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2021 (2) TMI 1089 - AT - Income TaxRejection of grant of approval under section 80G(5) - premises from which the appellant trust is operated are not owned by the appellant trust/shared along with other trusts and accounts of the appellant trust are not reliable since accounts are not audited. Consequently, he had come to the conclusion that the genuineness of the activities of the trust was not established by the appellant - HELD THAT:- Provisions of section 80G(5)(vi) of the Act nowhere stipulate that in order to be eligible for grant of approval u/s 80G(5)(vi) of the Act, the premises from which the appellant trust is operated, should be owned by the appellant trust. The ld. Commissioner of Income Tax (Exemption) cannot introduce any new condition nor stipulate a new condition which is not prescribed under the provisions of the Statute. It is not the case of the ld. CIT (Exemption) that the appellant trust had failed to fulfil any of the conditions prescribed u/s 80G(5)(vi) of the Act r.w. Rule 11AA of the Rules. The findings of ld. Commissioner of Income Tax (Exemption) that since the accounts of the trust are not audited the activities of trust are not genuine, is not based on any material nor it is possible to come to such conclusion by the CIT (Exemption) in view of the undisputed fact that the appellant trust still continues to enjoy the registration u/s 12AA. It is settled proposition of law that during the course of enquiry u/s 80G(5)(vi) of the Act, the scope of enquiry cannot extend to the actual assessment of income. Reliance in this regard can place on the decision of the Hon’ble Gujarat High Court in the case of N.N. Desai Charitable Trust vs. CIT [1999 (5) TMI 11 - GUJARAT HIGH COURT]. In the circumstances, we are of the considered opinion that the ld. Commissioner of Income Tax (Exemption), Pune is not justified in denying the grant of approval u/s 80G(5)(vi) - Decided in favour of assessee.
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