TMI Blog2014 (5) TMI 821X X X X Extracts X X X X X X X X Extracts X X X X ..... (23C)(vi) of the Act for the AYs 2008-09, 2009-10 and 2010-11 was a redundant application as there was no requirement to apply for extension of the approval as the approval in the case of the assessee was granted after 1.12.2006 on 20.12.2007 - The approval so granted by the Chief Commissioner of Income Tax was a one-time affair, which was to continue till it was withdrawn under the proviso - the order dated 17.3.2009 was otiose having no effect in law - The order only rejects the application for extension of the approval for the AYs 2008-09, 2009-10 and 2010-11 - The original order of approval dated 20.12.2007 still continues to remain in force inspite of the rejection of the assessee's application – thus, the order of the CCIT is set asi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the approval. Accordingly, the petitioner applied for extension of the approval on 25.3.2008 for the assessment years 2008-09, 2009-10 and 2010-11. This application was rejected by the Chief Commissioner of Income Tax by the impugned order dated 17.3.2009. The petitioner, being aggrieved by the rejection of his application, has filed the present writ petition on various grounds. The learned counsel for the petitioner made a submission that in view of the circular No.7 of 2010, dated 27.10.2010, the Central Board of Direct Taxes (hereinafter referred to as the CBDT ) has clarified that it was not necessary to seek further approval or extension of the earlier approval granted under Section 10 (23C)(vi) where approval was granted after ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ad in isolation, without any further guidance as was given by way of explanatory notes to Finance Act, 2006 in respect of amendment of sub-clauses (iv) (v) of Section 10(23C), the above amendment leaves some scope for doubt about the period of validity of the approval under Section 10(23C)(vi) and (via) on or after 1.12.2006. For the removal of doubts if any in this regard, it is clarified that as in the case of approvals under sub-clauses (iv) (v) of Section 10(23C), any approval issued on or after 1.12.2006 under sub-clause (vi) or (via) of that sub-section would also be a one time approval which would be valid till it is withdrawn. The CBDT clarified that in view of the amendment of Rule 2CA w.e.f. 1.12.2006, the explanatory note ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nuine; or (B) are not being carried out in accordance with all or any of the conditions subject to which it was notified or approved, it may, at any time after giving a reasonable opportunity of showing cause against the proposed action to the concerned fund or institution or trust or any university or other educational institution or any hospital or other medical institution, rescind the notification or, by order, withdraw the approval, as the case may be, and forward a copy of the order rescinding the notification or withdrawing the approval to such fund or institution or trust or any university or other educational institution or any hospital or other medical institution and to the Assessing Officer. The aforesaid proviso was i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d by the Chief Commissioner of Income Tax dated 20.12.2007 being a one time affair continues to remain in force till it is withdrawn under the proviso as extracted aforesaid. Similar view was held by a Division Bench of the Lucknow Bench of this High Court in State Innovations in Family Planning Services Project Agency vs. Union of India and others, Writ Petition No.6715(M/B) of 2013, decided on 4.9.2013. In the light of the aforesaid, the impugned order passed by the Chief Commissioner of Income Tax is quashed. The writ petition is allowed. It is hereby clarified, that it would be open to the authorities to proceed, if they are so advised against the petitioner under the proviso as extracted aforesaid. - - TaxTMI - TMITax - Inco ..... X X X X Extracts X X X X X X X X Extracts X X X X
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