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2014 (9) TMI 1167 - AT - Income TaxCharitable activities - eligible for exemption u/s 11(1) - unreasonable benefit having been given to persons referred to in S.13(3) - Held that:- There was no adverse inference on this issue and only a reference has been made to these salary payments. There is no allegation of unreasonable benefit having been given to persons referred to in S.13(3) by the Assessing Officer. Hence there is no violation which can lead to denial of exemption u/s 11. The assessee is definitely entitled to claim deduction u/s 11 of the Act as registration u/s 12AA is in force. Filing a defective form no.10 - Held that:- There was a typographical error and the Ld.CIT(Appeals) held that, when form no.10 is read with the accompanied resolution, the question of anti dating does not arise. We agree with the Ld.Commissioner of Income Tax (Appeals) that this error in Form No.10 is a typographical error and that substance over form has to be the basis of decision. Hence we uphold these findings of the Ld.CIT(A) and dismiss this ground. Accepting audit report in Form no.10B - assessee had, instead of filing Form No.10B, filed an audit report in form no.10BB, before the Assessing Officer - Held that:- Case of CIT vs. Trehan Enterprises [1999 (8) TMI 8 - JAMMU AND KASHMIR HIGH COURT] held that the requirement in question was merely directory and not mandatory. In any event all the details and audit report in some other form were already before the AO. We uphold this finding of the Ld.Commissioner of Income Tax (Appeals) that he has the power to admit audit report in form no.10B as in this case the Ld.AO has failed to bring to the notice of the assessee that there was a difficulty in the audit report filed in Form 10BB before him.- decided against revenue Computation of taxable income of the appellant - short fall in the application of 85% of the income - Held that:- CIT (A) is right in holding that the society is entitled to exemption u/s 11(1) in respect of the capital gains arising from the sale of Dhorka land. In fact this land was purchased for educational activities. This is evident from the various evidences filed by the assessee in the form of a paper book. Hence the submissions of the revenue that this land was not held for educational purposes is factually incorrect. It was due to certain circumstances that the land was sold and the sale proceeds invested in another piece of land, with the sole purpose of using it for educational purposes. On the computation of exemption u/s11 we uphold the contentions of the assesses that only capital gain on sale of land, which is income, has to be taken for the purpose of calculating the application of income as per the provisions of Sec.11(1)(A). There is no short fall in the application of 85% of the income as required by the provisions of Sec.11. In any case the assesses has utilized the entire sale consideration arising out of sale of land, for the purchase of lands in another area as noted by the ld.CIT (A) in his order. - Decided in favour of assessee.
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