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2018 (1) TMI 1331 - AT - Income TaxExemption u/s 11 - charitable object - merger of the judgment - Held that:- The assessee has been allowed exemption u/s 11 consistently in the past, either by the AO himself or by virtue of the orders of the Tribunal as affirmed by the Hon’ble High Court. This settled position ought not to have been ordinarily disturbed. The authorities below have chosen to deviate from the earlier consistent view by harping on the dismissal of SLP against the judgment of the Hon'ble J&K High Court in Jammu Development Authority. Two reasons for not accepting the Departmental stand. Firstly, the issue before the Hon’ble Jammu and Kashmir High Court was cancellation of registration by the CIT u/s 12AA(3) of the Act and not the denial of exemption, as is prevailing in the extant case. Admittedly, the assessee’s registration has not been canceled by the Commissioner. A mere dismissal of SLP without giving any reasons, cannot be equated with exposition of law by the Hon’ble Supreme Court so as to indicate the imprimatur on the reasoning and/or the ratio decidendi of the High Court in the judgment. There is no merger of the judgment of the Hon’ble High Court. The decision taken by the Hon'ble jurisdictional High Court in several cases including that of the assessee itself holds the field and, accordingly, the benefit of exemption u/s 11 of the Act cannot be denied. - Decided in favour of assessee.
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