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TMI Blog2012 (7) TMI 174X X X X Extracts X X X X X X X X Extracts X X X X ..... IT APPEAL NO. 805 (CHD.) OF 2011 - - - Dated:- 17-5-2012 - H.L. KARWA, T.R. SOOD, JJ. Sudhir Sehgal and Ashok Goyal for the Appellant. Smt. Jyoti Kumar for the Respondent. ORDER H.L. Karwa, Vice-President This appeal filed by the assessee is directed against the order of CIT-I, Ludhiana dated 16.6..2011 passed u/s 80G(5) of the Income-tax Act, 1961 (in short 'the Act') read with Rule 11AA(5) of Income-tax Rules, 1962. 2. In this appeal, the assessee has raised the following grounds:- 1. That the CIT-I, Ludhiana has erred in rejecting the application filed by the appellant society for grant of exemption u/s 80G of the Income-tax Act, 1961. 2 That the application u/s 80G has been rejected against the facts and circumstances of the case. 3. That the Ld. CIT-1, Ludhiana has erred in not considering that the appellant society was old one and/had already been granted exemption u/s BOG up to 31/3/2010. 4. That the Ld. CIT-I has failed to consider the fact that in view of the circular No. 5, dated 30.06.2010, the exemption already granted u/s 80G is deemed to be in perpetuity and, therefore, there was no justification in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion receipts in the past, for the religious purpose as mentioned above. ( iii ) No evidence of permission to receive donations in foreign currency from abroad has been filed in spite of specifically asked for. ( iv ) The society is merely one man show particularly keeping in view the fact that the members of the executive of the society are appointed, continue to work and are removed at the pleasure of Patron-in-Chief. ( v ) No reply filed to vital question raised on various other objects and regarding possession of certain Assets. In view of the above, the CIT(A) held that exemption u/s 80G of the Income-tax Act, 1961 cannot be allowed to the assessee's Society and therefore, rejected the application of the assessee. 6. Now the assessee is in appeal before the Tribunal. Shri Sudhir Sehgal, Ld. Counsel for the assessee submitted that earlier as per provisions contained in clause (vi) to sub-section (5) of Section 80G, the approval was to be granted by the CIT in accordance with rules prescribed in Rule 11AA and as per the proviso to Section 80G(5)(vi), the approval was to be renewed from time to time. However, considering the hards ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... proval was to be granted by the ld. Commissioner of Income-tax in accordance with Rules prescribed in Rule 12AA of the Income-tax Rules, 1962 and as per the proviso to section 80G(5)(vi) of the Act, the approval was to be renewed from time to time. However, considering the hardship, the Legislature in all its wisdom has sought to omit this proviso on 1-10-2009 vide its Finance (No. 2) Act, 2009. Therefore now approval once granted shall continue to be valid in perpetuity. In the instant case, the approval was granted to the assessee up to 31-3-2010, therefore, in view of the aforesaid omission of the proviso to section 80G(5)(vi) of the Act vide Finance (No. 2) Act, 2009. Therefore now approval once granted shall continue to be valid in perpetuity. The memo explaining the provisions in Finance (No. 2) Bill, 2009 as reported in 314 ITR 193 (St.) at page 194 reads as under:- "This amendment will take effect from 1st day of April, 2009 and shall accordingly, apply in relation to assessment year 2009-10 only. Further as per clause (vi) of sub-section (5) of section 80G of the Income-tax Act, 1961, the institutions or funds to which the donations are made have to be approved b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e or inadvertently filed an application for renewal, the CIT was required to decide the same in accordance with the amended provisions. As regards to the contention of the ld. D.R. that the provisions contained in section 293C of the Act enables the CIT to withdraw approval is concerned, it is noticed that the said section has been inserted by the Finance (No. 2) Act, 2009 with effect from 1-10-2009 i.e., from the date on which provisions of section 80G(5)(vi ) has been withdrawn, the provisions contained in section 293C read as under :- "293C. Where the Central Government or the Board or an income-tax authority, who has been conferred upon the power under any provision of this Act to grant any approval to any assessee, the Central Government or the Board or such authority may, notwithstanding that a provision to withdraw such approval has not been specifically provided for in such provision, withdraw such approval at any time : Provided that the Central Government or Board or income-tax authority shall, after giving a reasonable opportunity of showing cause against the proposed withdrawal to the assessee concerned, at anytime, withdraw the approval after recording the re ..... X X X X Extracts X X X X X X X X Extracts X X X X
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