Madras Chinmaya Seva Trust Vs CIT(E) (ITAT Chennai)
Law Amended to Allow ‘Any Time’ Filing – CIT(E) Cannot Reject 80G Application on Old Deadline-Once Clause (iv) Took Effect, CIT(E) Must Consider Application on Merits – Tribunal Restores 80G Approval Process- Mechanical Rejection Ignoring Finance Act 2024 Amendment is Invalid
The Assessee, a charitable trust, filed an application on 30.09.2024 in Form 10AB seeking approval u/s 80G(5) pursuant to clause (iii) of the first proviso. As per earlier law, the application was required to be filed six months before expiry of provisional approval ending on 31.03.2024. Later, CBDT Circular No.7/2024 dated 25.04.2024 extended the deadline to 30.06.2024. Since the Assessee filed the application on 30.09.2024, CIT(E) treated the application as delayed by 82 days & rejected it as non-maintainable without examining it on merits.
Before Tribunal, the Assessee argued that after Finance Act, 2024, clause (iv) was inserted in the first proviso to Section 80G(5) with effect from 01.10.2024, allowing trusts which have already commenced activities to apply for approval at any time after commencement. The intent of the amendment, as clarified in the Memorandum to Finance Bill 2024, was to remove rigid timelines under clause (iii) & provide flexibility. Therefore, the application filed on 30.09.2024 should be treated as an application u/s 80G(5)(iv)(B) for regular approval under the amended law. It was further submitted that since the CIT(E) passed the order on 17.03.2025, i.e., after the amendment had already come into force, he ought to have considered the application under the new clause (iv) instead of mechanically rejecting it under clause (iii). Reliance was placed on coordinate bench decision in Aalayam Vs CIT(E) & Chetana Vs CIT(E) where identical relief was granted.
