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2016 (3) TMI 1349 - ITAT MUMBAIExemption u/s 11(1) denied - capital gain arising from sale of building - sum was utilized otherwise then for acquiring capital assets in contravention of section 11(1A), thus, the assessee was not entitle to exemption of the said amount - application of income for charitable purposes - HELD THAT:- There is no dispute to the fact that the impugned amount was duly disclosed in the income and expenditure account and the expenditure is excess over the income. The total income credited to the account was ₹ 3,29,91,999/- and application towards the object of the trust was ₹ 4,72,02,440/-. Whereas, the AO restricted the deduction of income apply towards the object of the trust was to the extent of ₹ 1,60,26,499/-. Even if, we accept the contention of the ld. DR to be correct that the impugned amount is income of the assessee trust fact remains that it was applied towards the object of the trust. Our view find supports from the ratio laid down , though on invocation of revisional jurisdiction u/s 263 of the Act, in the case of Al Ameen Educational Society vs DIT [2012 (11) TMI 346 - ITAT BANGALORE] wherein, the entire consideration was used to acquired new asset, therefore, there was no difficulty as nothing will be taxable u/s 11(1A)(a)(i) of the Act. The decision and the ratio laid down in CIT vs East India Charitable Trust [1992 (1) TMI 21 - CALCUTTA HIGH COURT] further supports the case of the assessee, if the capital gain is applied for charitable purposes of the assessee, not by acquiring a new asset, but for other charitable purposes, then there is no reason why its not be considered as application of income for charitable purposes. - Decided in favour of assessee
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