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2017 (8) TMI 923 - AT - Income TaxExemption u/s 11 eligibility - proof of activities of the assessee trust are not charitable within section 2(15) - Held that:- Having taken a view in assessment years 2007-08, 2013-14 & 2014- 15 treating the assessee as exempt u/s 11 of the Act, the AO could not have taken a view to the contrary in other years there being no change in facts or the legal position. - Decided in favour of assessee. Disallow the expenditure in various forms on estimate basis - addition limited to 10% by the ld. CIT(A) - main thrust of the argument of the AO is that since OBPL had been engaged to set up the hospital and run it, there was no requirement to incur these items of expenditure - Held that:- According to the agreement between the assessee and OBPL already referred to earlier the latter has been contracted to set up the hospital and run it for which it is entitled to 70% of the surplus remaining after meeting the entire expenditure. The liability of OBPL does not extend to meeting the aforesaid items of expenditure, which are necessary for running the hospital. In view of the aforesaid submissions of the ld. counsel for the assessee, we find no infirmity in the order of the ld. CIT(A). We hold that the disallowance made by the AO is not called for either on facts or in law. Accordingly, we direct the deletion of addition made by the Assessing Officer which is on estimate basis and on surmises and conjectures - Decided in favour of assessee.
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