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2013 (11) TMI 67 - AT - Income TaxExemption available u/s 11 of the Income Tax Act – Held that:- business of Bar and Restaurant is property held under trust for a charitable object within the meaning of section 11(4), not affected in any way by section 11(4A) of the Act. Thus, the assessee trust is entitled to exemption u/s 11 for all its income except for income providing facilities of playing cards – In the present case, assessee is entitled to exemption u/s 11 for its income except income providing facilities of playing cards and accordingly reject grounds of appeal taken by the department. Receipts for social functions, pavilion, board room and open terrace would not be eligible for exemption under section 11 of the Income-tax Act – Held that:- The activities of the assessee Club on Social Functions, Pavilion, Board Room, Terrace and Card Room were for personal purposes and are clearly not for the object of the Club. The only exception to this decision of ours is the functions organized on Independence Day, Republic Day, Diwali celebrations and likewise only. Therefore, the activities not covered by the decision of the Co-ordinate Bench would not qualify for exemption u/s 11 of the Act. In view of this, the decision of the ld. CIT(A), in respect of activities of the assessee not covered by the said decision of the Co-ordinate bench cannot be sustained. Therefore, the AO is directed to allow the expenses as per our directions on such activities of the assessee which are covered by the decision of the Hon'ble Co-ordinate Bench – Decided in favor of Assessee.
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