TMI Blog2018 (6) TMI 455X X X X Extracts X X X X X X X X Extracts X X X X ..... der 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. - ITA No. 50 of 2018 - - - Dated:- 16-5-2018 - MR. AJAY KUMAR MITTAL AND MR. TEJINDER SINGH DHINDSA, JJ. For The Appellant-Revenu : Mr. Denesh Goyal, Senior Standing Coun ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in nature? ( v) Whether on the facts and in the circumstances of the case, the order of the Appellate Tribunal is contrary to the evidence and material on the record of the case and therefore, perverse? ( vi) Whether on the facts and in the circumstances of the case, the order of the case, the order of the Appellate Tribunal is suffering from non-application of mind and is unreasonable and arbitrary? 2. A few facts relevant for the decision of the controversy involved as narrated in the appeal may be noticed. An application was received for grant of approval under Section 80G(5)(vi) of the Act on 11.05.2015 in the office of the Commissioner of Income Tax (E) [in short, CIT(E) ], Chandigarh, who, while passing an order u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e assessee sought exemption for the assessment years 2010-11 to 2014- 15 through an application to the CIT(E) which was rejected on the ground that the assessee was generating substantial surplus and was spending only a percentage for charitable purposes. It was recorded that the assessee therein had deviated from its charitable objects. After examining the relevant statutory provisions and the case law on the point, it was held by this Court that grant of exemption under Section 10(23C) and registration under Section 12AA of the Act in favour of an institution would be essential and persuasive factor for the grant of exemption under Section 80G of the Act though that by itself may not be sufficient to do so. There is no quarrel with the af ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gly, it was 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 under Section 12AA of the Act and also for passing appropriate orders regarding approval granted under Section 80G(5)(vi) of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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