80G approval validity continues until withdrawal where the CBDT circular applies, and fixed expiry cannot stand.

The validity period of an approval certificate under section 80G(5)(vi) was considered in light of Rule 11AA and the applicable CBDT circular. The Tribunal noted that an earlier coordinate Bench had already held that the circular made existing approvals continue indefinitely from the notified date unless specifically withdrawn, and that a beneficial circular is binding on the Revenue. On that basis, the certificate could not remain confined to a fixed end date once the circular applied, and it was required to be modified so that approval remained valid from assessment year 2010-11 onwards until withdrawn in accordance with law.

---

---

Issues: Whether the exemption certificate under section 80G was required to be modified so as to remain valid till withdrawn in accordance with law.

Analysis: The controversy turned on the validity period of the approval granted under section 80G(5)(vi) and the effect of Rule 11AA. The Tribunal noted that the issue had already been decided in an earlier coordinate Bench decision holding that the relevant CBDT circular made existing approvals, on and after the notified date, continue in perpetuity unless specifically withdrawn. It also proceeded on the settled principle that a circular beneficial to the assessee is binding on the Revenue. On that basis, the validity period specified in the impugned certificate could not be confined to a fixed end date once the governing circular applied.

Conclusion: The certificate was required to be modified so that the approval remained valid from the assessment year 2010-11 onwards till withdrawn as per law, in favour of the assessee.

---