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2015 (7) TMI 1024 - AT - Income TaxGrant of registration u/s. 12AA rejected - consequent rejection of approval u/s. 80G(5) - Held that:- Trust/institution having charitable and religious objects will also be eligible for exemption u/s. 11, unless hit by restrictions imposed u/s. 13(1)(a) or 13(1)(b) of the Act. The DIT(E) has not brought any material on record to show that provisions of Section 13(1)(a) or 13(1)(b) applies to assessee, denial of registration u/s. 12AA for alleged violation of Section 11 in our view is not justified. Moreover, applicability of Section 13 of the Act can be looked into by the AO at the time of assessment proceedings and not by the DIT(E) while exercising power u/s. 12AA of the Act. Moreover, at present assessee also excluded the three object clauses objected to by the DIT(E). Therefore, the objections raised by DIT(E) does not survive. In view of the above, we are inclined to set aside the impugned order of DIT(E) and direct him to grant registration to the appellant-trust u/s. 12AA of the Act from the period it applied for registration. See Shiva Shakthi Shiridi Sai Anugraha Mahapeetam Versus Dy. Director of Income-tax (Exemptions), Hyderabad [2014 (12) TMI 250 - ITAT HYDERABAD] Since the DIT(E) refused approval u/s. 80G only on the reason that registration u/s. 12AA was denied to assessee, we direct the DIT(E) to examine the application and grant registration u/s. 80G, if other conditions are satisfied. - Decided in favour of assessee for statistical purposes.
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