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TMI Blog2011 (10) TMI 672X X X X Extracts X X X X X X X X Extracts X X X X ..... law as the assessee was not under an obligation to seek renewal as approval granted to it shall be deemed to have been extended in perpetuity. The aforementioned decision of Hon’ble Allahabad High Court in the case of Babu Hargovind Dayal Trust [2011 (2) TMI 1199 - Allahabad High Court] also support this proposition. Therefore, we vacate the order of ld. DIT (E) vide which the renewal application filed by the assessee for approval u/s 80G has been rejected. It is held that the approval granted to the assessee u/s 80G will act in perpetuity unless it is specifically withdrawn by the ld. DIT (E). The appeal filed by the assessee is allowed in the manner aforesaid. - ITA No. 3895/Del/2011 - - - Dated:- 28-10-2011 - I.P Bansal, Judicial Mem ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l of exemption to the appellant society. 5. That the rejection of renewal of exemption is further bad in law, as no reasonable and proper opportunity if any was ever afforded to the appellant society to present their case before the DI (Exemption),because the notice alleged to be issued were not received/served upon to them. 6. That appellant society assails their rights to amend, alter or change any grounds of appeal of any time even during the course of hearing of instant appeal. 2. The assessee being a charitable institution filed an application for renewal of approval u/s 80G(5) on 10th March, 2011. The assessee was enjoying approval u/s 80G vide order dated 26th April, 2007 passed u/s 80G(5)(vi) of the Act for the per ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... renewal has been done away with and this position of law has been made clear by the CBDT vide its Circular No.7/2010 (F.No.197/21/2010-ITA-I dated 27th October, 2010). He has placed on our record a copy thereof wherein the Board has issued certain clarification with regard to period of validity of approvals inter alia including u/s 80G (5). In para 5of the said Circular it has been stated as under:- 5. As regards approvals granted upto 1-10-2009 under section 80G by the Commissioners of Income-tax/Directors of Incometax, proviso to section 80G(5)(vi) clarified that any approval shall have effect for such assessment year or years not exceeding five assessment years as may be specified in the approval. The above proviso was deleted by t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... effect from 1st day of October, 2009. Accordingly, existing approvals expiring on or after 1st October, 2009 shall be deemed to have been extended in perpetuity unless specifically withdrawn. It appears that some doubts still prevail about the period of validity of approval under section 80G subsequent to 1-10-2009, especially in view of the fact that no corresponding change has been made in Rule 11A(4). To remove any doubts in this regard, it is reiterated that any approval under section 80G(5) on or after 1-10-2009 would be a one time approval which would be valid till it is withdrawn. 5. He further submitted that interpreting the statutory provisions in the light of the omission of proviso to Section 80G (5)(vi), Hon ble All ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gone through the provisions of Section 80G(5). Clause (vi) of sub-section (5) of Section 80G stipulates for the non-taxability of donations received by an institution which inter alia includes charitable institution registered u/s 12 of the Act. The fundamentals of sub-section (5) of Section 80G is that 80G approval will be granted to the charitable institutions on the same line as the registration to a charitable institution is granted u/s 12A. The assessee is already enjoying benefit of registration as charitable institution which is not shown to be withdrawn. It applied for renewal u/s 80G(5)(vi) as the validity period of already granted approval had expired. Before omission of the proviso to Section 80G(5) (vi) by the Finance (No.2) Ac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... so is interpreted to mean that the approval once granted shall continue to be valid in perpetuity. At the same time it has been mentioned that the Commissioner will also have the power to withdraw the approval if the commissioner is satisfied that the activities of such institution or fund are non-genuine or are not being carried out in accordance with the objects of the institution or fund. No material whatsoever has been brought on record to suggest that the approval granted by the department to the assessee u/s 80G has ever been withdrawn. What has been considered by the ld. DIT (E) in his order is the application filed by the assessee for renewal of approval which cannot in any manner be interpreted as withdrawal of approval u/s 80G. No ..... X X X X Extracts X X X X X X X X Extracts X X X X
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