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2012 (12) TMI 1062 - AT - Income TaxDenial of exemption under s. 11 on the ground that same should have been claimed exempt under s. 10(23C) - Held that:- When the law permits the assessee to claim exemption under s. 10(23C) or s. 11, the choice should be left to the assessee and the Department cannot force the assessee to adopt only a particular provision. Since in the instant case the assessee has been granted registration under s. 12A which has not been cancelled and is still in force for the impugned assessment year and since the assessee was granted the benefit of exemption under s. 11 in the past years under scrutiny assessments and no objection was raised by the Revenue for such exemption under s. 11, therefore following rule of consistency the learned CIT(A) should have allowed exemption under s. 11 and the learned CIT(A) in our opinion is not justified in holding that the assessee should have claimed exemption under s. 10(23C). The various decisions relied on by the learned CIT(A), in our opinion, are distinguishable and not applicable to the facts of the present case. In this view of the matter, we set aside the order of the CIT(A) on this issue and hold that the assessee can claim exemption under s. 11 if it fulfils the other conditions prescribed under the said section. The grounds raised by the assessee are accordingly allowed. Considering the fact that the Revenue had no objection in the past for holding the shares of the bank during the tenure of loan utilised by the assessee trust and considering the fact that the assessee trust is still enjoying overdraft facilities from the bank we are of the considered opinion that there is no violation of provisions of s. 11(5) r/w s. 13(l)(d) on account of holding the shares of the bank. In this view of the matter, we set aside the order of the CIT(A) and the grounds raised by the assessee on this issue are allowed. Donations received through issue of coupons as revenue receipts - Held that:- Since in the preceding paras we have held that there is no violation of provisions of s. 11(5) r/w s. 13(l)(d) and since the donations are treated as revenue receipts therefore it does not make any difference. We, therefore, hold that exemption under s. 11 is allowable on such coupon donations. The grounds by the assessee are decided accordingly.
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