TMI Blog2011 (11) TMI 501X X X X Extracts X X X X X X X X Extracts X X X X ..... ry obligation on the assessee to seek renewal of the approval, then, the application filed by the assessee has no meaning as the statutory provisions will prevail. There is no material on record according to which it can be said that the approval granted to the assessee u/s 80G (5) was specifically withdrawn and what is rejected by the impugned order is the renewal application of the assessee which does not have any meaning in law as the assessee was not under an obligation to seek renewal as approval granted to it shall be deemed to have been extended in perpetuity - in favor of assessee. - IT Appeal No. 4164 (Delhi) of 2011 - - - Dated:- 25-11-2011 - I.P. Bansal, A.N. Pahuja, JJ. Kamal Arora for the Appellant. Mrs. Anusha Khur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s enjoying approval u/s 80G vide order dated 9th July, 2008 passed u/s 80G(5)(vi) of the Act for the period from 1.4.2007 to 31st March, 2010. Such application filed by the assessee for renewal of approval u/s 80G has been rejected by ld. DIT (E). Copy of the application has been filed in the paper book at pages 1 to 6 of paper book. On the covering letter, which is filed on 3rd January, 2011 to seek renewal of exemption u/s 80G, subject has been mentioned as below:- "Sub: Application in Form 10G for renewal of deduction u/s 80G." 3. Along with the aforementioned covering letter, various documents were also filed. Ld. DIT (E) required the assessee to file certain other documents which are listed at page 1 of the impugned order. Certain ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tax Act, 1961, the institutions or funds to which the donations are made have to be approved by the Commissioner of Income-tax in accordance with the rules prescribed in rule 11AA of the Income-tax Rules, 1962. The proviso to this clause provides that any approval granted under this clause shall have effect for such assessment year or years, not exceeding five assessment years, as may be specified in the approval. Due to this limitation imposed on the validity of such approvals, the approved institutions or funds have to bear the hardship of getting their approvals renewed from time to time. This is unduly burdensome for the bona fide institutions or funds and also leads to wastage of time and resources of the tax administration in renewing ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ns of IT Act. In that case the application for renewal was made on 31st March, 2010 as said exemption was expiring after 1st October, 2009. It was held that the directions of CIT (A) for rejection of renewal application was not required to be maintained as by virtue of operation of law the exemption shall be deemed to be continued in perpetuity and it will continue so long as it is not withdrawn as per the provisions of the Act. He has also placed a copy of the said decision on our record and a copy was also given to the learned DR. Therefore, it is the case of the learned AR that directions of DIT (E) regarding rejection of renewal application filed by the assessee are not maintainable and should be vacated as the assessee by virtue of pro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... time of grant of approval, ld. DIT (E) vide order dated 9th July, 2008 had granted approval for the period from 1.4.2007 to 31st March, 2010. It is already mentioned that the assessee is enjoying registration u/s 12A (a) of the IT Act, 1961. The said registration has not been shown to be withdrawn and, thus, the assessee has always been treated as charitable institution registered u/s 12A(a) of the Act. The assessee, as its approval was expired on 31st March, 2010, had filed an application seeking the renewal on 3rd January, 2011. Firstly, it has to be seen that whether or not the assessee was under any obligation to seek such renewal. The aforementioned proviso has been omitted from 1.10.2009 and such omission of proviso has been interpre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ovisions will prevail. The interpretation of the statutory provision as well as the aforementioned Circular issued by the CBDT clearly states that the existing approvals expiring on or after 1st October, 2009 shall be deemed to have been extended in perpetuity unless specifically withdrawn. All the authorities working under the control of CBDT are bound to follow the instructions issued by the CBDT. Therefore, it has to be held that as assessee's existing approval was expiring on or after the 1st day of October, 2009, the same shall be deemed to have been extended in perpetuity unless specifically withdrawn. We have already mentioned that there is no material on record according to which it can be said that the approval granted to the asses ..... X X X X Extracts X X X X X X X X Extracts X X X X
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