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2016 (2) TMI 522 - HC - Income TaxValidity of approval issued under Section 10 (23 C) (vi) - whether in view of CBDT circular dated 27th of October, 2010, the petitioner was required, to file an application for exemption and if not, whether the Chief Commissioner could have rejected the application, for exemption? - Held that:- A perusal of Clause (4), reveals that approvals granted on or after 1st December, 2006, shall be valid till they are withdrawn. The argument by counsel for the revenue that the circular would come into effect from October, 2010, by reference to Clause (5) of the circular is not tenable as Clause (5) of the circular, applies to approvals granted under Section 80(4) and not to exemptions granted under Section 10 (23 ) (vi) of the Act. We, therefore, have no hesitation in holding that as Clause (4) of CBDT, circular No.7 of 2010, provides that an exemption once granted shall operate in perpetuity till withdrawn, the impugned orders passed by ignoring Clause (4) are contrary to law. The petition is allowed, the impugned orders are set aside and the Commissioner of Income Tax Exemption, Chandigarh, the officer empowered, to consider an application for exemption, is directed to pass a fresh order after taking into consideration Clause (4) of the CBDT circular.
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