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2021 (1) TMI 527 - AT - Income TaxDenial of exemption u/s 11 - AO concluded that the assessee merely is a mutual concern having no charitable object - assessee is a company with charitable object formed under section 26 of the Companies Act, 1956 and has also been granted registration under section 12A - HELD THAT:- If the objects on the basis of which the assessee was granted registration under section 12A of the Act by considering them to be of charitable nature, then, in absence of any change in such objects of the assessee, it is not understood how it can lose its identity of a charitable institution in the impugned assessment year, that too, when the registration granted under section 12A of the Act is still in vogue. Undisputedly, the departmental authorities have disallowed assessee’s claim of exemption under section 11 of the Act on the reasoning that it provides services only to its members Before us, referring to the objects learned counsel for the assessee has submitted that services are provided to others as well. This claim has not been factually verified by the departmental authorities - assessee’s claim of exemption under section 11 has to be considered properly having due regard to the relevant facts and more particularly after examining whether the objects of the assessee on the basis of which registration was granted under section 12A of the Act remains the same or has undergone any change in the meanwhile. Thus restore the issue to the Assessing Officer for fresh adjudication after providing reasonable opportunity of being heard to the assessee. - Assessee appeal allowed for statistical purposes.
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