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2019 (4) TMI 2056 - HC - Income TaxExemption u/s 11 - rejecting the method of computing the income followed by the assessee - HELD THAT:- While going through Section 11 (4A) of the Act, which clearly barred that sub-Section (1) or sub-Section(2) or sub-Section (3) or sub-Section 3(A) shall not apply in relation to any income of a trust or an institution, being profits and gains of business, unless the business is incidental to the attainment of the objectives of the trust or, as the case may be, institution, and separate books of account are maintained by such trust or institution in respect of such business. In our considered opinion, although the separate books of account is attempted to be maintained for the business of the trust, but there is no material to show that it was incidental to the trust objective. In that view of the matter, the provisions of Section 11 (4A) of the Act will not be applicable to the case of the assessee. Hybrid system of accounting adopted by the assessee - Tribunal has rightly come to the conclusion in the last paragraph of the impugned order i.e. paragraph-6, which reads as under as far as ground no.4 is concerned, this ground is relevant only if the assessee’s changed method of accounting from this year is found to be acceptable. Since the changed method of accounting has not been accepted by the lower authorities and the assessee has not challenged this action of the lower authorities on this issue before us, we find no merit in this ground taken by the assessee before us and the same is also dismissed - in that view of the matter, we are of the considered view that question no.4 is not raised in its proper form.
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