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2019 (3) TMI 579 - HC - Income TaxExemption u/s 11(1)(a) - purchasing the leasehold rights in respect of the immovable property, an Auditorium - as per AO advance by the Assessee Trust did not crystalise in any 'application of income' by the Assessee during the year itself and was in 'suspended animation' and, therefore, the said expenditure or outgo of money would not amount to 'application of income' by the Assessee during the relevant year - denial of exemption on an assumed distinction between the 'application' and 'investment' - whether the 'investment' can also amount to 'application' or not? - HELD THAT:- Assessee in the present case while making the advance of ₹ 52.00 lakhs in question for purchase of immovable property in question even on lease basis, cannot be said to have not applied its income during the year in question for the charitable purposes within the meaning of Section 11(1)(a) of the Act and, therefore, the Assessee was clearly entitled to exemption under the said provision in respect of the said investment in immovable property. We cannot agree with the contention of the learned counsel for the Revenue that such advance did not crystalise in any 'application of income' and was in suspended animation as we have already indicated above that nothing contrary was brought on record by Revenue that this advance did not crystalise in any 'application of income' in favour of the assessee during the year or even subsequently. On the contrary, it was contended at the bar by the Assessee that the leasehold rights were secured by the Assessee with the said investment and building on the said leasehold land is under construction as of now. No hesitation in holding that the advance or investment in the said lease hold property by the Assessee's Charitable Trust in the year in question could be held to be 'application of income' within the meaning of Section 11(1)(a) of the Act and therefore, the Assessee was entitled to the exemption.- Decided in favour of assessee
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