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TMI Blog2011 (12) TMI 634X X X X Extracts X X X X X X X X Extracts X X X X ..... to be referred to as "The Act"). 2. We have heard the rival contentions and gone through the facts and circumstances of the case. The brief facts are that the assessee is a charitable Institution registered under section 12AA of the Act by DIT(Exemption), Kolkata vide order dated 30.06.2004. According to assessee, the Institution has been carrying on charitable activities like organizing eye operation camps and providing eye glasses and other connected services with the treatment of eyes in rural areas. According to assessee, the Institution has also been conducting mass community marriages in rural areas and also giving financial help to poor for marriages. The assessee stated the fact that certificate of exempt deduction under section 80 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... etuity unless specifically withdrawn.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these will have to be renewed and once renewed these shall continue to be valid in perpetuity, unless specifically withdrawn". 3. We find that a similar issue was decided on 28.02.2011 by Lucknow Bench 'A' of ITAT in ITA No. 674/Luc./2010 in the case of M/s. Association for Advocacy and Legal Initiatives, Lucknow -vs.- CIT-I, Lucknow, wherein in paras 10, 11, 12 & 13 Tribunal has observed as under : "10. We have considered the submissions of both the parties and carefully gone through the material available on record. In the instant case, it is not in dispute that the assessee-trust is registered with the Sub-Registrar, Lucknow, having ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e memo explaining the provisions in Finance (No.2) Bill, 2009 as reported in 314 ITR 193 (St.) at page 194 reads as under: "This amendment will take effect from 1st day of April, 2009 and shall accordingly, apply in relation to assessment year 2009-70 only. Further as per clause (vi) of sub-section (5) of section 80G of the Income-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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cular reads as under: "29.7. Applicability - This amendment has been made applicable w.e.f. 1st October 2009. Accordingly, existing approvals expiring on or after 1st October 2009 will be deemed to have been extended in perpetuity unless specially 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 in perpetuity, unless specifically withdrawn." 12. The aforesaid Circular is in favour of the assessee and 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. As regards to the contention of the Id. D.R. that the provisions co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he proposed withdrawal of approval granted u/s. 80G(5) of the Act. However, in the present case no such show cause notice has been issued to the assessee. Therefore, we do not see any merit in this contention of the lad that the provisions contained in section 293C of the Act enables the ld. Commissioner of Income Tax to withdraw approval. We, therefore, considering the totality of the facts as discussed hereinabove are of the view that the ld. Commissioner of Income Tax was not justified in withdrawing approval once granted because the Legislature in all its wisdom has sought to omit this proviso to section 80G(5)(vi) of the Act and after omission of the said proviso, the approval once granted shall continue to be valid in perpetuity unles ..... X X X X Extracts X X X X X X X X Extracts X X X X
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