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2015 (5) TMI 117 - HC - Income TaxEntitlement to the benefit of renewal of recognition under Section 80G - Tribunal upholding the order of Director of Income Tax (Exemptions) that the appellant activity is in the nature of trade, commerce or business and hence is not entitled to renew the recognition under Section 80G of the Act? - whether an order passed beyond the period prescribed under the law is valid? - Held that:- Reading of Rule 11AA of the Income Tax Rules makes it clear that the Commissioner shall pass an order either granting the approval or rejecting the application within six months from the date on which such application was made. Therefore, it is mandatory that if the application is not disposed of within six months from the date on which the application is made, the Commissioner has no jurisdiction either to pass an order granting the approval or rejecting it. It is not in dispute that the Commissioner did not pass any order within the period prescribed. He has passed an order on 06.10.2008 i.e., beyond the period prescribed under the aforesaid rule. Therefore, on the date the order was passed, the Commissioner had no jurisdiction. Therefore, it is an order passed without jurisdiction. This aspect has not been properly considered and appreciated by the authorities. Liberty is reserved to the assessee to make a fresh application for benefit of Section 80G of the Act. - Decided in favour of the assessee
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