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2018 (6) TMI 1795 - AT - Income TaxDenial of exemption u/s 11 - donation made to another trust - whether donations for charitable purposes made from sale proceeds of the capital asset is also application of income towards achievement of the objects of the Trust and render it eligible for exemption under Section 11 ? - HELD THAT:- We find that the issue before us, is squarely covered in favour of the assessee by the decision of a co-ordinate bench of this Tribunal in the case of Al Ameen Educational Society Vs. DIT (Exemptions) [2012 (11) TMI 346 - ITAT BANGALORE] wherein held that if the capital gains / sale proceeds of the capital asset is applied for charitable purposes in keeping with the objects of the assessee trust, not by acquiring a new asset but for other charitable purposes, then there is no reason why it should not be considered as application of income for charitable purpose, thereby enabling the assessee to be eligible for claiming exemption under Section 11 of the Act. Following the aforesaid decision of Al Ameen Educational Society Vs. DIT (Exemptions) (supra), we uphold the decision of the learned CIT (Appeals), rendered at para 12 of the impugned order, that donations made form sale proceeds of the capital asset for charitable purpose in furtherance of the objects of the assessee trust, renders the assessee eligible for exemption under Section 11 of the Act. Consequently, the grounds raised by Revenue are dismissed.
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