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TMI Blog2012 (5) TMI 93X X X X Extracts X X X X X X X X Extracts X X X X ..... e society. It was registered as a public charitable trust in 1992. The main objectives of the trust were to empower the marginalized sections of the society by building up their capabilities for a decent, dignified and independent life. In other words, it was helping in rehabilitating the physically handicapped persons. The trust has been granted registration under sec. 12AA read with section 12A vide No.FN-73/93-94 dated 18.8.1993. The registration has not to be withdrawn or cancelled. It is availing benefit under section 10(23C) of the Income-tax Act, 1961. The trust had applied for grant of approval under section 80G of the Act. In the past, such approval was granted to the trust vide order dated 13.8.2007. This approval was valid for th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ndment once approval granted, it will be perpetual unless cancelled or withdrawn by the competent authority. He further submitted that the Board has issued a Circular bearing No. 5 of 2010 which explained Finance Act, 2009. According to this circular, all approvals already granted to the assessee under sec. 80G, if expiring on or after 1st of October 2009 then it would be deemed to have been extended in perpetuity. The approval in the case of assessee was available up to 31.3.2010, meaning thereby, its approval is deemed to have been extended for perpetuity and the application moved by the assessee ought to have been dismissed as infructuous by the learned Director of Income-tax (Exemption) instead of rejecting it on merit. He further submi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... opment of downtrodden sections of the society. Registration under section 12AA for treating the assessee as a charitable institution, was granted on 18.8.1993, is still intact. Thus, it would suggest that activities of the assessee are of charitable nature. Learned Director of Income-tax (Exemption) has made reference towards the income resulted on account of sale of pickles, bags and beauty-parlour etc. but according to the assessee these were the activities in accordance with its aims and objects. It has been running days centres for empowering the women. It is not a new thing in this year. Learned Director of Income-tax (Exemption) has not narrated any circumstance which have been changed after 31.3.2010 up to this date, approval under s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e the application for renewal. The moment this application came to the learned Director of Income-tax (Exemption), he ought to have dismissed it as infructuous on the ground that assessee already enjoying the approval. If the learned Director of Income-tax (Exemption) had any reservation then he ought to have issued a notice for cancellation of the approval if the law permits to do so. The learned Director of Income-tax (Exemption) indirectly by rejecting the application of the assessee on merit cannot withdraw the approval which is automatically renewed by virtue of Finance Act, 2009. Therefore, we allow the appeal of assessee. The application under section 80G(5)(vi) filed by the assessee for grant of approval be treated as rejected for s ..... X X X X Extracts X X X X X X X X Extracts X X X X
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