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2021 (5) TMI 759 - AT - Income TaxExemption u/s 11 - Revenue filed Miscellaneous appication (MA) stating that its Cross objection was not adjudicated with the appeal of the assessee - HELD THAT:- Tribunal was of the view that since character of the assessee has been changed, it has been held that it is entitled for the benefit of sections 11 and 12 of the Act, and considering its nature as a charitable institution, the exercise of determining the income has to be carried out afresh. In such circumstances, quantification and impact of section 11(5) and 13(1)(d) has to be examined afresh. The Tribunal has observed that this aspect could be looked into while determining the taxable income of the assessee. In the first round, the income of the assessee was determined by denying exemption under section 11 and 12. This stand of the AO was reversed by the Tribunal, and the matter was relegated to him to examine afresh. We fail to understand how it can be pleaded that CO filed by the Revenue has not been considered on merit. These very issues were available in appeals of the assessee as well of the Revenue. The ultimate dispute was true determination of the income of the assessee. In the first round, the AO was of the view that benefit of sections 11 and 12 cannot be granted. This stand did not meet approval of the Tribunal. Once it is to be held that the assessee is a charitable institution and it is entitled for benefit u/s 11 and 12, then all other aspects of section 11(5) and 13(1)(d) etc are to be considered afresh. Somehow, it appears that the ld.AO failed to comprehend or concur with the higher appellate authorities about the status of the assessee being held as charitable institution, which is entitled for the benefit of section 11 and 12. Misc. Application of the Revenue is dismissed.
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