Foundation for Friendly Environment & Medical Awareness Vs CIT (Exemption) (ITAT Chennai)
The appeal was filed by the assessee, Foundation for Friendly Environment & Medical Awareness, against the order of the Commissioner of Income Tax (Exemptions) [CIT(E)] dated January 27, 2025. The sole issue contested was the rejection of the assessee’s application for final approval under Section 80G of the Income Tax Act, 1961.
The assessee had filed its application in Form No. 10AB under Section 80G(5), clause (iii) of the first proviso, on July 31, 2024. The Ld. CIT(E) rejected this application, deeming it non-maintainable because it was filed with a delay of 31 days past the deadline of June 30, 2024, which was set by CBDT Circular No. 7/2024 dated April 25, 2024. The assessee, being a new Trust, had initially received provisional approval under Section 80G until Assessment Year (A.Y.) 2024-25.
Before the ITAT, the assessee presented an alternative argument, pointing out that Section 80G(5) was subsequently amended by the Finance Act, 2024, with effect from October 1, 2024. This amendment introduced clause (iv) to the first proviso, which allows a trust that has commenced its activities to apply for approval at any time after such commencement. The assessee requested that their delayed application, originally filed under the old clause (iii), be considered as an application filed under the new clause (iv)(B) of Section 80G(5), which is disjoint from the earlier timeline restrictions.
