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2014 (8) TMI 681 - HC - Income TaxExemption to be granted as provided u/s 13(1)(d) or total denial u/s 11 – Investment made in MIOT Hospitals Ltd. – Contravention of section 11(5)/13(1)(d) or not – Held that:- Following the decision in DIT (Exemptions) v. Sheth Mafatlal Gagalbhai Foundation Trust [2000 (10) TMI 26 - BOMBAY High Court] - violation of section 11(5) r.w.s. 13(1)(d) by the assessee would result in the maximum marginal rate of tax only on the dividend income on shares, which was not the recognised mode of investment and that the assessee would not be vested with marginal rate of tax on the entire income - the income other than dividend income has to be taxed only to the extent to which the violation was found by the AO - there is a vital difference between eligibility for exemption and withdrawal of exemption/forfeiture of exemption for contravention of the provisions of law – Decided against Revenue.
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