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TMI Blog2012 (3) TMI 654X X X X Extracts X X X X X X X X Extracts X X X X ..... , then, w.e.f. 1.10.2009 there is nothing to seek renewal of the said approval as it shall be deemed to have been extended in perpetuity unless specifically withdrawn. It was stated at bar by the ld. Counsel of the assessee that the registration granted to the assessee is subsisting and it has not been even withdrawn till today. 2. In this view of the situation, after hearing both the parties, we find that this issue is covered by the earlier decisions of the Tribunal vide order dated 28th October, 2011 in the case of Educate India Society vs. DIT (E) in ITA No.3895/Del/2011 which is reproduced hereinbelow for the sake of convenience:- This is an appeal filed by the assessee. It is directed against the order passed by the Director of Income-tax (Exemptions) [DIT (E)] u/s 80G(5)(vi) of Income-tax Act, 1961 (the Act) read with Rule 11AA of Income-tax Rules, 1962 (the Rules). The grounds of appeal read as under:- 1. That the rejection orders passed u/s 80G(5)(vi) of the Act, are against the law and to the facts of the case. 1. That the ld. DIT (Exemptions) failed to appreciate that as per the amended provisions of law after 1st October, 09 the exemption already allowed/gr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... -appearance of the assessee, ld. DIT (E) has rejected the application of the assessee by observing that in the absence of documentary evidence of charitable activities and also misuse of corpus donation received from donors for a particular purpose, the assessee did not satisfy the conditions laid down u/s 80G(5) of the Act. The assessee is aggrieved by such order passed by ld. DIT (E) and, hence, has filed the aforementioned appeal. 4. At the outset, it was submitted by the learned AR that by omission of the proviso to Section 80G(5) (vi), the assessee s obligation to seek such 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 Incometax/ Directors of Income-tax, proviso to section 80G(5)(vi) clarified that any approval shall have effect fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t in the case of Babu Hargovind Dayal Trust vs. ITAT (2011) 199 Taxman 138 (All) has ruled that 80G exemption shall be deemed to be continued in perpetuity and it will continue so long as it is not withdrawn as per the provisions of IT Act. In that case the application for renewal was made on 31st March, 2010 as said exemption was expiring after 1st October, 2009. It was held that the directions of CIT (A) for rejection of renewal application was not required to be maintained as by virtue of operation of law the exemption shall be deemed to be continued in perpetuity and it will continue so long as it is not withdrawn as per the provisions of the Act. He has also placed a copy of the said decision on our record and a copy was also given to the learned DR. Therefore, it is the case of the learned AR that directions of DIT (E) regarding rejection of renewal application filed by the assessee are not maintainable and should be vacated as the assessee by virtue of provisions of law will enjoy the approval u/s 80G in perpetuity as it has been already granted with approval which fall beyond 1st October, 2009 and is upto 31st March, 2010. 6. On the other hand, relying upon the order pas ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... w to resolve such references the Board has clarified the omission of aforementioned proviso 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. Now, the question will be that whether by mere filing the application for renewal of approval u/s 80G the assessee can be held to be not entitled for the benefit of approval u/s 80G. In our opinion, where there is no statutory obligation on the assessee to seek renewal of the approval, then, the application filed by the assessee has no meaning as the statutory ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... To Commodore Garg Memorial Educational Trust, C/o Naval Construction Wing, Applied Mechanics Department, IIT, New Delhi. Please refer to your application filed in Form No.10G on 05.04.2010 seeking renewal of certificate issued u/s 80G of the Act. In this connection, it is brought to your notice that an amendment was made to section 80G (5) (vi) through Finance Act (No.2) 2009. In view of above amendment, the certificate issued earlier in your case for exemption u/s 80G vide this office Order No. DIT (E) 2006-2007/c-649/3379 dated 07.03.2007 which was valid upto 31.03.2010 is also valid from 01.04.2010 onwards till it is rescinded and subject to the same conditions and also subject to the condition that your case should not be hit by the newly inserted proviso to Section 2 (15) of the Act. This issues with the prior approval of Director of Income-tax (Exemptions) Delhi. (SATENDRA KUMAR) Income Tax Officer (Hqrs.) (E), Delhi. 4. In view of the above position, we find merit in the claim of the assessee and the appeal filed by the assessee is allowed. 5. In the result, the appeal is allowed. The order pronounced in the open court on 30.03.2012. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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