Section 80G approval cannot be denied by importing Bombay Public Trust Act breaches where statutory conditions are otherwise met.

Approval under Section 80G(5) of the Income-tax Act, 1961 cannot be refused by importing a condition from the Bombay Public Trust Act, 1950 where the trust otherwise satisfies the statutory requirements for approval. An alleged borrowing of funds without prior permission under Section 36A(3) of the Bombay Public Trust Act did not, by itself, disqualify the trust under the Income-tax Act, and the absence of cancellation proceedings under Section 12AA also supported the trust's genuineness for income-tax purposes. Approval under Section 80G was therefore justified.

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Issues: Whether approval under Section 80G could be denied on the basis of an alleged breach of the Bombay Public Trust Act, 1950 and whether such breach, by itself, meant that the trust was not genuine.

Analysis: The trust had satisfied all conditions specified in Section 80G(5) of the Income-tax Act, 1961. The mere allegation that funds were borrowed without prior permission under Section 36A(3) of the Bombay Public Trust Act, 1950 did not create an additional disqualification for approval under Section 80G, because the Income-tax Act did not prescribe such a condition. The absence of any proceedings by the Revenue to cancel registration under Section 12AA also supported the position that the trust remained genuine for income-tax purposes.

Conclusion: Denial of approval under Section 80G on the ground of alleged contravention of the Bombay Public Trust Act, 1950 was not justified, and the trust was entitled to approval.

Ratio Decidendi: When a trust satisfies the statutory conditions for approval under Section 80G(5) of the Income-tax Act, 1961, approval cannot be refused by importing extraneous conditions from another enactment.

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