TMI Blog2014 (4) TMI 978X X X X Extracts X X X X X X X X Extracts X X X X ..... f the Income-tax Act, viz., income from other sources or income from capital gains - thus, the AO is directed to recomputed the income – Decided in favour of Assessee. Disallowance of deduction u/s 80G of the Act – Held that:- The findings of the CIT(A) cannot be upheld that if the assessee is not eligible for exemption under Section 11 & 12, he is not eligible for deduction under Section 80G - The assessees who are not eligible for exemption under Section 11 & 12 are very well eligible for deduction under Section 80G – thus, the order of the CIT(A) set aside and the matter is remitted back to the AO for re-consideration – Decided in favour of Assessee. Withdrawal of exemption/registration u/s 12A/12AA of the Act – Held that:- If the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ounting to Rs.1,41,75,000/- paid on loan taken by the appellant on the alleged ground that the appellant had made certain investments and advanced loans in violation of Sec 11 (5) r.w.s. 13(1)(d) of the Income Tax Act, 1961 ( the Act ). 2. The appellant prays that the deduction of aforesaid interest expenses be allowed. Ground II : Not granting deduction u/s 80G of the Act. 1. On the facts and circumstances of the case and in law, the learned CIT(A) erred in confirming the action of the A.O. in not granting deduction of Rs.28,43,000/- u/s 80G of the Act on the alleged ground that the appellant had made certain investments and advanced loans in violation of Section 11(5) r.w.s. 13(1)(d) of the Act. 2. The appellant prays that the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of deduction under Section 80G is not dependent upon the exemption under Section 11 12. In fact, the position would be otherwise. If an assessee is entitled to exemption under Section 11 12, the donation to another institution would be considered as application of funds for charitable purposes. The exemption under Section 80G is to be allowed in the case of persons who are not entitled to exemption under Section 11 12. 4. Learned DR, on the other hand, relied upon the orders of authorities below and he stated that the assessee has violated the provisions of Section 13(1)(d) read with Section 11(5) of the Act. Therefore, the Assessing Officer has rightly held that the assessee is not entitled to exemption under Section 11 12. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... find that in the computation of income, the assessee listed the details of total donations amounting to Rs. 56,86,000/-. However, no deduction was claimed by the assessee because the gross total income as per assessee was loss. However, if while recomputing the income the Assessing Officer finds that the gross total income of the assessee is in positive figure, then he will consider the assessee s claim for deduction under Section 80G in accordance with law. We also do not agree with the finding of the learned CIT(A) that if the assessee is not eligible for exemption under Section 11 12, he is not eligible for deduction under Section 80G. The assessees who are not eligible for exemption under Section 11 12 are very well eligible for ded ..... X X X X Extracts X X X X X X X X Extracts X X X X
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