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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 ..... on of the assessee on merit cannot withdraw the approval which is automatically renewed by virtue of Finance Act, 2009 – in favour of assessee. - IT APPEAL NO. 4319 (DELHI) OF 2011 - - - Dated:- 16-3-2012 - RAJPAL YADAV, T.S. KAPOOR, JJ. S.K. Sarkar for the Appellant. Smt. Mamta Kochar for the Respondent. ORDER Rajpal Yadav, Judicial Member The assessee is in appeal before us against the order of Learned Director of Income-tax (Exemption) dated 09.09.2011, vide which he has rejected the application of the assessee for grant of approval under section 80G(5)( vi ) of the Income-tax Act, 1961. 2. The brief facts of the case are that the assessee Prayatn Trust was established in 1991, in order to develop the disadva ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bserved that assessee had declared income from sale of pickles, bags, beauty-parlour etc., therefore, it is not a charitable institution in the light of section 2(15) of the Income-tax Act, 1961. He rejected the request for grant of approval under section 80G(5) of the Act on the ground that conditions enumerated in section 80G(5)( i ) of the Act are not satisfied by the assessee. 3. The learned counsel for the assessee while impugning the order of learned Director of Income-tax (Exemption) submitted that the assessee has inadvertently filed the present application for renewal of approval under section 80G(5) of the Act. He pointed out that section 80G(5)( vi ) specifying the time limit for grant of approval has been amended by Finance ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed 12-12-2011] where a similar view has been taken. He placed on record the copy of the ITAT's order. 4. On the other hand, learned DR relied upon the order of the D.I.T. She pointed out that learned Director of Income-tax (Exemption) has denied the approval under sec. 80G(5) on merit, therefore, it amounts to withdrawal of approval in a way. The assessee has declared income from sale of pickles, bags, beauty-parlour etc. which is akin to carrying out any business activities, hence, its activities are not of a charitable nature and it is not entitled for approval under section 80G(5) of the Act. 5. We have duly considered the rival contentions and gone through the record carefully. The assessee is an old trust established in 1991. I ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... - This amendment has been made applicable w.e.f. 1st October 2009. Accordingly, existing approvals expiring on or after 1st October 2009 will be deemed to have been extended in perpetuity unless specially withdrawn. However, in case of approval expiring before 1st October, 2009, these will have to be renewed and once renewed these shall continue to be valid in perpetuity, unless specifically withdrawn". 7. The approval granted on 13.8.2007 under section 80G(5)( vi ) of the Act to the assessee was valid up to 31.3.2010 meaning thereby, the moment, the amendment to section 80G(5)( vi ) by virtue of Finance Act, 2009 has been effected, the approval available to the assessee under sec. 80G(5)( vi ) of the Act would be deemed to have been in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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