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2022 (10) TMI 27 - AT - Income TaxDenial of exemption u/s 11 - whether nature of receipts is from the services rendered to the builders and developers for smooth development of residential and commercial building in slum areas and therefore, these activities are directly hit by the proviso to section 2(15)? - HELD THAT:- Lower authorities have not examined whether these receipts arose on carrying out of the activities integral to assessee’s functions or its principal objects or as to whether the same was necessary for furtherance of objects for which the assessee was established. In fact, the continuation of principal / main activity and the direct correlation between the two is relevant to decide whether assessee’s case fall within the category of ‘advancement of any other object of general public utility’. Therefore, we remand this issue also to the file of AO for de novo adjudication after necessary examination of the aforesaid aspects. We further direct the assessee to provide details as may be required by the AO for complete adjudication of aforesaid aspects. Since, various aspects pertaining to section 2(15) of the Act have been remanded to the AO for de novo adjudication and once the assessee satisfies those aspects, it can be said to be eligible to claim exemption u/s 11 - The ground raised by the assessee pertaining to denial of exemption u/s 11 is also remanded to the file of AO for de novo adjudication in light of the conclusion reached in the remand proceedings. In these appeals, revolve around assessee’s claim of exemption u/s 11 of the Act, therefore, these grounds are also remanded to the AO for de novo adjudication. Accordingly, all the grounds raised by the assessee, in these appeals, are allowed for statistical purpose.
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