M/S. OORUNI FOUNDATION,CHENNAI V. CIT, EXEMPTIONS, CHENNAI

ITA 688/CHNY/2025

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M/s. Ooruni Foundation appealed against the rejection of their application for approval under Section 80G(5)(iii) of the Income Tax Act, 1961, due to a 32-day delay in filing Form 10AB. The CIT (Exemptions) rejected the application as he lacked the authority to condone the delay. The foundation subsequently filed a condonation petition with the CBDT, citing genuine hardships and procedural delays. The ITAT, considering the circumstances and precedents, decided to set aside the CIT (Exemptions)'s order and await the CBDT's decision before proceeding.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 705223 (ITAT-CHENNAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-07-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Assessment Year: misc
• Other Referred Cases: Earth Trust vs. CIT (ITA No. 423/Chny/2024), Sri Nrisimha Priya Charitable Trust (W.P. No. 27030 & Ors. of 2024)
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SHIVA SRINIVAS
• Assessee Lawyers: S. PRINCE SIMON
• Keywords: Condonation of delay; Set aside; Principle of natural justice; Competent authority; Charitable institution
• Section: 12AA; 119(2)(b); 80G

Judgement Text

"आयकर अपीलीय अिधकरण, ‘बी’ \u0001यायपीठ, चे ई। IN THE INCOME TAX APPELLATE TRIBUNAL ‘B’ BENCH: CHENNAI \u0001ी एबी टी. वक , ाियक सद\u0011 एवं एवं एवं एवं \u0001ी जगदीश, लेखा सद क े सम\u0015 BEFORE SHRI ABY T. VARKEY, JUDICIAL MEMBER AND SHRI JAGADISH, ACCOUNTANT MEMBER आयकर अपील सं./ITA No.688/Chny/2025 िनधा\u000eरणवष\u000e/Assessment Year: - M/s. Ooruni Foundation, 18A, First Floor, Patel Cross Street, Nehru Nagar, Mylapore, Chennai-600 004. v. The CIT (Exemptions), Chennai. [PAN: AAATO 5611 R] (अपीलाथ\u0016/Appellant) (\u0017\u0018यथ\u0016/Respondent) अपीलाथ\u0016 क\u001a ओर से/ Appellant by : Mr.S. Prince Simon, Advocate \u0017\u0018यथ\u0016 क\u001a ओर से /Respondent by : Mr.Shiva Srinivas, CIT सुनवाईक\u001aतारीख/Date of Hearing : 13.06.2025 घोषणाक\u001aतारीख /Date of Pronouncement : 04.07.2025 आदेश / O R D E R PER ABY T. VARKEY, JM: This is an appeal preferred by the assessee foundation against the application filed in Form No.10AB dated 02.08.2024 seeking approval u/s.80G(5)(iii) of the Income Tax Act, 1961 (hereinafter referred to as \"the Act”) 2. At the outset, the Ld.AR of the assessee fairly pointed out that the Ld.CIT(E) has rejected the application seeking approval under clause (iii) of first proviso to sub-section (5) of section 80G of the Act, because, the ITA No.688/Chny/2025 M/s. Ooruni Foundation :: 2 :: application was filed with a delay of ‘32’ days i.e. after expiry of the extended due date i.e. falling on 30.06.2024. Therefore, according to the Ld.CIT(E), approval u/s.80G of the Act can’t be granted, because he doesn’t have the power to condone the delay. 3. Pursuant to rejection of its application, the assessee is noted to have filed condonation petition before the Central Board of Direct Tax (CBDT) vide letter dated 30.05.2025, a copy of which has been placed before us, which shows that assessee through its Legal Counsel has filed application u/s.119(2)(b) of the Act for condoning the delay of ‘32’ days in filing of the application seeking approval u/s.80G of the Act. A copy of the application filed before the CBDT is reproduced as under: Date: 30.05.2025 From: M/s. Ooruni Foundation 18A, First Floor, Patel Cross Street, Nehru Nagar, Mylapore, Chennai-600004 To The Hon'ble Chairman, Central Board of Direct Taxes (CBDT), Ministry of Finance, Delhi. Respected Sir/Madam, Sub: Petition for condonation of delay under Section 119(2)(b) of the Income Tax Act, 1961 Delay in filing Form 10AB for registration under Section 12AA - Reg. Ref: PAN-AAAT05611R As advised by my client, M/s. Ooruni Foundation, a public charitable trust duly registered and engaged in bona fide charitable ITA No.688/Chny/2025 M/s. Ooruni Foundation :: 3 :: activities, it is respectfully submitted that this petition is for seeking condonation of delay U/s. 119(2)(b) of the Income Tax Act, 1961, in filing Form 10AB for registration U/s. 80G of the Act. The delay in filing the application as wholly unintentional and occurred due to bona fide and unavoidable circumstances, as elaborated below: 1. The Petitioner is a genuine charitable trust established with the core objective of carrying out social, educational, and philanthropic activities for public benefit. 2. As per the statutory requirement, the Trust was required to file Form 10AB within the prescribed time limit for continuation of exemption U/s. 80G of the Act. However, due to unforeseen circumstances, the filing was delayed by 32 days. 3. The application was subsequently rejected by the Learned Hon'ble Commissioner of Income Tax (Exemptions). It is also pertinent to state the Learned Hon'ble Commissioner of Income Tax (Exemptions) had also categorically stated that the rejection of the belated application is purely on the basis that the provisions of the Act does not empower him to condone the delay. 4. It is also pertinent to state that except for the belated application, there was no other reason whatsoever in rejecting the 80G registration. 5. The rejection order was passed with reference to CBDT Circular No. 6 of 2023, without adequate consideration of the peculiar facts and circumstances surrounding the delay. 6. The delay in filing the application was primarily attributable to the prolonged ill health of the Managing Trustee during the relevant period, which substantially impeded the Trust's ability to effectively coordinate and compile the requisite information. Additionally, the Trust is administered by a Board of Trustees comprising professionals from various fields, whose constrained availability due to pre-existing professional obligations further contributed to the delay in collating, reviewing, and finalizing the necessary documentation for submission of Form 10AB. 7. The petitioner also prays to state apart from this delay in filing the Application the trust since its inception is regular in timely filing the return of income and all other compliances. It is also pertinent to state that the trust has regularly utilized all its donations towards the charitable activities year on year. 8. The Hon'ble ITAT Chennai Bench, in the case of Earth Trust vs. CIT (ITA No. 423/Chny/2024), has held that minor procedural delays ITA No.688/Chny/2025 M/s. Ooruni Foundation :: 4 :: should not be allowed to defeat substantive claims for registration, especially where the delay is due to genuine hardship. 9. Further, the Hon'ble Madras High Court in Sri Nrisimha Priya Charitable Trust (W.P. No. 27030 & Ors. of 2024, dated 02.04.2024) has reiterated that the principles of natural justice and substantive fairness must prevail over procedural technicalities in cases involving charitable institutions. 10. The petitioner prays to state that the trust is a non-profit, non- government organisation dedicated to promoting education, environment sustainability, women welfare, and Job opportunities to the underprivileged communities. The rejection of the 80G application would result in stoppage of donation which would be a setback for those in need of the trust's welfare initiatives which predominantly includes multiple students and people from underprivileged communities. In view of the above facts and legal precedents, it is humbly prayed that your Lordship may kindly invoke the powers conferred U/s. 119(2)(b) of the Income Tax Act, 1961, and condone the delay of 32 days in filing Form 10AB for registration U/s. 80G, and accordingly, direct the appropriate authority to grant the registration u/s.80G to the Petitioner in the best interest of public interest and thus render justice. Kindly accept the submission and do the needful Thanking you, Yours faithfully, Sd/- Shrreyans Mehta AR of M/s. Ooruni Foundation 4. The assessee has also placed e-mail sent to the Chairman, CBDT on 02.06.2025 at 06:38 PM. Having perused the condonation application filed before the CBDT which is pending decision before the competent authority, in the interest of justice and fair play, we set aside the impugned order of the Ld.CIT(E) and restore the application back to his file with a direction to await the decision of the CBDT; and thereafter the Ld.CIT(E) to pass order in accordance to law. Meanwhile, the assessee also to keep track of the action taken by the CBDT on its application, and ITA No.688/Chny/2025 M/s. Ooruni Foundation :: 5 :: move appropriate application to bring it to notice of the Ld.CIT(E) when the decision is taken by the CBDT and thereafter, the Ld.CIT(E) to pass orders in accordance to law after hearing the assessee. 5. In the result, appeal filed by the assessee is allowed for statistical purposes. Order pronounced on the 04th day of July, 2025, in Chennai. Sd/- Sd/- (जगदीश) (JAGADISH) लेखा सद /ACCOUNTANT MEMBER (एबी टी. वक ) (ABY T. VARKEY) \u0001याियक सद\bय/JUDICIAL MEMBER चे ई/Chennai, !दनांक/Dated: 04th July, 2025. TLN आदेश क\u001a \u0017ितिलिप अ$ेिषत/Copy to: 1. अपीलाथ\u0010/Appellant 2. \u0011\u0012थ\u0010/Respondent 3. आयकरआयु\u0018/CIT, Chennai / Madurai / Salem / Coimbatore. 4. िवभागीय\u0011ितिनिध/DR 5. गाड फाईल/GF "