Audacious Dreams Foundation Vs CIT (Exemptions) (ITAT Chennai)
Belated 80G Application Revived: ITAT Applies Finance Act, 2024 Amendment and Sets Aside Rejection
The Chennai Bench of the ITAT, in Audacious Dreams Foundation v. CIT (Exemptions), dealt with rejection of an application for approval under section 80G(5) on the ground of delay. The assessee-trust had filed Form 10AB on 05.11.2024 under clause (iii) of the first proviso to section 80G(5). The CIT(E) rejected the application as not maintainable, holding that it ought to have been filed by 30.06.2024 in terms of CBDT Circular No. 7/2024 dated 25.04.2024.
The Tribunal noted that the Finance Act, 2024 inserted clause (iv) to the first proviso to section 80G(5) with effect from 01.10.2024, enabling trusts that have commenced activities to apply for approval at any time after commencement, thereby rationalising the earlier rigid timelines. Since the CIT(E)’s rejection order was passed after this amendment came into force, the application could not be rejected as non-maintainable merely on the ground of delay under the old clause (iii).
Following the coordinate bench decision in Andalt Foundation v. CIT(E), the ITAT directed the CIT(E) to treat the assessee’s application as one filed under clause (iv)(B) of section 80G(5) and to decide the same on merits in accordance with law. The appeal was accordingly allowed for statistical purposes.
FULL TEXT OF THE ORDER OF ITAT CHENNAI
