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2015 (9) TMI 592 - AT - Income TaxEligibility for exemption U/s. 11 - whether both the AO as well as CIT(A) erred in law as well as on facts in holding that the appellant trust was carrying the business of renting vastu etc. for a fee and, therefore, it attracted the first provisio to Section 2(15)? - Held that:- The assessee a Public Charitable trust, was created vide deed of trust dated 01.06.2000, that it was granted registration u/s. l2A of the Act, w.e.f. 27.07.2001 that it was granted approval u/s. 80G(5)of the Act, in 2009, that during the year under consideration the AO held that the activities carried out by it were not eligible for claiming the exemption, that in earlier and subsequent years claim made by the assessee about exemption was accepted by the AO. But, it is not known as to whether any of the orders was passed u/s. l43(3) of the Act. During the appellate proceedings, the FAA has not fully mentioned the submissions made by the assessee and has decided the issue relying upon a judgment that has been overruled long back i.e. in Addl. CIT v. Surat Art Silk Cloth Mfrs. Association [1979 (11) TMI 1 - SUPREME Court]. It is surprising that the FAA had not considered the later judgment which is considered one of the landmark judgments dealing with charitable activities since 1980. He totally ignored the judgment of Hon'ble Delhi High Court delivered in the case of Institute of Chartered Accountants of India (2013 (7) TMI 205 - DELHI HIGH COURT) that was relied upon by the assessee. His order is cryptic and does not contain the facts narrated by the AO . Thus the order of justice matter should be restored back to the file of the FAA for re-adjudication, who will decide the issue afresh after affording the assessee a reasonable opportunity of hearing - Decided in favour of assessee by way of remand.
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