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TMI Blog2012 (6) TMI 515X X X X Extracts X X X X X X X X Extracts X X X X ..... y rejecting the permission granted to the assessee being a Charitable Trust U/s 80G(5) of the Income Tax Act, 1961 read with rules without making an objection on the registration granted Under Section 12 AA of the Act. 2. That the learned CIT-I, Ludhiana has erred in law and on facts by not considering the reply of assessee in his order and suo-moto rejected the permission granted to the assessee for being a Charitable Trust u/s 80G of Income Tax Act, 1961. 3. That the learned CIT-I, Ludhiana has erred in law and on facts in withdrawal of exemption u/s 80G without fulfilling the requirements of the law such as issuance of show cause notice, compliance of circular dated 27-10-2010 etc. 4. That the learn ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vide its application dated 31.5.2011, withdrew its application dated 25.4.2011 stating as under:- "Kindly refer tour application dated 25.04.2011 receipt No. 391, for approval of donation u/s 80G(5)(vi). In this regard, it is submitted that we have now come to know that the Finance bill 2009, has omitted section 80G(5)(vi) w.e.f. 1.10.2009. Moreover, the Board has issued a Circular No. 7/2010 dated 27.10.2010 clarifying in para 5 that existing approvals expiring on or after 1.10.2009, shall be deemed to have been extended in perpetuity unless specifically withdrawn. In our case approval was granted for the period 1.4.2008 to 31.3.2011. Hence you are requested to consider our application as withdrawn as statutorily no such approval is req ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e CIT in accordance with rules prescribed in Rule 11AA and as per the proviso to Section 80G(5)(vi), the approval was to be renewed from time to time. However, considering the hardship, the Legislature in all its wisdom has sought to omit this proviso on 1st October, 2009. Therefore, now approval once granted shall be continue to be valid in perpetuity. In the instant case, the approval was granted by the CIT upto 31.3.2011, therefore, in view of the aforesaid omission of the proviso to Section. 80G(5)(vi), the approval once granted shall continue to be valid in perpetuity. He further submitted that even if the assessee by ignorance or inadvertently filed an application for renewal, the CIT was required to decide the same in accordance with ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 8 and finally vide order dated 16-9-2008 from 1-4-2008 to 31-3-2010 by the ld. Commissioner of Income-tax-I, Lucknow. The copies of the said orders are placed at pages 41, 40 and 39 respectively of the assessee's paper book. Earlier as per provisions contained in clause (vi) to sub-section (5) of section 80G, the approval was to be granted by the ld. Commissioner of Income-tax in accordance with Rules prescribed in Rule 12AA of the Income-tax Rules, 1962 and as per the proviso to section 80G(5)(vi) of the Act, the approval was to be renewed from time to time. However, considering the hardship, the Legislature in all its wisdom has sought to omit this proviso on 1-10-2009 vide its Finance (No. 2) Act, 2009. Therefore now approval once grante ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (vi) of sub-section (5) of section 80G to provide that the approval once granted shall continue to be valid in perpetuity. Further, the Commissioner will also have the power of withdraw the approval if the Commissioner is satisfied that the activities of such institution or fund are not genuine or are not being carried out in accordance with the 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. However, in case of approvals expiring before 1st October, 2009, these will have to be renewed and once renewed these shall continue to be valid i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hority, who has been conferred upon the power under any provision of this Act to grant any approval to any assessee, the Central Government or the Board or such authority may, notwithstanding that a provision to withdraw such approval has not been specifically provided for in such provision, withdraw such approval at any time : Provided that the Central Government or Board or income-tax authority shall, after giving a reasonable opportunity of showing cause against the proposed withdrawal to the assessee concerned, at anytime, withdraw the approval after recording the reasons for doing so." 13. From the proviso attached to the section 293C of the Act, it is crystal clear that even if any Income-tax Authority wants to withdraw approval, he ..... X X X X Extracts X X X X X X X X Extracts X X X X
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