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TMI Blog2012 (7) TMI 174X X X X Extracts X X X X X X X X Extracts X X X X ..... has erred in rejecting the application filed by the appellant society for grant of exemption u/s 80G of the Income-tax Act, 1961. 2 That the application u/s 80G has been rejected against the facts and circumstances of the case. 3. That the Ld. CIT-1, Ludhiana has erred in not considering that the appellant society was old one and/had already been granted exemption u/s BOG up to 31/3/2010. 4. That the Ld. CIT-I has failed to consider the fact that in view of the circular No. 5, dated 30.06.2010, the exemption already granted u/s 80G is deemed to be in perpetuity and, therefore, there was no justification in reje ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 10. Now, in view of Circular No. 5 dated 30.06.2010, exemption in the case u/s 80G is deemed to be in perpetuity. So, in the light of auto extension by virtue of circular mentioned on the application filed by renewal of exemption u/s 80G may please be treated as withdrawn. Thanking you, Yours faithfully, For Vishav Namdhari Sangat Society, Sd/-Vice-President" 5. The Ld. CIT did not accept the request of the assessee, observing as under:- "10(1) In view of the above discussion, it is clear that the society does not fulfil the conditions necessary for exemption u/s 80G(5), due to following reasons. (i) Two clauses i.e. clause (i) & ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ibed 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 assessee up to 31.3.2010, 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 the amended provisions. Shri S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 granted shal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... osed to omit the proviso to clause (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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bsp; "293C. Where the Central Government or the Board or an income-tax authority, 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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