Section 80G renewal limited to statutory conditions; alleged violations under Sections 11(5) and 13(1)(d)(iia) could not justify refusal.

While considering renewal of recognition under Section 80G, the authority's enquiry is confined to the statutory conditions for that recognition and does not extend to a broader assessment-style examination of alleged violation of Sections 11(5) and 13(1)(d)(iia). On the stated facts, the entity already held Section 12A registration and existing Section 80G recognition, and the material showed that the funds were used only for charitable objects; the donated shares had also been sold and the balance was nil. The refusal of renewal on the alleged contraventions was therefore unwarranted, and no substantial question of law arose.

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Issues: Whether, while considering renewal of recognition under Section 80G of the Income-tax Act, 1961, the authority could examine alleged violation of Sections 11(5) and 13(1)(d)(iia) of the Income-tax Act, 1961 and refuse continuation of exemption on that basis.

Analysis: The respondent had existing registration under Section 12A and recognition under Section 80G, and the undisputed material showed that the funds were being used only for charitable objects. The shares received by way of donation had been sold and the balance was nil. In that factual setting, the enquiry at the stage of renewal under Section 80G was confined to the statutory conditions for such recognition, and the authority was not justified in undertaking a broader assessment-style examination of alleged contravention under Sections 11(5) and 13(1)(d)(iia). The Tribunal's view that the denial of renewal on that basis was unwarranted did not suffer from perversity or arbitrariness.

Conclusion: The objection based on alleged violation of Sections 11(5) and 13(1)(d)(iia) could not sustain refusal of renewal under Section 80G, and the appeal raised no substantial question of law.

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