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2013 (8) TMI 45 - HC - Income TaxExemption u/s 11 - Benefit u/s 13 - Tribunal allowed benefit - Held that:- there is no basis for assuming it for the reasons that the amounts passed on to other organizations were in nature of donations/grants to organizations carrying on charitable activities of which the members of the Governing Council of the Sansthan would not be beneficiaries. The establishment expenditure incurred at the Head Office was only a fraction of the total of such expenditure, a major portion of which had been incurred on the units carrying on charitable activities. The conclusion of the AO that the bulk of the expenditure was on non-charitable activities is, therefore, by no means sustainable - Following decision of CIT vs. Kamla Town Trust [2005 (8) TMI 90 - ALLAHABAD High Court] - Decided against Revenue. It has not been mentioned that the funds were misappropriated and were not utilized for the purpose according to the objects of the society, so the registration cannot be cancelled - registration was not cancelled, but the benefit of exemption was not given by the AO, which is not allowable - Following decision of American Hotel and Lodging Association vs. CBDT [2008 (5) TMI 17 - SUPREME COURT OF INDIA] - Decided against Revenue.
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