Commissioner Of Income-Tax vs General Magnets Ltd. on 3 July, 2001
17. Assuming by mistake the approval has been given to the wrong
society. But for mistake of the department, why should the assessee
suffer? That withdrawal of approval to the society with retrospective
effect is itself bad. No assessee should suffer for mistake of the
Department. The Department has the power of withdrawal but in
such cases withdrawal can be only with prospective effect. If the
donation to the approved society is genuine in that case withdrawal
with retrospective effect does not affect the right of the assessee for
deduction of the amount which has accrued to the assessee on the
basis of the payment to an approved society under section 35CCA of
the Act."