Short Over view: Since Commissioner (Exemptions) was satisfied with the objects and activities of the assessee that it was meant for charitable purposes, therefore, assessee was also entitled for approval under section 80G(5) with the grant of registration under section 12AA.

Assessee was a charitable trust and carried out various charitable activities. Commissioner (Exemptions) granted registration under section 12AA but declined to grant approval under section 80G.

It is held that since Commissioner (Exemptions) was satisfied with the objects and activities of the assessee that it was meant for charitable purposes, therefore, different view could not be taken while refusing the grant of approval under section 80G(5). Commissioner (Exemptions) did not doubt the objects of the assessee and did not mention anything if assessee has violated any of the conditions of section 80G(5). Thus, assessee was entitled for approval under section 80G(5) from the date of application.

Decision: In assessee’s favour.