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2020 (10) TMI 254 - HC - Income TaxExemption u/s 11 - disallowing the investment in gold bullion by the appellant and treating the same as a violation of Section 11(5) - Tribunal came to the conclusion that the purchase of gold by the assessee was not application of funds, but an investment in gold bullion and this investment is in violation of Section 11(5) - HELD THAT:- There is nothing on record to indicate that this opinion was formed by the Tribunal and recorded in its order after the assessee had an opportunity to put forth their contention. Assessee's case is that if such was the view of the Tribunal, then the assessee's case should have been considered as per the proviso (iia) to Section 13(1)(d) - The assessee would contend before us that the asset, not been specified investment, can be held for a period of one year from the end of previous year in which such an asset was acquired, which is the case of the assessee. Since this issue was not dealt with by the Tribunal, rather the assessee appears to have not been put on notice, the above opinion formed by the Tribunal holding that the purchase of gold by the assessee was not application of funds, but an investment in gold bullion, we find that the assessee has been put to prejudice. Therefore, they are required to be granted a fresh opportunity to put forth their contention. Appeal is allowed and the finding rendered by the Tribunal [2014 (9) TMI 957 - ITAT CHENNAI] is set aside and the matter is remanded to the Tribunal to consider the said issue afresh.
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