- (1.) Heard Shri Shubham, learned counsel for the appellant and Shri Suyash Agrawal, learned counsel for the respondent.
(2.) This appeal under Section 260-A of the Income Tax, 1961(hereinafter referred to as the 'Act') has been filed by the department against the order of the Income Tax Appellate Tribunal dated 27.12.2010 in a matter arising out of the grant of relief to the assessee under Section 80 G of the Income Tax Act. The questions of law sought to be answered as as hereunder: "(1) Whether the ITAT has erred in law and on facts in directing to grant 80G and did not appreciate the fact that the assessee could not prove the genuiness of charitable activity? (II) Whether the ITAT has erred in law and on facts by not appreciating the fact vis-a-vis provision of section 12AA(1)(a) which clearly speaks about the satisfaction of the CIT in respect of charitable activity being carried out? (iii) Whether the ITAT was justified in granting the benefit fo 80G to the assessee even when there is a clear cut finding that the trust does not exists at the given address?"
(3.) An admitted fact is that the assessee was registered under Section 12-A of the Act on 05.03.1992 and since then its registration has never been cancelled. However, the CIT rejected the application of the assessee for approval under Section 80G of the Act by recording observations that there was no proof of the activities being carried on by the assessee and even though an opportunity was given by the CIT to the assessee to substantiate it, they did not come forward to show as to how its activities are genuine.;