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2016 (1) TMI 709 - AT - Income TaxDenial of exemption under section 11 - investment in chits on the ground that it is in violation of section 11(5) r.w.s. 13(1)(d) - CIT(A) allowed the claim - Held that:- CIT(A) has observed that the assessee is liable for Rs..1,30,724/- to the Social Forum Kuris and there is no investment on the asset side of the balance sheet as on 31.03.2010. Further in the receipts and payments account as on 31.03.2010 also the payments were made to social form chit account which is nothing but repayments. Therefore, the ld. CIT(A) has held that the assessee has not made any investment in violation of section 11(5) r.w.s. section 13(1)(d) of the Act. The ld. DR could not controvert the above findings of the ld. CIT(A). Accordingly, we find no infirmity in the order passed by the ld. CIT(A) and dismiss the ground raised by the Revenue. - Decided in favour of assessee Loan given to Pavanatma Provincial House, Kerala in violation of section 13(1)(d) - CIT(A) rejected revenue conclusion of violation u/s 13(1)(d) - Held that:- The interest free loan given by the assessee society to other society having similar objects and registered under section 12A of the Act does not violate section 13(1)(d) read with section 11(5) of the Act as the said loan was neither an investment nor a deposit. Accordingly, the ratio lay down by the Hon’ble Delhi High Court in the case of DIT(E) v. ACME Educational Society (2010 (7) TMI 159 - DELHI HIGH COURT ) squarely applies to the facts of the present case since giver and receiver are having similar objects and both are registered trust. Under these facts and circumstances, we confirm the order passed by the ld. CIT(A) on this issue - Decided in favour of assessee
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