2019 (5) TMI 1545

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....(Exemptions), Lucknow. The ld. CIT (Exemptions), rejected the application and dismissed the appeal of the assessee, observing, as below: "3. I have considered the material available on record. It is important to note that as per norms mandated by law mere submission of documents is not the sole criteria for approval u/s 80G(5) of the Income Tax Act, 1961. The approval u/s 80G(5) is not a mechanical process wherein the according of registration of u/s 12AA/10(23C) of the Income Tax Act, 1961 and filing of documents at one end would result in the issuance of approval u/s 80G(5) at the other. It is important that the application and the supporting documents duly pass the test as mandated by law for according the recognition u/s 80G(5)....

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....ssee society has been granted registration under section 12AA(1)(b)(i) of the Act by the ld. CIT(E), Lucknow and the same is still continuing; that the assessee society had filed reply in response to the queries raised by the ld. CIT(E) vide letter dated 25/10/2017; and that the ld. CIT(E) rejected the application concluding that the assessee society is not engaged in any charitable purpose, which is not correct. The ld. A.R. of the assessee submitted that the reasons given by the ld. CIT(E) for rejecting the application of the assessee society, are not correct and justifiable and is based on surmises and conjectures. Therefore, the order of the ld. CIT(E) may be quashed and he may be directed to grant approval to the assessee society under....

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.... of law that at the time of granting approval under Section 80G of the Act, what is to be examined is the object of the trust and so far as the aspect of income is concerned, the same can be very well examined by the AO at the time of framing assessment. We note that at the time of granting approval u/s 80G of the Act, only the object of trust is required to be examined and, therefore, assessee's application seeking approval u/s. 80G(5) of the Act could not be rejected on ground that the assessee society is not engaged in charitable activities. 7. In 'Hiralal Bhagwati vs. CIT' (supra), the Hon'ble Gujarat High Court has held that once the registration under section 12A(1) of the Act was granted, the Income Tax Officer was not jus....