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2018 (6) TMI 455 - HC - Income TaxApproval u/s 80G - whether registration under Section 12AA by itself is not automatic for granting approval under Section 80G? - approval was denied on the ground that the assessee was spending more than 5 per cent of the total receipts for religious purposes as pooja expenses and telecast expenses - tribunal recorded as assessee had demonstrated that spending more than 5% of total receipts for religious purposes as pooja expenses and telecast expenses was justified - Held that:- As recorded by the Tribunal that since assessee had been granted exemption under Section 12AA of the Act which was in existence and in case of any violation, the same was subject to variation/withdrawal by the CIT(E), there was no logic in denying approval under Section 80G 5(vi) of the Act. We do not find any reason to differ with the view taken by the Tribunal. Needless to say, in case, in subsequent years, the revenue is satisfied that the activities of the respondent-assessee are not qualified for charitable purposes, it shall be open for the department to initiate action for cancellation of registration - Decided in favour of assessee.
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