OUTREACH EDUCATIONAL AND CHARITABLE TRUST,POLLACHI V. CIT, EXEMPTIONS, CHENNAI

ITA 1745/CHNY/2025

AI Insights

The case involves the Outreach Educational and Charitable Trust, which appealed against the decision of the Commissioner of Income Tax (Exemptions), Chennai, rejecting their application for approval under Section 80G of the Income Tax Act, 1961. The initial rejection was based on the application being filed after the deadline set by a CBDT Circular. However, subsequent amendments to the Act allowed for applications to be made at any time after the commencement of activities, which was not considered in the initial decision. The Tribunal found that the application should be evaluated under the new provisions, leading to the setting aside of the CIT(E)'s decision and remanding the matter for fresh consideration.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 772695 (ITAT-CHENNAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-08-2025
• 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: R. ANITHA
• Assessee Lawyers: V. SWAMINATHAN; C.A
• Keywords: Set aside; Charitable institution
• Section: 80G

Judgement Text

"आयकर अपीलीय अिधकरण, ‘सी’ \u0011ा यपीठ, चे\u0016ई। IN THE INCOME TAX APPELLATE TRIBUNAL ‘C’ BENCH: CHENNAI \u0019ी जॉज जॉज क े, उपा एवं \u0019ी जगदीश, लेखा सद' क े सम BEFORE SHRI GEORGE GEORGE K, VICE PRESIDENT AND SHRI JAGADISH, ACCOUNTANT MEMBER आयकर अपील सं./ITA No.1745/Chny/2025 Outreach Educational and Charitable Trust, 30, Barathi Street, Mahalingapuram, Pollachi – 642 002. Vs. The Commissioner of Income Tax (Exemptions), Chennai. [PAN: AAATO 6499D] (अपीलाथ\u0007/Appellant) (\b यथ\u0007/Respondent) अपीला थ; की ओर से/ Appellant by : Shri V. Swaminathan, C.A =>थ; की ओर से /Respondent by : Mrs. R. Anitha, Addl. CIT सुनवा ई की ता रीख/Date of Hearing : 25.08.2025 घोषणा की ता रीख /Date of Pronouncement : 28.08.2025 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 10.06.2025 seeking approval u/s.80G of the Income tax Act, 1961 (hereinafter “the Act”). Printed from counselvise.com ITA No.174/Chny/2025 Outreach Educational and Charitable Trust :- 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 online application on 13.12.2024 in Form No. 10AB under clause (ii) of the first proviso to section 80G(5) of the Act. The Ld. CIT(E) rejected the application holding that the trust was required to file the application on or before September, 2024, in view of CBDT Circular No. 7/2024 dated 25.04.2024. Since the assessee had filed its application only on 13.12.2024, i.e., after the expiry of the due date, 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 (ii) 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 2024, i.e., six months prior to the expiry of the provisional approval period. 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 Printed from counselvise.com ITA No.174/Chny/2025 Outreach Educational and Charitable Trust :- 3 -: 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 at 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) of the Act. Printed from counselvise.com ITA No.174/Chny/2025 Outreach Educational and Charitable Trust :- 4 -: 6. We have heard the rival submissions, and perused the materials available on record. The assessee made an application under clause (ii) of first proviso to sub-section (5) of Section 80G of the Act seeking approval u/s. 80G of the Act on 13.12.2024. 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. In the present case, the Ld. CIT(E) passed the order rejecting the assessee’s application on 10.06.2025, i.e., after the amendment had already come into force. In these circumstances, we are of the view that the application filed by the assessee on 13.12.2024 ought to have been considered as an application under clause (iv)(B) of the first proviso to section 80G(5) of the Act. We accordingly set aside the impugned order and direct the Ld. CIT(E) to treat the application as filed under clause (iv)(B) and to Printed from counselvise.com ITA No.174/Chny/2025 Outreach Educational and Charitable Trust :- 5 -: decide the same afresh in accordance with law, after affording reasonable opportunity of hearing to the assessee. 7. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced on 28th day of August, 2025 at Chennai. Sd/- Sd/- (जॉज जॉज क े) (George George K) उपा / Vice President (जगदीश) (Jagadish) लेखा लेखा लेखा लेखा सद\u0011य सद\u0011य सद\u0011य सद\u0011य /Accountant Member चे\u0013नई/Chennai, \u0016दनांक/Dated: 28th August, 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/Madurai/Coimbatore/Salem 4. िवभागीय \bितिनिध/DR 5. गाड\u0018 फाईल/GF Printed from counselvise.com "