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2014 (4) TMI 978 - AT - Income TaxDisallowance of deduction of interest expenses Held that:- The Assessing Officer has recorded the finding that the assessee is not entitled to exemption under Section 11 & 12 - The assessee has not disputed such finding in appeal either before the CIT(A) or before this authority - assessees income is to be computed under the general provisions of the Income-tax Act which are applicable in the case of persons who are not entitled to exemption under Section 11 & 12 there is merit in the contention of the assesse that the income of the assessee needs to be computed under the various provisions of the Income-tax Act, viz., income from other sources or income from capital gains - thus, the AO is directed to recomputed the income Decided in favour of Assessee. Disallowance of deduction u/s 80G of the Act Held that:- The findings of the CIT(A) cannot be upheld that if the assessee is not eligible for exemption under Section 11 & 12, he is not eligible for deduction under Section 80G - The assessees who are not eligible for exemption under Section 11 & 12 are very well eligible for deduction under Section 80G thus, the order of the CIT(A) set aside and the matter is remitted back to the AO for re-consideration Decided in favour of Assessee. Withdrawal of exemption/registration u/s 12A/12AA of the Act Held that:- If there is some correspondence between the AO and other departmental authorities, though the AO has mentioned the same in the assessment order, it will not become an appealable issue - if the DIT(Exemptions) would like to take any action on the proposal of the Assessing Officer, he will give opportunity of being heard to the assessee in accordance with law - even if the DIT(Exemptions) passed any order withdrawing the exemption granted to the assessee u/s 12A/12AA, the assessee would be at liberty to take appropriate action against such order in accordance with law the ground is premature and needs no adjudication Decided against Assessee.
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