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2014 (11) TMI 411 - HC - Income TaxRejection of renewal of recognition u/s 10(23C)(vi) – Held that:- It has been held in Sri Ranganatha Enterprises v. CIT [1998 (1) TMI 52 - KARNATAKA High Court] that in respect of any exemption claimed under any of the provisions in Chapter-III, the burden of proof that the income falls under the Sections in the said chapter is on the assessee - the prescribed competent authority, while considering the application for approval and examining the eligibility criteria, ought to take into consideration the real purpose of the Trust - assessee submitted its application for renewal in the proper format, namely, Form 56D, and stated that the main objects of the Trust are relief to poor, education, medical relief and advancement of any other objects of public utility. The Trust is running Polytechnic and Industrial Training Institute - under Chapter-III, more particularly, Sections 10 to 13A of the Act, the Act brings certain categories of exemption and incomes falling within those categories are completely exempt from the purview of the Act, as they are not at all to be included in the total income of the assessee - such type of exemption/s has/have to be distinguished from certain types of income, which are included in the total income of the assessee, but in respect of which statute provides relief by way of deduction in computing the total income, by granting rebate of tax and by granting certain other reliefs from the tax-payers - the opportunity afforded to the petitioner was inadequate, inasmuch as the order appears to be solely on the basis of the report of the DIT (E), without any opportunity to the assessee to place materials to rebut the findings contained in the report and that the tests required to be applied while examining the issue, having not been rightly applied - the order is set-aside and the matter is remanded back for fresh consideration – Decided in favour of assessee.
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