2026 (8) TMI 452

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.... Act"). 2. The assessee is a charitable trust established in 2016 with an object of promoting Indian languages, oriental languages, veda sashtras, giving scholarship and financial assistance to students and feeding poor and needy. The assessee made application for registration on 25.02.2025 and the CIT(E) called on the assessee to furnish details of activity and documentary evidences on or before 29.08.2025. The assessee sought adjournment and since the application was time barring the CIT(E) rejected the registration stating that the assessee has not furnished any details. 3. We heard the Ld. DR and perused the material on record. From the perusal of the order of the CIT(E) we notice that the CIT(E) has denied the registration on the....

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....denied the registration on the ground that the application ought to have been submitted on or before 30.09.2024 and that the activities of the assessee are not charitable in nature. The CIT(E) further held that the assessee has not submitted any documentary evidences in support of the activities. The assessee is in appeal before the Tribunal against the order of the CIT(E). 5. We have heard the Ld. DR and perused the material available on record. The solitary issue in this appeal of assessee is the assessee' application seeking approval u/s. 80G of the Act was rejected by the CIT(E) for the reason that it was not filed within the due date prescribed u/s. 80G(5)(iii) of the Act. The relevant observations of the CIT(E) rejecting the assess....

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.... 4.4 Since there was no response from the applicant for the SCN dated 22/08/2025, Considering all the above legal provision, I am constrained to reject the application filed in Form 10AB seeking approval u/s. 80G. 4.5. Therefore, the application dated 25/02/2025 filed in Form No. 10AB under clause (iii) of first proviso to section 80G(5) of the Income Tax Act, 1961 seeking approval u/s. 80G is hereby REJECTED for the reasons stated in para 4.1 to 4.4 of this order." 6. The assessee filed an application seeking approval under section 80G of the Act on 28.09.2024 by invoking clause (iii) of the first proviso to section 80G(5) of the Act. The Ld. CIT(E) rejected the said application as not maintainable on the ground that it....

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....at the assessee did not file the application before 30.06.2024, as stipulated in CBDT Circular No. 7/2024 dated 25.04.2024. However, it is important to note that clause (iv) has been added to the first proviso to Section 80G(5) by the Finance Act, 2024, effective from 01.10.2024, allowing the assessee trust to apply for approval under section 80G(5) at any time following the commencement of its activities. This new provision is separate from clause (iii), which governed the previous timeline. The Ld. CIT(E) issued the order rejecting the application on 17.03.2025, after the amendment had taken effect, deeming it non-maintainable. Therefore, we direct the Ld.CIT(E) to consider the application submitted on 30.09.2024 as filed under clause (iv....