80G approval for newly formed charitable trust cannot be denied merely because activities have not yet begun.

Approval under section 80G(5)(vi) could not be refused to a newly constituted charitable trust merely because its activities had not yet commenced. The trust already held registration under section 12AA, supporting its charitable objects, and the genuineness test could not be applied in the same manner as for an established trust with an operating track record. Where the trust was still at a formative stage and no specific non-fulfilment of the statutory conditions for approval was recorded, rejection on the ground of non-verifiable activities was premature. Approval under section 80G(5)(vi) was therefore directed to be granted.

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Issues: Whether denial of approval under section 80G(5)(vi) to a newly constituted charitable trust was justified on the ground that its activities had not yet commenced and the genuineness of its activities could not be verified.

Analysis: The trust had been recently formed and had already been granted registration under section 12AA, indicating that its objects were charitable. In the case of a newly set up trust, the requirement of verifying genuineness of activities cannot be applied in the same manner as it would be for an existing trust that has been carrying on activities for some time. Where the trust is still at a formative stage, rejection merely because activities have not yet been undertaken is premature. No specific non-fulfilment of the conditions prescribed for approval under section 80G(5) was recorded.

Conclusion: The denial of approval under section 80G(5)(vi) was not justified, and the approval was directed to be granted in favour of the assessee.

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