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2017 (5) TMI 1427 - ALLAHABAD HIGH COURTRenewal of the exemption under Section 80G(5) denied - as during the search and seizure operations an unaccounted cash was recovered and as such the assessee respondent was not properly maintaining its books of accounts - Held that:- Tribunal is not justified that as the respondent assessee meets the requirement of the above conditions contained in sub-section 10(23C), it is also entitle to the benefit under Section 80G of the Act. There is no dispute that search and seizure operation was carried out in the premises of the respondent assessee and that a sum of ₹ 11.25 lacs was recovered in cash. This amount was not shown in the account books maintained by the respondent assesssee. It has come on record that the respondent assessee admitted before the Income Tax Settlement Commission that the cash found during the search and seizure operations amounting to ₹ 11.25 lacs belonged to it and that the receipts relating to this cash were not recorded in the account books. The above very fact clearly establishes beyond any doubt that the respondent assessee was not maintaining regular accounts of its receipts and expenditure. It is precisely on this ground that the application for renewal of approval/registration has been rejected. Assessee failed to fulfill one of the essential conditions for grant of renewal of approval/registration under Section 80G of the Act, we are of the opinion that the tribunal committed manifest error of law in setting aside the order of the Commissioner and in directing for grant of registration under Section 80G(5) to the respondent assessee. The fulfilment of conditions under Section 10(23C) of the Act is only one of the conditions prescribed under Section 80G of the Act but besides the said condition other conditions are also necessary to be satisfied for claiming benefit of Section 80 G of the Act. The respondent assessee failed to satisfy one of those conditions as mentioned earlier. Question of law answered in favour of the revenue and against the assessee and it is held that benefit under Section 80 G shall only be available on the strict compliance of the conditions laid down therein and not merely by satisfying the conditions of Section 10 (23 C) of the Act.
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