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2014 (5) TMI 434 - AT - Income TaxRejection of grant of approval u/s 80G of the Act - Construction of school and hospital – Charitable Activity or not – Held that:- Registration u/s 12A/12AA is a prerequisite for the grant of approval u/s 80-G, which could be withdrawn u/s 12AA (3) - according registration or not withdrawing the same, as the case may be, is itself inconsistent with the non-grant of approval u/s 80-G in-as-much as a satisfaction as to the genuineness or otherwise is also a criteria for according or, as the case may be, withdrawing registration - any authority granting an approval has an inherent power to withdraw it if the condition/s of the approval are no longer met or stand violated at any stage. Section 292C specifically provides for power of such withdrawal - all that the Legislature has done is to bring the law as to the grant of registration under the Act and approval u/s. 80-G at par, so that, once granted, the same would continue to obtain unless the condition/s of its grant are found to be violated or breached – Relying upon Sinhagad Technical Education Society vs. CIT [2012 (3) TMI 262 - BOMBAY HIGH COURT] - only because a power operates with respect to past transactions does not imply that the relevant provision is retrospective - post 01/10/2009, subject to the satisfaction of s. 292C, section 80-G approval could also be withdrawn for a period prior to 01/10/2009 - where the activities leading to the withdrawal, stand undertaken prior the date - the Revenue is not justified in not granting approval u/s 80-G(5) to the assessee – the competent authority directed to grant approval u/s 80-G(5) to the assessee with effect from 04/11/2009 – Decided in favour of Assessee.
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