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TMI Blog2011 (10) TMI 672X X X X Extracts X X X X X X X X Extracts X X X X ..... and to the facts of the case. 2. That the ld. DIT (Exemptions) failed to appreciate that as per the amended provisions of law after 1st October, 09 the exemption already allowed/granted up till 31.03.10 shall be deemed to have been extended in perpetuity unless specifically withdrawn as contained in Board's Circular No.7/2010 (F.No.197/21/2010 ITA -I) dated 27.10.2010. 3. That the ld. DI (Exemption) was further wrong for not appreciating that the appellant society is already registered u/s 12A(a) of the Income Tax Act, 1961, for doing charitable activities and also fulfill the conditions laid down u/s 80G(5)(vi) of the Act, and granted exemption u/s 80G for the period from 01.04.07 to 31.03.10 vide orders dated 26.04.2007. 4. That ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of 80G certificate; photo copy of registration u/s 12A(a) of the Act; photo copy of ITR for the last three years; copy of audited balance sheets for the last three years, etc. From the order of Ld. DIT (E), it appears that the assessee did not appear in response to the notices issued by him. Therefore, taking into account the non-appearance of the assessee, ld. DIT (E) has rejected the application of the assessee by observing that in the absence of documentary evidence of charitable activities and also misuse of corpus donation received from donors for a particular purpose, the assessee did not satisfy the conditions laid down u/s 80G(5) of the Act. The assessee is aggrieved by such order passed by ld. DIT (E) and, hence, has filed the afor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rs, 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 such approvals in a routine manner. Therefore, it is proposed 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 activi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 ITA No.3895/Del/2011 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 provisions of law will enjoy the approval u/s 80G in perpetuity as it has been already granted with approval which fall beyond 1st October, 2009 and is upto 31st March, 2010. 6. On the other hand, relying upon the order passed by the DIT (E), it is the case of the learned DR that the assessee's application has rightly been re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... paper book. 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 10th March, 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 interpreted by the CBDT in aforementioned Circular No.7/2010 and it has been mentioned in the Circular that various references have been received by the Board from the field formations as well as from the members of public about the period ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... all 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 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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