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2017 (11) TMI 1663 - AT - Income TaxBenefit of section 11 denied - assessee does not have registration u/s 12AA for the PY 2011-12 relevant to AY 2012-13 - Held that:- As decided in assessee's own case[2016 (1) TMI 1024 - ITAT HYDERABAD] there being no dispute to the fact that dominant object of assessee is charitable in nature, proviso to section 2(15) cannot be applied to deny exemption to assessee u/s 11 of the Act. AO without examining the issue in proper perspective has abruptly concluded that assessee is not entitled to exemption u/s 11 of the Act only because proviso to section 2(15) was introduced w.e.f. 01/04/09. Proviso to section 2(15) of the Act will not apply automatically to every trust or institution irrespective of the fact, whether the dominant object of the trust or institution is charitable purpose or earning profit. When in the present case assessee is registered as charitable institution and there is no change in the aims and objects of assessee in the impugned AY and the activities of assessee over the years remains the same, the proviso to section 2(15) cannot be applied to assessee to deny exemption u/s 11 of the Act. - Decided against revenue Disallowance u/s 40(a)(ia) - Held that:- we confirm the finding of the CIT(A) that as exemption u/s 11 is allowed the disallowance would consequently get deleted and accordingly, this ground of appeal is also dismissed.
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