Assessee society was granted registration under section 10(23C)(vi) by Chief Commissioner on 29-2-2008.During assessment proceedings for relevant year, Commissioner (E) withdraw registration on ground that assessee society had violated terms and conditions of approval granted under section 10(23C)(vi). Violations included sub-leasing leasehold nazul land to a builder without showing rental income from it, contrary to conditions of use for educational purposes. On appeal the Tribunal held that   society had right to sub-lease property as per lease deed with State Government-Sub-leasing was in conformity with society’s object clause of controlling and administering movable property and raising funds for maintaining and managing educational institution. Regarding alleged non-accounting of rental income from sub-lessee, it was found that amount was duly reflected in balance sheet, and sub-lease had been terminated due to sub-lessee’s failure to comply with terms-Further, failure to account for interest income was an inadvertent omission and could not be a basis for withdrawal of registration. Furthermore, it could not be said that assessee society had obtained approval under section 10(23C)(vi) on basis of any fraud or misrepresentation of facts before him.  Accordingly the order of CIT(E)  withdrawal of exemption is set aside.  (AY. 2019-20)