80G registration must be tested under section 80G(5), with focus on charitable objects and genuine activities.

For permanent registration under section 80G, the relevant enquiry is under section 80G(5), not section 80G(2), which concerns donor deduction. Registration depends on whether the applicant's objects are charitable and whether its activities are genuine. Questions about application of funds and eligibility under sections 11 and 13 arise in assessment proceedings, not at the registration stage. On the facts stated, the assessee's objects were charitable and its activities were genuine, so the conditions for registration were satisfied and the rejection was unsustainable.

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Issues: Whether rejection of the assessee's application for permanent registration under section 80G was sustainable when the authority applied section 80G(2) instead of section 80G(5), and whether the assessee satisfied the conditions for grant of registration.

Analysis: The assessee's objects were charitable and its activities were found to be genuine. The authority, while considering the application for registration, relied on section 80G(2), which governs deduction to donors and not the grant of registration. The relevant provision for deciding registration is section 80G(5). At the stage of registration, the enquiry is confined to the charitable nature of the objects and the genuineness of the activities; issues relating to application of funds or the benefit under sections 11 and 13 are matters for assessment proceedings.

Conclusion: The assessee satisfied the conditions under section 80G(5) and was entitled to registration under section 80G. The rejection was unsustainable and the assessee succeeded.

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