Bright Educational Trust Vs CIT (Exemptions) (ITAT Chennai)
ITAT Chennai Restores Trust’s 80G Application; Directs CIT(E) to Reconsider Under Amended Law
Background:
Bright Educational Trust applied on 19.09.2024 in Form 10AB seeking renewal of approval u/s 80G(5). CIT(E) rejected the application on 14.03.2025, holding it “non-maintainable” since, as per CBDT Circular No.7/2024 (25.04.2024), the extended deadline was 30.06.2024. Delay of 82 days was treated as fatal.
Assessee argued that post Finance Act, 2024, a new clause (iv) to the first proviso of s.80G(5) allowed trusts that had commenced activities to apply for approval at any time. Thus, their application (though late under clause iii) should be treated under clause (iv)(B).
Assessee’s Arguments:
- Application was filed under clause (iii), but after 01.10.2024 (effective date of amendment), clause (iv)(B) applies.
- Cited Memorandum to Finance Bill, 2024 explaining intent of amendment – to remove rigid timelines.
- Relied on ITAT Chennai decision in Aalayam vs CIT(E) (ITA No.1012/Chny/2025, order dated 25.07.2025) & ITAT Mumbai in Chetana vs CIT(E) [2025] 176 taxmann.com 713.
- Prayed that approval be granted effective 01.10.2024.
Revenue’s Stand:
- CIT(E) rightly rejected as belated under clause (iii).
- Trust can now file fresh application under amended clause (iv)(B).
Tribunal’s Findings:
- CIT(E) passed rejection order on 14.03.2025 i.e., after amendment effective 01.10.2024.
- By then, clause (iv)(B) permitted application anytime post commencement of activities.
- Thus, application dated 19.09.2024 ought to be considered under clause (iv)(B), not dismissed as time-barred.
- Following Aalayam & Chetana rulings, Tribunal directed CIT(E) to reconsider the application afresh under amended provisions.
Tribunal’s Conclusion:
- Appeal allowed for statistical purposes.
- CIT(E) directed to treat application dated 19.09.2024 as valid under s.80G(5)(iv)(B) & decide on merits.
ITAT Chennai held Bright Educational Trust’s delayed 80G application must be reconsidered under the Finance Act, 2024 amendment, restoring its chance for approval.
