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2011 (3) TMI 121 - AT - Income TaxRegistration u/s 12AA and approval under sec. 80G - Explanation 3 to sub-sec.(5C) of sec. 80G of the Act, it clearly says the charitable purpose does not include any purpose the whole or substantially the whole of which is of a religious nature - A reading of the object clause of the assessee trust , would not in any way show that its purpose was in whole or substantially in whole, of religious nature - Assessee had by itself put a limitation for spending on religious activity, if at all it was spent for that purpose in future - Sub-rule (4) of Rule 11B mentions that the approval given under sec.80G would be only for specific years mentioned and the approving authority had the discretion to grant or not to grant a renewal periodically based on applications were put up for this by the assessee - Sub-sec.(3) of sec.12AA of the Act, it gives power to the Commissioner to withdraw registration given under sec.12AA of the Act if the activities of the institution or trust were not as per its’ objects. Held that: the assessee was eligible for registration under sec.12AA as well as approval under sec. 80G of the Act, and these were unjustly denied without taking the totality of the circumstances and objects of the assessee - Quash the order of the DIT(E) and direct him to grant registration under sec. 12AA and approval sought by the assessee under sec. 80G of the Act - Hence, assessee’s appeals are allowed.
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