Mother Leela Trust Vs CIT (Exemption) (ITAT Chennai)
The appeal before the ITAT Chennai challenged the Commissioner of Income Tax (Exemption) [CIT(E)] order dated April 11, 2025, which rejected the assessee’s application for final registration under Section 80G(5)(iii) of the Income Tax Act, 1961. The sole reason for the rejection was that the application, dated November 23, 2024, was filed late, past the prescribed deadline of September 30, 2024. The CIT(E) concluded that it lacked the authority to condone the 53-day delay.
The assessee argued that the delay should be condoned, asserting that the CIT(E) has inherent powers, similar to those available for Section 12A registrations, to condone delays, especially in cases of genuine hardship. The counsel submitted that Section 80G registrations are closely linked to Section 12A and that denying registration due to technical deficiencies causes grave injustice, particularly since Section 80G benefits donors supporting charitable trusts engaged in public service. The assessee also drew attention to the amended provisions of the Finance Act, specifically clause (iv) of the first proviso to Section 80G(5), which allows applications to be filed at any time after the commencement of activities, effective from October 1, 2024.
The Tribunal reviewed the submissions and noted the consistent view taken by its coordinate benches. It referenced the decision in CIT-1982 Charitable Trust, which held that the timelines prescribed under Section 80G(5) should be treated as directory and not mandatory. The Tribunal observed that the CBDT had extended timelines for other related forms (like Form 10AB for Section 12A recognition) up to September 30, 2023, based on “continuing hardship.” The ITAT reasoned that there should be no distinction regarding genuine hardship for renewal/registration under Section 80G(5)(iii).
