts for FY 2021-22 and 2022-23, the ld. CIT(E) noted that the assessee trust commenced its activities on 01.04.2022 and the date of incorporation/creation/registration as 27.07.2021. According to the ld. CIT(E), the applicant is provisionally approved under section 80G(5)(iv) of the Act and therefore, the applicant/ assessee was required to file application on Form 10AB under section I.T.A. No.814/Chny/25 4 80G(5)(iii) of the Act within the time period of at least six months prio0r to expiry of period of the provisional approval or within six months of commencements of its activities, whichever is earlier. However, the assessee trust filed application in Form 10AB on 14.09.2023, which is after expiry of six months of commencement of its activities. The above time limits extended by the CBDT are noted in para 4.5 of the impugned order and the same are reproduced herein below: Sl.No. CBDT Circular Extension upto 1 No. 12 of 2021 dated 25.06.2021 31.08.2021 2 No. 16 of 2021 dated 29.08.2021 31.03.2022 3 No. 08 of 2022 dated 31.03.2022 30.09.2022 8. The ld. CIT(E) further noted that the CBDT vide Circular No. 6/2023 dated 24.05.2023 extended the due date for filing the applications in Form 10AB from 30.09.2022 to 30.09.2023 only in respect of trusts/institutions approved under section 10(23C) and registered under section 12AB of the Act. However, the said circular did not mention any such extension of due date for filing Form 10AB to get approval under section 80G of the Act. The reasons for not extending the due date for filing application in Form 10AB for regular approval under section 80G of the Act as stated at page 8 of the impugned order are reproduced herein below: Finance Act, 2023, inter-alia, amended section 115TD of the Act, so as to provide that the accreted income of the trusts not applying for registration/ approval, within the specified time, shall be made liable to tax in accordance with the provisions of section 115TD. This amendment has I.T.A. No.814/Chny/25 5 come into effect from 01.04.2023 and therefore applies to assessment year 2023-24 and subsequent assessment years. As several trusts had not been able to apply for approval/ registration under the first or the second regime within the required time. Accreted income of the trusts would have become liable to tax under section 115TD of the Act if the application had not been made by 25.11.2022 or 30.09.2022, as the case may be. In order to mitigate hardship for such cases, the Board vide Circular No. 6 of 2023 dated 24.05.2023 has extended the due date for making an application in Form 10A, seeking for approval/ registration in case of an application under clause (i) of the first proviso of section 10(23C) or under 12A(1)(ac)(i), till 30.09.2023 and also for filing application Form No. 10AB, in case of an application under clause (iii) of the first proviso of section 10(230) or under 12A(1)(ac) (iii) of the Act, till 30.09.2023 In view of the above, trusts could apply for registration/approval by 30.09.2023 and where such application is made by the said date and registration/approval is granted, the provisions of clause (iii) of section 115TD(3) would not apply on account of delay in making application. As explained above, the BOARD has extended the due date from 30- 09-2022 to 30-09-2023 only to give relief to the trusts/ fund/institutions being hit by the provisions of clause (iii) of section 115TD(3) The same extension was not granted for filing Form 10AB to get approval u/s 80G because the amendments made to section 115TD of the Act by Finance Act, 2023 do not directly or indirectly impact such funds or institutions, which seeks approval u/s.80G by filing form 10AB. 9. By stating the above reasons, the ld. CIT(E) rejected the assessee’s application dated 14.09.2023 filed in Form 10AB under clause (iii) of first proviso to section 80G(5) of the Act and its provisional approval also cancelled. 10. We have perused the case law relied on by the ld. AR in the case of M/s. CIT-1982 Charitable Trust v. CIT(E) (supra), wherein, the Coordinate Benches of this Tribunal observed and held as under: I.T.A. No.814/Chny/25 6 7. We have heard rival contentions and gone through the facts and circumstances of the case. First of all, it is to be noted that the assessee trust has commenced its activities on 14.07.2017 and assessee is also provisionally approval u/s.80G(5)(iv) of the Act. The assessee trust was required to file application in Form No.10AB u/s.80G(5)(iii) of the Act within the time period of six months prior to expiry of the period of provisional approval or within six months of commencement of its activities, whichever is earlier, in term of clause (iii) of first proviso to sub-section (5) of section 80G of the Act. The relevant proviso reads as under:- “Provided that the institution or fund referred to in clause (vi) shall make an application in the prescribed form and manner to the Principal commissioner or Commissioner, for grant of approval, - (i) where the institution or fund is approved under clause (vi) [as it stood immediately before its amendment by the Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020], within three months from the 1st day of April, 2021; (ii) where the institution or fund is approved and the period of such approval is due to expire, at least six months prior to expiry of the said period; (iii) where the institution or fund has been provisionally approved, at least six months prior to expiry of the period of the provisional approval or within six months of commencement of its activities, whichever is earlier; (iv) in any other case, at least one month prior to commencement of the previous year relevant to the assessment year from which the said approval is sought;” 7.1 Further, we have gone through the CBDT Circular No.6 of 2023 dated 24.03.2023 and noted that the CBDT has clarified the provision relating to charitable and religious trusts and has extended the timeline for furnishing Form No.10A seeking provisional registration/approval within the extended period up-to 30.09.2023 and the relevant portion reads as under:- 1. Income of any fund or institution or trust or any university or other educational institution or any hospital or other medical institution referred to in sub-clause (iv) or sub-clause (v) or sub-clause (vi) or sub-clause (via) of clause (23C) of section 10 of the Income-tax Act, 1961 ( \"the Act\") or any trust or institution registered under section 12AA or section 12AB of the Act (hereinafter referred to as \"the trust\") is exempt subject to the fulfilment of the conditions provided under relevant sections of the Act. Taxation and Other Laws (Relaxation and I.T.A. No.814/Chny/25 7 Amendment of Certain Provisions) Act, 2020 amended the provisions related to application by a trust for registration or approval by amending the first and second proviso to clause (23C) of section 10, clause (ac) of sub-section (1) of section 12A of the Act, inserting section 12AB of the Act and amending the first and second proviso to sub-section (5) of section 80G of the Act. The amended provisions provide for the following: (a) All the existing trusts were required to apply for registration/ approval on or before 30.06.2021. However, on consideration of difficulties in the electronic filing of Form No. 10A, the Central Board of Direct Taxes (the Board) in exercise of the powers conferred upon it under Section 119 of the Act extended the due date for filing Form No. 10A in such cases to 31.08.2021 vide Circular No.12 of 2021 dated 25.06.2021, to 31.03.2022 vide Circular No. 16 of 2021 dated 29.08.2021 and further till 25.11.22 vide Circular No. 22 of 2022 dated 01.11.2022. Such registration/approval shall be valid for a period of 5 years. Thus, existing trusts are required to apply for fresh registration/approval and once the registration/ approval is granted it is valid for five years. (b) New trusts are required to apply for provisional registration/ approval at least one month prior to the commencement of the previous year relevant to the assessment year from which the said registration/approval is sought. Such provisional registration/ approval is valid for a maximum period of three years. (c) Provisionally registered/approved trusts will again need to apply for regular registration/approval in Form No. 10AB at least six months prior to the expiry of the period of provisional registration/ approval or within six months of the commencement of activities, whichever is earlier. This registration/approval is valid for a period of five years. On consideration of difficulties in electronic filing of Form No. 10AB, the Board in exercise of its powers under section 119 of Act extended the due date for electronic filing of Form No. 10AB to 30.09.2022 vide Circular No 8 of2022 dated 31.03.2022. (d) The trusts once approved/registered for five years are required to apply at least six months prior to the expiry of the period of five years. (e) The deduction under section 80G of the Act in respect of a donation made by a donor to a fund or institution referred to in sub- clause (iv) of clause (a) of sub-section (2) of section 80G, shall be all owed to the donor only if a statement of such donations is furnished by the donee in Form 10BD. The certificate of such donation is required to be provided in Form No. 10BE. Further, Form No. 10BD and Form I.T.A. No.814/Chny/25 8 No. 10BE are required to be furnished on or before the 31st May, immediately following the financial year in which the donation is received. 2. Representations received from stakeholders requesting for clarity on provisions related to trusts are dealt with as under: Clarification regarding application of section 115TD for failure to apply to registration/approval 3. Finance Act, 2023 has, inter-alia, amended section 115TD of the Act, so as to provide that the accreted income of the trusts not applying for registration/ approval, within the specified time, shall be made liable to tax in accordance with the provisions of section 115TD of the Act. This amendment has come into effect from 01.04.2023 and therefore app lies to assessment year 2023-24 and subsequent assessment years. 4. Representations have been received stating that several trusts have not been able to apply for registration/ approval within the required time due to genuine hardship. This has also led to rejection of applications simply on the ground that these were delayed. As mentioned in para 1(a) above, the last date for filing an application by the existing trusts seeking registration/ approval was extended to 25.11.2022 vide Circular No. 22 of 2022 dated 01.11.2022. Further, as stated in 1 (c) above, the due date for furnishing application for registration/approval by the provisionally registered/ approved trusts was extended till 30.09.2022. These trusts shall be subject to tax under section 115TD of the Act in accordance with the provisions of the said section, as amended by the Finance Act, 2023 if the application is not made by 25.11.2022 or 30.09.2022, as the case may be. 5. In order to mitigate genuine hardship in such cases, the Board, in the exercise of the power under section 119 of the Act, extends the due date of making an application in,- (i) Form No.10A, in case of an application under clause (i) of the first proviso to clause (23C) of section 10 or under sub-clause (i) of clause (ac) of sub-section (1) of section 12A or under clause (i) of the first proviso to sub-section (5) of section 80G of the Act, till 30.09.2023 where the due date for making such application has expired prior to such date; (ii) Form No. 10AB, in case of an application under clause (iii) of the first proviso to clause (23C) of section 10 or under sub-clause (iii) of clause (ac) of sub-section (I) of section 12A of the Act, till 30.09.2023 I.T.A. No.814/Chny/25 9 where the due date for making such application has expired prior to such date. 6. In view of the above, trusts may now apply for registration/approval under clause (i) or clause (iii) of the first proviso to clause (23C) of section 10 or sub-clause (i) or sub-clause (iii) of clause (ac) of sub- section ( I) of section 12A of the Act by 30.09.2023 and where such application is made by the said date and registration/approval is granted, the provisions of clause (iii) of sub-section (3) of section 115TD of the Act shall not apply on account of delay in making application in accordance with the provisions of clause (i) or (i ii) of the first proviso to clause (23C) of section 10 or sub-clause (i) or (iii) of clause (ac) of sub-section (I) of section 12A of the Act. 7. It may be also noted that the extension of due date as mentioned in paragraph 5(ii) shall also apply in case of all pending applications under clause (iii) of the first proviso to clause (23C) of section 10 or sub-clause (iii) of clause (ac) of sub-section ( I) of section 12A of the Act, as the case may be. Hence, in cases where the trust has already made an application in Form No. 10AB under the said provisions but such application has been furnished after 30.09.2022 and where the Principal Commissioner or Commissioner has not passed an order before the issuance of this Circular, the pending application in Form No. 10AB may be treated as a valid application. Further, in cases where the trust had already made an application in Form No. 10AB, and where the Principal Commissioner or Commissioner has passed an order rejecting such application, on or before the issuance of this Circular, solely on account of the fact that the application was furnished after the due date, the trust may furnish a fresh application in Form No. 10AB within the extended time provided in paragraph 5(ii) i.e. 30.09.2023. 8. It is also clarified that where trusts have missed the deadline of 25.11.2022, as mentioned in para 1(a) above, for making an application for registration/ approval in Form No. 10A, and have subsequently furnished Form No. 10A seeking provisional registration /approval, the relevant functionality on the e-filing portal may be used for surrendering the Form No. 10A seeking provisional registration/ approval and such trusts can make a new application in Form No. 10A for registration/ approval within the extended period up to 30.09.2023, as mentioned in paragraph 5(i). 7.2 The legislature by way of amendment introduced new regime for taxation of trusts w.e.f. 01.04.2021 and this amendment was made with the objective that it needs improvement with the advent of technology and keeping in mind the practical issue of difficulty in obtaining registration/approval/ I.T.A. No.814/Chny/25 10 notification before actually starting the activities. To make the process of registration completely electronic under a 16 digit Unique Registration Number (URN), the new regime was introduced for new as well as to existing charitable institutions. Due to change in law, a new clause (ac) has been inserted in sub-section (1) of section 12A w.e.f. 01.04.2021 which states that notwithstanding anything contained in clauses (a) to (ab), the person in receipt of the income who wants to claim benefit of section 11 & 12 is to made an application in the prescribed form 10A or 10AB and in prescribed manner to the Principal Commissioner or Commissioner, for registration of the trust or institution. 7.3 Similarly, for approval u/s.80G of the Act, similar changes were effected in the provisions of section 80G(5), the first and second provisos, which were made applicable with effect from 01.04.2021 for existing trusts as well as new trusts or entities. This amendment is brought in by Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020 amended the provisions related to application by a trust for registration or approval by amending the first and second proviso to clause (23C) of section 10, clause (ac) of sub-section (1) of section 12A of the Act, inserting section 12AB of the Act and amending the first and second proviso to sub-section (5) of section 80G of the Act. 7.4 We are concerned with the provisions of section 80G of the Act in these cases. In view of the above provisions, the deduction u/s.80G of the Act in respect of a donation made by a donor to a fund or institution referred to in sub-clause (iv) of clause (a) of sub-section (2) of section 80G, shall be allowed to the donor only if a statement of such donations is furnished by the donee in Form 10BD. The certificate of such donation is required to be provided in Form No. 10BE. Further, Form No. 10BD and Form No. 10BE are required to be furnished on or before the 31st May, immediately following the financial year in which the donation is received. The timeline provided for filling of application for approval of trust or any institution under the first and second proviso to sub-section (5) of section 80G of the Act is within six months of commencement of activities or at least six months prior to expiry of provisional approval. These two timelines are provided in first proviso to section 80G(5) of the Act. But, the CBDT time and again considering the difficulties in filing in the electronic mode of filing of Form No.10A or 10AB, in exercise of powers conferred upon it u/s.119 of the Act, extended the due date for filing Form No.10A or 10AB up to 30.09.2022 vide Circular No.16/2021 dated 29.08.2021 and further, vide Circular No.6/2023 dated 24.05.2023 up to 30.09.2023. But the CBDT has extended this date up to 30.09.2023 in filing Form No.10A for registration u/s.12A of the Act vide paras 6 to 8 of the Circular (which is reproduced in this order at para 7.1 above). The Revenue has filed the date and events which are undisputed in this case and as admitted by Revenue that in this case, provisional registration was granted u/s.80G(5) of the Act in Form No.10A under the new I.T.A. No.814/Chny/25 11 regime under clause (iv) of the said provision vide dated 23.09.2021. Even the final registration was granted u/s.12A of the Act in Form No.10AD under the new regime vide dated 13.09.2023 but rejected the application for final approval applied u/s.80G of the Act in Form No.10AB vide order dated 25.09.2023 by CIT(Exemption) on the reason that the application was filed by assessee only on 17.03.2023, which is belated application. There is no dispute about the final registration granted to the assessee trust u/s.12A of the Act in Form No.10AD under the new regime vide order dated 13.09.2023 but rejected assessee’s application filed in Form No.10AB u/s.80G of the Act dated 17.03.2023 vide order dated 25.09.2023 as the application is a belated one. 7.5 We have considered the case laws of Co-ordinate Bench of Jaipur Tribunal in the case of Go Gram Eco Foundation, supra and noted that the Jaipur Bench has considered this issue of delay in application filed in Form No.10AB in term of clause (iii) of first proviso to section 80G(5) of the Act, wherein the provisional registration was granted to the assessee trust on 16.10.2021 in Form No.10A u/s.12A(1)(ac)(vi) and under clause (iv) of first proviso to section 80G(5) of the Act. In that case, the provisional registration was granted in form No.10AC on 27.10.2021. Admitted fact in the case is that the assessee trust commenced its activities from 13.10.2021 being new trust and assessee filed application for grant of approval under clause (iii) of first proviso to section 80G(5) on 16.12.2022, which is delayed by almost about 2.5 months from the extended date. The Tribunal considered this issue and finally in para 6.1 noted and the relevant reads as under:- There is no dispute as to the fact that assessee is provisionally registered till A.Y. 2024-25 vide order dated 27.10.2021. Thus it has complied with section 80G(5). The proviso to this section only deals with the procedure as to the filing of the application. The law of procedure has to be approached, understood and appreciated as a helpmate in the course of the process of administration of justice. Procedural provision should be so construed as to sub serve the course of justice and not to hinder it. It is a settled proposition of law that technicalities should not come in way in imparting the substantial justice. We get support of our this view from the decision of Hon’ble Supreme Court in case of S. Nagaraj & Others Vs. State of Karnataka & Another 4 SCC 595. 7.6 Even in the decision of Jodhpur Bench of this Tribunal in the case of Bhamashah Sundarlal Daga Charitable Trust, supra, the assessee trust received provisional approval u/s.80G(5) vide order dated 16.08.2022 for the period from 16.08.2022 to A.Y. 2025-26. The assessee has also got approval u/s.12A(1)(ac) of the Act from A.Y. 2022-23 to A.Y. 2026-27 and assessee filed application in Form No.10AB for approval u/s.80G(5) of the Act on 11.01.2023, which was treated as belated application and appropriate authority rejected the approval application filed by the assessee. But the I.T.A. No.814/Chny/25 12 Tribunal allowed the maintainability of application and directed the CIT(Exemption) to re-decide on merits. Hence, these decisions favors the case of the assessee and clearly applicable to the facts of present case before us. 7.7 The case law cited by the Revenue of Kolkata Tribunal in the case of Bishnupur Public Education Institute, supra wherein the Kolkata Tribunal has relied on the decision of Hon’ble High court of Madras in the case of All Angels Educational Society, supra and the Hon’ble High Court of Andhra Pradesh in the case of Aurora Educational Society vs. CCIT reported in 20 taxmann.com 46, after considering these decisions has decided the issue on the approval of application filed u/s.10(23C)(vi) of the Act rejected by CIT(Exemption) relating to assessment years 2016-17, 2017-18 & 2018-19. The assessee’s application was dated 11.02.2019 under the old regime. The new regime of taxation of charitable trusts / institutions started w.e.f. 01.04.2021 and hence, reliance placed by Revenue on the Co-ordinate Bench decision of Kolkata Tribunal in the case of Bishnupur Public Education Institute, supra is not at all relevant and even the case law of Hon’ble High Court of Madras and the Hon’ble High Court of Andhra Pradesh are also relating to taxation of old regime prior to 01.04.2021. Hence, these are clearly distinguishable on facts and hence, not applicable. In term of the above, we now go through the factual aspect. 7.8 After hearing the arguments of ld. counsel for the assessee and ld. CIT-DR as noted above, we find from the facts that the timeline prescribed for filing Form No.10AB for registration u/s.12A of the Act in the case of assessee trust has been extended up-to 30.09.2023 after considering the genuine hardship faced by charitable institutions vide various CBDT circulars and finally, vide Circular No.6/2023 dated 24.05.2023. Similarly, the timeline prescribed for filing Form No.10A for recognition u/s.80G of the Act was also extended up-to 30.09.2023 by the same circular for trusts filing registration under clause (i) to first proviso to section 80G(5) of the Act. But the above extension was not extended beyond 30.09.2022, unlike other forms which were extended up to 30.09.2023 to the disputed forms namely Form No.10AB for renewal of recognition u/s.80G(5) of the Act under clause (iii) of the first proviso to section 80G(5) of the Act. Once, the CBDT has extended the timeline for filing Form No.10AB for recognition u/s.12A of the Act and also for filing Form No.10A for recognition u/s.80G of the Act extended up to 30.09.2023 for trusts filing registration under clause (i) of first proviso to section 80G(5) of the Act, we find no difference in continuing hardship as recognized by CBDT even in filing Form No.10AB for renewal of recognition u/s.80G of the Act under clause (iii) of first proviso to section 80G(5) of the Act. In our view, this being a genuine hardship case, which is recognized by Revenue or CBDT by issuing a general circular, we are of the view that this specific provision of clause (iii) to first proviso to section 80G(5) cannot be excluded and or it has not been the intention of the CBDT while issuing the I.T.A. No.814/Chny/25 13 circular. There cannot be a distinction within the same provision without bringing out any exception and even this provision is for the benefit of the donors who are donating money to the charitable trusts for claiming exemption in their returns of income. In our view, we agree with the argument of ld. counsel for the assessee that the timeline prescribed under clause (iii) of first proviso to section 80G(5) of the Act should be treated as directory and not mandatory especially considering the transitional nature of the amendment as brought out by the taxation of other laws (relaxation and amendment of certain provisions) act 2020 for bringing new regime. Hence, in our view, the CIT(Exemptions) should not have rejected the assessee’s application in Form No.10AB only for this technical reason. We are of the view that the intention of CBDT in its circular clearly reflects their mind that once the timeline prescribed for filing Form No.10AB for recognition u/s.12A of the Act has been extended up to 30.09.2023, the same may be treated as extended for forms namely Form No.10AB for renewal of approval/ recognition/registration under clause (iii) of first proviso to section 80G of the Act also. Hence, we accept the plea of assessee and agree with the arguments of ld. counsel for the assessee and remand the matter back to the file of the CIT(Exemption) to decide the issue on merits. Hence, the order of CIT(Exemption) on this issue is set aside and matter is remanded back to the file of the CIT(Exemption) for re-deciding the issue on merits as per law. The appeal of the assessee is allowed for statistical purposes. 11. With regard to the CBDT Circular No.7 of 2024 dated 25.04.2024, it would be useful to reproduce the contents of the said circular: Sub: Extension of due date for filing of Form No. 10A/10AB under the Income-tax Act, 1961-reg. On consideration of difficulties reported by the taxpayers and other stakeholders in the electronic filing of Form No. 10A/10AB, the Central Board of Direct Taxes (the Board) in exercise of its powers under section 119 of the Income-tax Act, 1961 (the Act) extended the due date for filing Form No. 10A to 31.08.2021 by Circular No. 1212021 dated 25.06.2021, to 31.03.2022 by Circular No.16/2021 dated 29.08.2021, to 25.11.2022 by Circular No. 22/2022 dated 01.11.2022 filing Form No. 10AB to 30.09.2022 by Circular No. 8/2022 dated 31.03.2022 and further to 30.09.2023 by Circular No. 6/2023 dated 24.05.2023. 2. Representations have been received in the Board with a request to condone the delay in filing Form No. 10A/10AB, as the same could not be filed in such cases within the last extended date, i.e.,30.09.2023. 3. On consideration of the matter, with a view to avoid and mitigate genuine hardship in such cases, the Board, in exercise of the powers I.T.A. No.814/Chny/25 14 conferred under section 119 of the Act, hereby extends the due date of making an application/intimation electronically in – (i) Form No. 10A, in case of an application under clause (i) of the first proviso to clause (23C) of section 10 or under sub-clause (i) of clause (ac) of sub-section (1) of section 12A or under clause (i) of the first proviso to sub- section (5) of section 80G or in case of an intimation under fifth proviso of subsection(1) of section 35 of the Act, till 30.06.2024; (ii) Form No. 10AB, in case of an application under clause (iii) of the first proviso to clause (23C)of section 10 or under sub-clause (iii) of clause (ac) of sub-section (I) of section 12A or under clause (iii) of the first proviso to sub- section (5) of section 80G of the Act, till 30.06.2024. 4. It may be also noted that extension of due date as mentioned in paragraph 3(ii) shall also apply in case of all pending applications under clause (iii) of the first proviso to clause (23C) of section 10 or sub-clause (iii) of clause (ac) of sub-section (1) of section 12A or under clause (iii) of the first proviso to sub-section (5) of section 80G of the Act, as the case may be. Hence, in cases where any trust, institution or fund has already made an application in Form No.10AB under the said provisions on or before the issuance of this Circular, and where the Principal Commissioner or Commissioner has not passed an order before the issuance of this Circular, the pending application in Form No. 10AB may be treated as a valid application. 4.1 Further, in cases where any trust, institution or fund has already made an application in Form No. 10AB, and where the Principal Commissioner or Commissioner has passed an order rejecting such application, on or before the issuance of this Circular, solely on account of the fact that the application was furnished after the due date or that the application has been furnished under the wrong section code, it may furnish a fresh application in Form No. 10AB within the extended time provided in paragraph 3(ii) i.e. 30.06.2024. 5. It is also clarified that if any existing trust, institution or fund who had failed to file Form No. 10A for A Y 2022-23 within the due date as extended by the CBDT circular no. 6/2023 dated24.05.2023 and subsequently, applied for provisional registration as a new trust, institution or fund and has received Form No. 10AC, it can avail the option to surrender the said Form No. 10AC and apply for registration for A Y 2022-23 as an existing trust, institution or fund in Form No. 10A within the extended time provided in paragraph 3(i) i.e. 30.06.2024.” 12. It is clear from the above that the assessee filed its application in Form 10AB dated 14.09.2023, much before the extended time provided in I.T.A. No.814/Chny/25 15 paragraph 3(i) of the CBDT Circular No. 7 of 2024 dated 25.04.2024, which was not available before passing the order by the ld. CIT(E). Considering the decision of the Tribunal in the case of M/s. CIT-1982 Charitable Trust v. CIT(E) (supra) as well as CBDT Circular dated 25.04.2024 extending the time limit till 30.06.2024, we remand the matter to the file of the ld. CIT(E) for fresh consideration and decide the application of the assessee filed in Form 10AB and decide the issue on merits in accordance with law. Thus, the grounds raised by the assessee are allowed for statistical purposes. 13. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced on 30th June, 2025 at Chennai. Sd/- Sd/- (AMITABH SHUKLA) ACCOUNTANT MEMBER (S.S. VISWANETHRA RAVI) JUDICIAL MEMBER Chennai, Dated, 30.06.2025 Vm/- आदेश की Ůितिलिप अŤेिषत/Copy to: 1. अपीलाथŎ/Appellant, 2.ŮȑथŎ/ Respondent, 3. आयकर आयुƅ/CIT, Chennai/Madurai/Coimbatore/Salem 4. िवभागीय Ůितिनिध/DR & 5. गाडŊ फाईल/GF. "