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2019 (12) TMI 1203 - AT - Income TaxContinuance of approval U/s. 10(23C)(vi) in the prescribed form No. 56D - CIT (E) rejected the application - HELD THAT:- In the case of the assessees, the Revenue had earlier granted approval U/s. 10(23C)(vi) of the Act by examining the activities mentioned in the deed of the assessees societies. Thereafter, when the assessees societies had violated the conditions stipulated by the Ld. CIT while granting the approval U/s. 10(23C)(vi) of the Act, additions were made and the approval withdrawn for those assessment years. However, it cannot be presumed that the assessees societies is bound to err year after year by violating the provisions of section 10(23C)(vi) of the Act. It will not be appropriate to withdraw the approval or resist from granting approval U/s. 10(23C)(vi) of the Act when the assessees societies are conducting its charitable activities in the subsequent years sincerely and diligently for the benefit of the public at large without violating any of the conditions stipulated. Such action of the Revenue will deprive the beneficiaries of the assessees societies in obtaining the benefits which is detrimental to the larger interest of the public. As it appears from the orders of the Ld. CIT dated 29/09/2017, during the period 1/4/2016 till 29/09/2017, no violation is pointed out. Further, from the assessment order of the assessees for the AY 2015-16 dated 27/12/2017 and 22/12/2017 (cited supra) it is evident that there was no violation. In such circumstances, we fail to understand as to why the assessee societies have to be penalised which will ultimately result in hardships to the public at large Since during the relevant period the assessee societies has neither violated any of the provisions of section 10(23C)(vi) of the Act nor conducted itself detrimental to the conditions stipulated by the Ld. CIT while granting approval U/s. 10(23C)(vi) of the Act on the earlier instance, and further placing reliance on the Circular of the CBDT No.14/2015 dated 17/08/2015 and the decision o COUNCIL FOR THE INDIAN SCHOOL, CERTIFICATE EXAMINATIONS VERSUS DIRECTOR GENERAL OF INCOME TAX [2014 (5) TMI 898 - DELHI HIGH COURT] we are of the considered view that the decision of the Ld. CIT (E) to reject the application filed by the assessees U/s. 10(23C)(vi) is not justified. - Decided in favour of assessee.
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