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2009 (7) TMI 654 - PUNJAB & HARYANA HIGH COURTCharitable purpose - Exemption- The assessee is a public sector undertaking and received grants from the Central and State Governments for its various projects. On the grants of Governments received, it earned interest income. It claimed deduction on the said income under section 11(1)(a) of the Act, which was not allowed by the Assessing Officer. However, the Commissioner of Income-tax (Appeals) upheld the claim of the assessee. The Tribunal remanded the matter to examine whether there was co-relation between schemes and the amounts spent. Held that- dismissing the appeal, that the quantification for attracting section 11(1)(a) was that income should be derived from property held in trust for Charitable purpose. The Commissioner (Appeals) as well as the Tribunal held that interest income from grants was fully covered under section 11(1)(a). The interest income from property of the trust fell under section 11 of the Act.
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