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2018 (10) TMI 1221 - AT - Income TaxExemption u/s 11 - Charitable activity - earlier, the approval u/s 10(23C)(vi) was rejected - allegation that investment in purchase of farm houses and land not used for the purpose of education - Held that:- It may be noted here that the issue involved in this appeal is benefit of Sections 11 and 12 of the I.T. Act to the assessee-society and not under section 10(23)(vi) of the I.T. Act. In A.Ys. 2006-2007, 2009-2010, 2010-2011, 2011-2012 and 2012-2013, the A.O. passed the scrutiny assessments and claim of the assessee-society under sections 11 and 12 have been allowed and these Orders have been passed by the A.O. after Judgment of Hon’ble Punjab & Haryana High Court under section 10(23C)(vi) of the I.T. Act, 1961. It may also be noted that the land purchased at Dhokra was in earlier year for which no adverse inference has been drawn in earlier years. Therefore, nothing could be attributable against the assessee-society, if assessee-society violated conditions of Section 11. Considering the totality of the facts and circumstances of the case and history of the assessee-society, in the light of Order of the Tribunal for A.Y. 2007-2008 dated 24.09.2014 (supra), we do not find any justification to interfere with the Order of the Ld. CIT(A) in granting exemption under section 11 of the I.T. Act. The Order of the CIT(A) is confirmed and Departmental Appeal stands dismissed. Denying exemption for investments in properties - Held that:- The findings of the Ld. CIT(A) that Section 11(3) is applicable is also not correct because income accumulated under section 11(2) was applied for educational purposes. Considering the totality of the facts and circumstances of the case noted above in the light of finding of fact recorded by the Ld. CIT(A) and Tribunal in A.Y. 2007-2008, it is clear that no addition could be made against the assessee-society of such nature. The order of the Ld. CIT(A), therefore, cannot be sustained in law for enhancing the income of assessee-society of ₹ 6,77,16,875/- and that too by invoking Section 11(1B) and Section 11(3) of the I.T. Act, which are not applicable to the case of the assesseesociety. The decisions relied upon by the Ld. D.R. are not applicable to the facts of the case. In view of the above discussion, we set aside the Order of the Ld. CIT(A) and delete the addition of ₹ 6,77,16,875/-. Accordingly, appeal of the assessee-society is allowed.
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