Granting Approval u/s 80G(5)(vi) of Income Tax Act merely relying on instrument creating the trust is not valid: Punjab & Haryana HC

The Punjab and Haryana High Court ruled that merely relying on the instrument that creates a trust does not make the granting of approval under Section 11 of the Income Tax Act valid. The judgment underscores that the genuine nature of the trust’s operation must be scrutinized, including its objectives and activities, to ensure it is eligible for tax exemptions. This ruling is significant as it emphasizes a more thorough examination for granting tax exemptions to trusts, highlighting that mere documentation is insufficient.