TaxTMI 
TaxTMI 
2012 (7) TMI 174
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....y 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 rejecting the application u/s 80 G and, therefore, rejection of exemption u/s 80-G was not warranted. 5. That the Ld. CIT-I has already erred in passing the order u/s 80-G, since the application for renewal has inadvertently been filed by the assessee and stood withdrawn and, therefore, the order as passed by the CIT-I, withdrawing the exemption u/s 80G was nonest. 3. The only grievance of the assessee in this appeal relates to renewal of exemption u/s 80G(5) of the Act. 4. Briefly stated, the facts of the case are that the assessee filed application for renewal of exemption u/s 80G of I.T. Act, 1961 on 27.12.2010. The last time exemption was granted vide order No. CIT/Ldh/Tech/80G/16/2007-08/9634 dated 19.3.2008 for the period from 1.4.2007 to 31.3.2010 relating to assessment years 2008-09 ....
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....aised on various other objects and regarding possession of certain Assets. In view of the above, the CIT(A) held that exemption u/s 80G of the Income-tax Act, 1961 cannot be allowed to the assessee's Society and therefore, rejected the application of the assessee. 6. Now the assessee is in appeal before the Tribunal. Shri Sudhir Sehgal, Ld. Counsel for the assessee submitted that earlier as per provisions contained in clause (vi) to sub-section (5) of Section 80G, the approval was to be granted by the 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 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 ....
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....tant case, the approval was granted to the assessee up to 31-3-2010, therefore, in view of the aforesaid omission of the proviso to section 80G(5)(vi) of the Act vide Finance (No. 2) Act, 2009. Therefore now approval once granted shall continue to be valid in perpetuity. The 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 2009-10 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. Due to this limitation imposed on the validity of such approvals, the approved institutions or funds have to bear the hardship of get....
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....ch provisions of section 80G(5)(vi ) has been withdrawn, the provisions contained in section 293C read as under :- "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 the Act, it is crystal clear that even if any Income-tax Authority wants to withdraw approval, he shall issue a show-cause notice against the proposed withdrawal to the assessee concerned and after giving a reasonable opportunity of being heard shall/withdraw approval after recording reasons for doing so. The use of the wor....