Section 293C gives a general power of withdrawal. Where the Central Government, the Board or an income-tax authority has been given power under any provision of the Act to grant an approval to an assessee, it may withdraw the approval at any time, even though that provision does not itself provide for withdrawal.
The proviso conditions the power: the approval may be withdrawn only after giving the assessee a reasonable opportunity of showing cause against the proposed withdrawal, and after recording reasons.
Operative consequences
An approval granted under any provision of the Act can be withdrawn even where that provision is silent on withdrawal.
A withdrawal without a show-cause opportunity, or without recorded reasons, does not meet the proviso.
The power is available "at any time".
Status
Section 293C is operative for assessment year 2026-27. It is not time-limited. The Finance Act, 2026 did not amend this section.
The 1961 Act governs assessment year 2026-27 and earlier; the Income-tax Act, 2025 governs tax year 2026-27 onwards. For this subject the 2025 Act provision is s. 529.
Function in the statutory architecture
Section 293C gives a general power of withdrawal. Where the Central Government, the Board or an income-tax authority has been given power under any provision of the Act to grant an approval to an assessee, it may withdraw the approval at any time, even though that provision does not itself provide for withdrawal.
The proviso conditions the power: the approval may be withdrawn only after giving the assessee a reasonable opportunity of showing cause against the proposed withdrawal, and after recording reasons.
Operative consequences
Status
Section 293C is operative for assessment year 2026-27. It is not time-limited. The Finance Act, 2026 did not amend this section.
The 1961 Act governs assessment year 2026-27 and earlier; the Income-tax Act, 2025 governs tax year 2026-27 onwards. For this subject the 2025 Act provision is s. 529.