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2014 (2) TMI 561 - AT - Income TaxRejection of application of renewal of approval u/s 80G(5)(vi) of the Act – Held that:- The renewal of approval was rejected on the ground that clause-7 of the trust deed gives unbridled power to the trustees to apply funds and income of the trust according to their own discretion – Donation given to another registered charitable trust cannot be a ground for not granting approval u/s 80G (5)(vi) of the Act - approval u/s 80G(5) is to be granted to a charitable trust or institution if it fulfils the condition enumerated in clause(i) to(v) of section 80G(5) - the amount of Rs.5 lakh has been reflected in the income and expenditure account which forms part of balance-sheet it cannot be said that the assessee has not maintained regular accounts of its receipts and expenditure in terms of clause(iv) of section 80G(5) - at the time of granting approval u/s 80G(5)(iv) the authority concerned is only required to examine whether the trust and institution has fulfilled the conditions enumerated under clause (i) to (v) of section 80G(5) – thus, the DIT (E) has to restrict himself within the limitation of statutory mandate and cannot travel beyond it – here, nothing has been brought on record to show that the assessee has not fulfilled the conditions enumerated in clause (i) to (v) of section 80G(5). The material on record clearly proves that the alleged donation had been reflected in the accounts of the assessee – thus, the conclusion reached by the DIT (E) that the assessee trust cannot be held to be a fully charitable organisation is totally unsubstantiated and based on mere imagination than facts – thus, the DIT (E) was not correct in rejecting the assessee's application for renewal of approval u/s 80G(5) – the DIT (E) is directed to renew the approval granted earlier u/s 80G (5) of the Act to the assessee – Decided in favour of Assessee. Deletion made u/s 68 of the Act – Unexplained cash credit – Held that:- The CIT (A) held that when there are both cash credits and repayments, the Assessing Officer cannot consider the cash credits alone ignoring the repayments - when there are both receipts and payments only receipts cannot be considered totally ignoring the repayments -In such situation only the peak amount is to be considered – thus, there was no reason to interfere with the findings of the CIT (A) – Decided against Revenue.
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