AUDACIOUS DREAMS FOUNDATION,VELLORE V. CIT, EXEMPTIONS, CHENNAI

ITA 2523/CHNY/2025

AI Insights

The case involves Audacious Dreams Foundation appealing against the decision of the Commissioner of Income Tax (Exemptions), Chennai, which rejected their application for approval under Section 80G of the Income Tax Act, 1961, due to it being filed late. The Tribunal considered the amendments to Section 80G, which allow for applications to be filed at any time after the commencement of activities, and found that the rejection was not in accordance with the amended provisions. The Tribunal referenced a similar case, Andalt Foundation V.CIT(E), to support their decision.

• Counselvise Citation: [2026] 140 COUNSELVISE.COM (IT) 826421 (ITAT-CHENNAI)
• Duration Of Justice: 3 month(s) 26 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-01-2026
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: misc
• Appeal Filed On: 12-09-2025
• Other Referred Cases: Andalt Foundation V.CIT(E)  ITA No.686/Chny/2025 dated 25.08.2025
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SHIVA SRINIVAS
• Assessee Lawyers: J. SARAVANAN
• Keywords: Reasonable cause
• Section: 80G

Judgement Text

" आयकर अपील य अ धकरण, ‘बी’ \u000eयायपीठ, चे\u000eनई IN THE INCOME TAX APPELLATE TRIBUNAL ‘B’ BENCH, CHENNAI \u0015ी जॉज\u0018 जॉज\u0018 क े, उपा\u001aय\u001b एवं \u0015ी एस.आर.रघुनाथा, लेखा सद%य क े सम\u001b BEFORE SHRI GEORGE GEORGE K, VICE PRESIDENT AND SHRI S.R. RAGHUNATHA, ACCOUNTANT MEMBER आयकर अपील सं./ITA No.:2523/Chny/2025 Audacious Dreams Foundation, 45/32, Karupuleeswarar Nagar, Goodavnagaram, Gudiyattam, Vellore – 632 602. vs. The Commissioner of Income Tax (Exemptions), Chennai. [PAN: AAETA-0078-J] (अपीलाथ'/Appellant) (()यथ'/Respondent) अपीलाथ' क* ओर से/Appellant by : Shri. J. Saravanan, Advocate ()यथ' क* ओर से/Respondent by : Shri. Shiva Srinivas, CIT सुनवाई क* तार ख/Date of Hearing : 19.11.2025 घोषणा क* तार ख/Date of Pronouncement : 07.01.2026 आदेश /O R D E R PER S. R. RAGHUNATHA, AM : The present appeal of the assessee arises out of the order of the Learned Commissioner of Income Tax (Exemptions), Chennai [hereinafter referred to as the “Ld.CIT(E)”] dated 21.06.2025 seeking approval u/s.80G of the Income tax Act, 1961 [hereinafter referred to as “the Act”]. 2. During the course of hearing, the Registry has pointed out that there is a delay of 12 days in filing the present appeal before the Tribunal. The assessee has filed an application explaining the cause of such delay. We have gone through the averments made in the condonation petition and thus, we are of the opinion that the assessee is prevented in filing the appeal belatedly and we are Printed from counselvise.com :-2-: ITA. No:2523/Chny/2025 satisfied that the delay in filing the appeal is due to reasonable cause. Consequently, we condone the delay of 12 days in filing the present appeal and admit the same for adjudication on merits. 3. The sole ground raised in this appeal by the assessee is against rejection of application seeking approval u/s. 80G of the Act on the ground that the same is not maintainable. 4. The assessee had filed an application dated 05.11.2024 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 05.11.2024, with a delay of 128 days. The Ld. CIT(E) held the application to be not maintainable. 5. The Ld.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 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 time after commencement of activities. In view of this amendment, the Ld.AR requested Printed from counselvise.com :-3-: ITA. No:2523/Chny/2025 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. 6. On the other hand, the Ld.DR has relied on the orders of Ld.CIT(E) and argued that assessee can now file fresh application as per the amended provision under clause (iv)(B) of Section 80G(5) of the Act. 7. We have heard the rival submissions perused the materials available on record and gone through the order of the ld.CIT(E). 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 05.11.2024. 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 21.06.2025 after the amendment had come into force, as not maintainable. 8. The coordinate bench of the Tribunal in the following case has already decided the similar issue in the identical set of facts and has directed the ld.CIT(E) to consider the application filed by the assessee belatedly as valid and to decide the issue in accordance with law: - Andalt Foundation V.CIT(E) – ITA No.686/Chny/2025 dated 25.08.2025 9. In the present facts and circumstances of the case and respectfully following the decision of the coordinate bench of the Tribunal (supra), we Printed from counselvise.com :-4-: ITA. No:2523/Chny/2025 therefore, direct the Ld.CIT(E) to treat the application filed on 05.11.2024 as having been filed under clause (iv)(B) of the first proviso to Section 80G(5), and decide the issue in accordance with the law. In view of the above, the grounds of appeal filed by the assessee is allowed for statistical purposes only. 10. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced in the court on 07th January, 2026 at Chennai. Sd/- Sd/- (जॉज\u0018 जॉज\u0018 क े) (GEORGE GEORGE K) उपा\u001aय\u001b /VICE PRESIDENT (एस. आर. रघुनाथा) (S. R. RAGHUNATHA) लेखा सद%य/ACCOUNTANT MEMBER चे\u000eनई/Chennai, /दनांक/Dated, the 07th January, 2026 SP आदेश क* (1त2ल3प अ4े3षत/Copy to: 1. अपीलाथ'/Appellant 2. ()यथ'/Respondent 3.आयकर आयु5त/CIT– Chennai/Coimbatore/Madurai/Salem 4. 3वभागीय (1त1न ध/DR 5. गाड\u0018 फाईल/GF Printed from counselvise.com "