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2013 (6) TMI 49 - HC - Income TaxExemption u/s. 11 - ITAT allowed the claim though assessee failed to get the permission of the Charity Commissioner to raise loans for the trust - Held that:- There is no bar in the Trust Deed to take unsecured loans. Moreover, it is not in dispuse that the unsecured loans taken in earlier years were duly reflected in the books maintained by the assessee and though prior approval was not obtained, the assessee had, in fact, subsequently applied for approval from the Charity Commissioner and the Charity Commissioner has neither granted approval nor initiated any proceedings under the Trust Act for the alleged violation of obtaining unsecured loan without prior permission - no reason to entertain question proposed by the revenue. Depreciation on the assets & repayment of loan disallowed as the cost of which has already been allowed as a deduction on account of application of income - Held that:- Issue arising herein are covered by the decision of CIT v. Institute of Banking Personnel Selection (IBPS) [2003 (7) TMI 52 - BOMBAY High Court] - in favour of the assessee.
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