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2016 (10) TMI 714 - ITAT BANGALOREEligibility for exemption u/s. 11 - charitable activity - Held that:- In the instant case, the AO has examined the nature of activities in the light of statement of accounts, balance sheet and the activities undertaken by the assessee. The CIT(Appeals) has also examined the activities of the assessee and has noted that the main activity of the assessee is letting out of kalyana mantapa on hire charges and by doing so, assessee has earned some of ₹ 37,45,915. Besides, assessee has also collected generator hire charges and interest on FDRs, etc. Similarly, from the expenditure side, it is also noted that assessee has not incurred any major expenditure on account of education and medical relief to the poor. During the impugned assessment year, income over expenditure was of ₹ 30,72,028.44. From a careful perusal of the Income & Expenditure account for AY 2009-10, it is noticed that the main activities of the assessee was only letting out of kalyana mantapa and whatever income over expenditure was earned during the year, it was put in FDRs to earn interest thereon. No charitable activity as defined under the Act was undertaken by the assessee. In the light of these facts, it is of the considered view that the assessee has not undertaken charitable activity during the year, therefore, it is not eligible for exemption u/s. 11 of the Act. Accordingly find no infirmity in the order of the CIT(Appeals) and confirm his order.
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