9911796707
TMI Blog2011 (11) TMI 501X X X X Extracts X X X X X X X X Extracts X X X X ..... r of Income Tax (Exemption) has erred in rejecting the application of the assessee for renewal of approval u/s 80G (5) (vi) of the Income Tax Act, 1961. 2. That DIT (Exemptions) ought to have appreciated that the Appellant had not violated any of the conditions laid down in section 80G (5)(i) to (v) of the Income Tax Act, 1961 and ought to have renewed the recognition as prayed for. 3. The Ld. Director of Income tax (Exemptions) has erred in law and on facts for not according proper opportunity to the Appellant for submitting vouchers etc. which are otherwise available with the Appellant. 4. The Ld. Director of Income tax (Exemptions) has erred in law for not considering the CBDT Circular no. DIT (E) 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 5 of 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 Income-tax/Directors of Income-tax, proviso to section 80G(5)(vi) clarified that any approval shall have effect for such assessment year or years not exceeding five assessment years as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he objects of the institution or fund. This amendment will take effect from 1st day of October, 2009. Accordingly, existing approvals expiring on or after 1st October, 2009 shall be deemed to have been extended in perpetuity unless specifically withdrawn.' It appears that some doubts still prevail about the period of validity of approval under section 80G subsequent to 1-10-2009, especially in view of the fact that no corresponding change has been made in Rule 11A(4). To remove any doubts in this regard, it is reiterated that any approval under section 80G(5) on or after 1-10-2009 would be a one time approval which would be valid till it is withdrawn." 5. He further submitted that interpreting the statutory provisions in the light of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d both the parties. We have also carefully gone through the provisions of Section 80G(5). Clause (vi) of sub-section (5) of Section 80G stipulates for the non-taxability of donations received by an institution which inter alia includes charitable institution registered u/s 12 of the Act. The fundamentals of sub-section (5) of Section 80G is that 80G approval will be granted to the charitable institutions on the same line as the registration to a charitable institution is granted u/s 12A. The assessee is already enjoying benefit of registration as charitable institution which is not shown to be withdrawn. It applied for renewal u/s 80G(5)(vi) as the validity period of already granted approval had expired. Before omission of the proviso to Se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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