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2022 (4) TMI 1122 - AT - Income TaxExemption u/s 11 - assessee is a charitable trust registered u/s. 12AA - AO calculated the deduction u/s. 11(1)(a) at the rate of 15% on actual receipt of the assessee & passed the order accordingly - HELD THAT:- CIT(A) is mentioned that the deduction should not be on hypothetical income. But the gross income which was received by the assessee during the year is not hypothetical. The action directed by the Ld. CIT(A) is totally devoid of any logic. The gross income is entered in the books of the assessee and accordingly reflected in final accounts. The gross income should be ascertained from books of accounts of the assessee-trust. The calculation on actual receipt of assessee made by the Ld. AO is contrary to the view of the Act. Having regard to the clear pronouncement of their Lordships of the Supreme Court [2000 (11) TMI 4 - SUPREME COURT] the assessee is eligible for deduction u/s. 11(1)(a) of the Act. Accordingly the grounds of the assesses are allowed.
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