Siddhar Sri Balasubramania Swamigal Trust Vs CIT (Exemptions) (ITAT Chennai)
The ITAT Chennai set aside the rejection of 80G approval and held that, after the Finance Act, 2024, a Trust can apply for 80G approval at any time after commencement of activities.
The Trust had filed Form 10AB on 31.03.2025 under clause (iii) of the first proviso to s.80G(5). The CIT(E) rejected the application as time-barred, relying on CBDT Circular No.7/2024 which prescribed 30.06.2024 as the cut-off.
The Tribunal noted that clause (iv) was inserted into the first proviso to s.80G(5) w.e.f. 01.10.2024, creating an independent window allowing trusts to apply any time after commencement. This amendment was meant to rationalise timelines, as clarified in the Finance Bill memorandum.
Since the impugned rejection was passed after the amendment came into force, the CIT(E) ought to have applied clause (iv) instead of mechanically rejecting the application under clause (iii).
Accordingly, the ITAT directed the CIT(E) to treat the 31.03.2025 application as one filed under s.80G(5)(iv)(B) and decide it on merits in accordance with law. Appeal allowed for statistical purposes.
FULL TEXT OF THE ORDER OF ITAT CHENNAI
This is an appeal preferred by the assessee-Trust against the order of the Learned Commissioner of Income Tax (Exemptions), (hereinafter referred to as ‘Ld.CIT(E)‘), Chennai, dated 24.09.2025, rejecting the application filed by the Trust seeking approval under clause (iii) of first proviso to sub-section (5) of Section 80G of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act‘).
