Section 80G approval cannot be denied or cancelled without a proven statutory violation in the trust records.

Approval under Section 80G(5)(iii) cannot be refused or cancelled without a demonstrated breach of the statutory conditions. The trust had produced balance sheet, income and expenditure account, bank statements, bank book, narrations and trustee particulars, and the record did not disclose any violation warranting denial of approval or cancellation of registration. On that basis, the rejection of approval and the consequential cancellation of registration were quashed, and relief was directed to be granted to the assessee.

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Issues: Whether rejection of approval under Section 80G(5)(iii) and cancellation of the trust's registration were sustainable in the absence of any identified statutory violation.

Analysis: The trust had furnished the balance sheet, income and expenditure account, bank statements, bank book, narrations and trustee particulars for the relevant period. The record did not disclose any breach of the conditions required for approval under Section 80G(5)(iii) of the Income-tax Act, 1961. The impugned rejection was therefore found unsustainable.

Conclusion: The rejection of approval under Section 80G(5)(iii) and the cancellation of the registration were quashed, and relief was directed to be granted to the assessee.

Final Conclusion: The assessee succeeded and the denial of approval and consequential cancellation were set aside.

Ratio Decidendi: In the absence of any demonstrated violation of the statutory conditions for approval, registration or approval under Section 80G cannot be refused or cancelled.

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