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2018 (7) TMI 1908 - AT - Income TaxDenial of exemption u/s 11 - violation of provisions of section 13 - assessee had given interest-free loan to one M/s Baba Amarnath Educational Society and or other societies/trusts - HELD THAT:- Following the decision in the D.C.I.T., CHANDIGARH VERSUS AMRITSAR INTERNATIONAL [2017 (12) TMI 1682 - ITAT CHANDIGARH] we hold that the CIT(A) has rightly held that the provisions of section 13(1)(c) are not attracted since the AO has failed to point out how persons specified as per section 13(3). Nothing has been brought on record by the Revenue to prove that the main object of the assessee actually was giving loans and not providing education. We also agree with the CIT(A) that the loan given to the respective Educational Society do not qualify as a deposit/investment for the purposes of section 11(5) of the Act, and therefore the assessee cannot be said to have violated the provisions of section 11(5) so as to be denied exemption u/s 11, as per section 13(1)(d) of the Act. Moreover since the impugned loans/advances were made in earlier years, the provisions of section 13(1)(c)/(d) could in any case not have been invoked in the impugned year. We therefore uphold the order of the Ld. CIT(appeals) and dismiss the appeal filed by the Revenue.
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