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2013 (7) TMI 811 - HC - Income TaxBenefit u/s 11 an 12 - Loan given to society not registered u/s 12AA and it was less than 15% of the income over expenditure - A.O. held there was violation of Section 13(1)(d) - Tribunal denied to grant deduction u/s 11 and 12 - Held that:- Excess of income over expenditure in the relevant year was less than 15% of the gross receipts. The loan was not given in the period relevant to assessment year - Amount was given by way of loan to a society, which was later on registered under Section 12A with the same objects and purpose as that of the assessee - Loan is neither investment nor deposit - The case of deposit is something more than a mere loan of money. It depends on the facts of the each case whether the transaction is clothed with the character of deposit of money - Where both the societies have similar objects and are registered under Section 12AA and have approvals under Section 80G, interest free loan cannot be treated as deposit or investment so as to attract Section 11 (5) of the Act - Following decision of Director of Income-Tax (Exemption) v. Acme Educational Society[2010 (7) TMI 159 - DELHI HIGH COURT] and Mansa Ram & Sons v. Janki Dass Om Prakash & Ors.[1984 (4) TMI 251 - ALLAHABAD HIGH COURT] - Decided in favour of assessee.
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