9911796707
TMI BlogPeriod of validity of approvals amended vide Taxation Laws (Amendment) Act, 2006 under Section 10(23C) (iv), (v), (vi) or (via) and Section 80G (5) of the IT Act-clarification reg.X X X X Extracts X X X X X X X X Extracts X X X X ..... ovals granted by the Chief Commissioners of Income Tax or Directors General of Income Tax under sub-clauses (iv), (v), (vi) and (via) of Section 10(23C) and by the Commissioners of Income Tax or Directors of Income Tax under Section 80G (5) of the Income Tax Act, 1961 . 2. It has also been noticed by the Board that different field authorities are interpreting the provisions relating to the period of validity of the above approvals in a different manner. The following instructions are accordingly issued for the removal of doubts about the period of validity of various approvals referred to above. 3. Sub-Clause (iv) and (v) of Section 10(23C) were amended by Taxation Laws (Amendment) Act, 2006 by insertion of the following proviso ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r sub-clause (v), on or after 13.07.2006 will be valid until withdrawn and there will be no requirement on the part of the assessee to seek renewal of the same after three years. The intention of legislature that the approvals under Section 10 (23C) (iv) (v) after the cut off date mentioned above would be a one time approval which would be valid until withdrawn, is thus sufficiently clear. 4. Approvals under Sub-Clause (vi) and (via) of Section 10 (23C) are governed by the procedure contained in Rule 2CA . Rule 2CA was amended w.e.f. 1.12.2006, inter alia by substitution of the existing sub-rule 3 by a new provision which is reproduced below:- "(3) The approval of the Central Board of Direct Taxes or Chief Commissioner or Di ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to be approved by the Commissioner of Income-tax in accordance with the rules prescribed in rule 11AA of the Income-tax Rule, 1962 . The proviso to this clause provides that any approval granted under this clause shall have effect for such assessment year or years, not exceeding five assessment years, as may be specified in the approval. Due to this limitation imposed on the validity of such approvals, the approved institutions or funds have to bear the hardship of getting their approvals renewed from time to time. This is unduly burdensome for the bona fide institutions or funds and also leads to wastage of time and resources of the tax administration in renewing such approvals in a routine manner. Therefore, it is proposed to omit ..... X X X X Extracts X X X X X X X X Extracts X X X X
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