ANDALT FOUNDATION,PUDUCHERRY V. CIT, EXEMPTIONS, CHENNAI

ITA 686/CHNY/2025

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The case involves Andalt Foundation appealing against the rejection of their application for approval under Section 80G of the Income Tax Act, 1961, by the Commissioner of Income Tax (Exemptions), Chennai. The application was initially rejected due to being filed after the deadline set by CBDT Circular No.7/2024. However, subsequent amendments to Section 80G allowed for applications to be filed at any time after the commencement of activities, which was not considered in the initial rejection. The Tribunal found that the application should be considered under the amended provisions, leading to the decision to allow the appeal for statistical purposes.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 711405 (ITAT-CHENNAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-07-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SHIVA SRINIVAS
• Assessee Lawyers: J. SARAVANAN
• Section: 80G

Judgement Text

"आयकर अपीलीय अिधकरण, ‘बी’ \u0011ा यपीठ, चे\u0016ई। IN THE INCOME TAX APPELLATE TRIBUNAL ‘B’ BENCH: CHENNAI \u0019ी यस यस िव ने रिव, \u0011ा ियक सद एवं \u0019ी जगदीश, लेखा सद क े सम( BEFORE SHRI SS VISWANETHRA RAVI, JUDICIAL MEMBER AND SHRI JAGADISH, ACCOUNTANT MEMBER आयकर अपील सं./ITA No.686/Chny/2023 Andalt Foundation, 21, 19th Cross Street, Avvai Nagar, Lawspet, Puducherry (UT) – 605 008. Vs. The Commissioner of Income Tax (Exemptions), Chennai. [PAN: AAVCA 1149E] (अपीलाथ\u0007/Appellant) (\b यथ\u0007/Respondent) अपीला थ: की ओर से/ Appellant by : Shri J. Saravanan, Advocate <=थ: की ओर से /Respondent by : Shri Shiva Srinivas, CIT सुनवा ई की ता रीख/Date of Hearing : 22.07.2025 घोषणा की ता रीख /Date of Pronouncement : 25.07.2025 आदेश / O R D E R PER JAGADISH, A.M : Aforesaid appeal filed by the assessee arises out of the order of Learned Commissioner of Income Tax (Exemptions), Chennai [hereinafter “CIT(A)”] dated 12.02.2025 seeking approval u/s.80G of the Income tax Act, 1961 (hereinafter “the Act”). Printed from counselvise.com ITA No.686/Chny/2025 Andalt Foundation :- 2 -: 2. The sole ground of appeal in this appeal of assessee is against rejection of application seeking approval u/s. 80G of the Act on the ground that the same is not maintainable. 3. The assessee had filed an application dated 22.08.2024 in Form No. 10AB under clause (iii) of the first proviso to sub-section (5) of Section 80G of the Act. The Ld. CIT(E) rejected the application on the ground that the trust was required to file the application by 30.06.2024, in view of CBDT Circular No.7/2024 dated 25.04.2024, but has filed it on 22.08.2024, with a delay of 53 days. The Ld CIT(E) held the application to be not maintainable. 4. The Learned Authorized Representative (AR) of the assessee has submitted that the assessee had filed an application under clause (iii) of the first proviso to sub-section (5) of Section 80G of the Act. As per the earlier provisions, the application was required to be made on or before September 2023, i.e., six months prior to the expiry of the provisional approval period, which ended on 31.03.2024. Subsequently, the CBDT issued Circular No.7/2024 dated 25.04.2024, extending the due date for filing the application to 30.06.2024. The Ld. AR further submitted that Section 80G has been amended by inserting Printed from counselvise.com ITA No.686/Chny/2025 Andalt Foundation :- 3 -: clause (iv) in the first proviso to Section 80G(5), which now allows an assessee that has commenced its activities to apply for approval at any time after such commencement. Accordingly, it was submitted that the assessee’s application may be considered under clause (iv)(B) of Section 80G(5) of the Act. The Ld. AR also referred to the Memorandum explaining the provisions of the Finance Bill, 2024, wherein the insertion of clause (iv) was proposed to rationalize the timeline for filing the application for approval by providing to file application any any time after commencement of activities. In view of this amendment, the Ld. AR requested that the approval may be granted with effect from 01.10.2024, being the date from which the amended provisions under clause (iv) of Section 80G(5) come into force. 5. On the other hand, the Ld. Departmental Representative (DR), has relied on the orders of CIT(E) and argued that assessee can now file fresh application as per the amended provision under clause (iv)(B) of Section 80G(5). Printed from counselvise.com ITA No.686/Chny/2025 Andalt Foundation :- 4 -: 6. We have heard the rival submissions, and perused the materials available on record. The assessee made an application under clause (iii) of first proviso to sub-section (5) of Section 80G of the Act seeking approval u/s. 80G of the Act on 22.08.2024. The Ld. CIT(E) has rejected the application as not maintainable on the ground that the assessee has not filed the application before 30.06.2024 as provided in CBDT Circular No.7/2024 dated 25.04.2024. However, it is noted that clause (iv) has now been inserted into the first proviso to Section 80G(5) by the Finance Act, 2024, w.e.f 01.10.2024 to enable assessee-trust to apply for approval u/s 80G(5) of the Act at any time after commencement of its activities. This provision is disjoint from clause (iii), which governed the earlier timeline. The Ld CIT(E) has passed the order rejecting application on 12.02.2025 after the amendment had come into force, as not maintainable. We, therefore direct the Ld CIT(E) to treat the application filed on 22.08.2024 as having been filed under clause (iv)(B) of the first proviso to Section 80G(5), and decide in accordance with the law. In view of the above, the appeal filed by the assessee is allowed for statistical purposes only. Printed from counselvise.com ITA No.686/Chny/2025 Andalt Foundation :- 5 -: 7. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced on 25th day of July, 2025 at Chennai. Sd/- Sd/- (यस यस िव ने रिव) (SS Viswanethra Ravi) \u0001याियक \u0001याियक \u0001याियक \u0001याियक सद\bय सद\bय सद\bय सद\bय / Judicial Member (जगदीश) (Jagadish) लेखा लेखा लेखा लेखा सद\u0011य सद\u0011य सद\u0011य सद\u0011य /Accountant Member चे\u0013नई/Chennai, \u0016दनांक/Dated: 25th July, 2025. EDN/- आदेश क\u0019 \bितिल प अ े षत/Copy to: 1. अपीलाथ\u0007/Appellant 2. \b थ\u0007/Respondent 3. आयकर आयु\u000f/CIT, Chennai 4. िवभागीय \bितिनिध/DR 5. गाड\u0018 फाईल/GF Printed from counselvise.com "