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2014 (4) TMI 80 - HC - Income TaxEntitlement for exemption u/s 11(1)(a) of the Act – Held that:- Income derived from sale of residential and commercial units – Held that:- Clause (2) of the Memorandum of Association speaks about the objects for which the Society is formed and sub-clause (c) of clause 3 confers power on the respondent-assessee to improve, manage, cultivate, develop, exchange, grant on lease, mortgage, charge, sell, dispose off, grant rights and privileges in or otherwise dealing with all any part of the property, movable or immovable, patents or copy rights held by or belonging to the assessee or donated to it - the construction of the complex would fall within the scope of the objects enumerated in the memorandum of association – Decided against Revenue. Whether the Tribunal was justified in granting exemption u/s 11 of the Act, holding that an amount which had been accepted by the respondent-assessee as additional income, never reached the trust – Held that:- There is no material on record to show that this amount and the misappropriated amount is one and the same - That, perhaps, appears to be the reason why the CIT (A) observed that the assessee had claimed exemption u/s 11(2) of the Act to the extent of 25% of the assessee’s income - the respondent-assessee would be entitled for deduction to the extent of 25% on the amount added, to the income declared by them in their returns - the order of the Tribunal as well as the order of the CIT (A) to that extent are set-aside – Decided partly in favour of Revenue.
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