/uploads/files/circular-7-2010.pdf

The Income Tax Department, providing clarification on the period of validity of approvals granted under certain sections of the Income-tax Act, 1961. The Board has noticed different interpretations by field authorities and has issued instructions to remove doubts about the period of validity of these approvals. The circular also mentions the amendment made to certain sub-clauses by the Taxation Laws (Amendment) Act, 2006.

The circular provides clarification regarding the period of validity of approvals issued under section 10(23C)(iv), (v), (vi), or (via) and section 80G(5) of the Income-tax Act, 1961.

Here are the key points:
1. Amendment to Section 10(23C)(iv) and (v): The amendment states that any notification issued by the Central Government under sub-clause (iv) or sub-clause (v) will be valid until withdrawn, and there will be no requirement for the assessee to seek renewal after three years.
2. Amendment to Section 10(23C)(vi) and (via): Any approval issued on or after 1-12-2006 under sub-clause (vi) or (via) of section 10(23C) is a one-time approval, which will be valid until withdrawn.
3. Amendment to Section 80G(5)(vi): The proviso to this section, which specified the validity of approvals for not exceeding five assessment years, was deleted. The approval once granted shall continue to be valid in perpetuity, unless specifically withdrawn by the Commissioner.
4. Rule 2CA Amendment: The approval of the Central Board of Direct Taxes or Chief Commissioner or Director General, granted before 1-12-2006, shall be valid for a period not exceeding three assessment years.
5. Reiteration of Validity: Any approval under section 80G(5) on or after 1-10-2009 is a one-time approval, which will be valid until withdrawn.
These clarifications remove doubts about the period of validity of various approvals and provide clear guidelines for the same.