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2016 (2) TMI 226 - AT - Income TaxEntitlement to exemption u/s 11 - whether the payment is towards religious purposes and not charitable purposes? - Held that:- It is to reiterate that it has not been disputed that the payment was for the purpose of the education of the Fathers, who serve in various schools run by the assessee, as teachers, supervisors and principals, etc. Before the AO, it was because of the wrong admission of the assessee that the addition was made. The two rectification applications filed by the assessee before the AO met with a negative fate qua the assessee, i.e., they were rejected. However, the fact remains that it has not been shown that the payment in question was not towards the education of the Fathers serving in the schools of the assessee. As such, the narration in the table contained at pages 14-15 of the impugned order does not make the payment to be for a religious purpose and not for a charitable one. This narration, by itself, is not determinative of the nature of the expense, particularly when education of the Fathers has not been shown not to be towards education, which is a charitable purpose of the assessee. Therefore, the grievance of the department that the ld. CIT(A), holding powers co-terminus with those of the AO, ought to have held the expenditure not to have been incurred for charitable purposes, is found to be devoid of force, particularly in the absence of any material on record to prove the expenditure to be towards any religious purpose. - Decided in favour of assessee
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