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2022 (12) TMI 376 - AT - Income TaxExemption u/s 11 - investment of accumulated income - spending more than 85% of the receipts for charitable purposes - limitation of applying 85 % or less for the purpose of applicability of Section 11(5) - As submitted assessee has complied with the mandate of Section 11(1) by spending more than 85% of the receipts for charitable purposes so inspite of the deposits otherwise then modes specified u/s 11(5) of the Act or valid investments, the assessee will continue to get the benefit u/s 11 - appellant society is registered under section 12A vide registration and is engaged in organizing golf tournaments in India and abroad for the promotion of game of golf in India - HELD THAT:- The Bench is of considered opinion that the belief of assessee was erroneous that having spent 85% of the receipts for charitable purposes, the remaining could have been used in any manner whatsoever beyond the scope of Section 11(5) of the Act. Instead, the Bench is of view that Section 11(5) provides for investing or depositing money referred to in clause (b) of sub-section 2 of Section 11, in the identified investments falling in clause (i) to (xii) of Section 11(5) of the Act. The money referred in Clause (b) (ii) is one accumulated or set apart. Meaning thereby that even if 85% of the income referred in clause (a) or sub-clause (b) of sub section 1 of Section 11 read with the explanation 2 to that sub section (1) is applied to charitable or religious purposes then to claim exemption on the whole of the income, the accumulated or set apart income has to be deposited or invested in the investments identified in sub section (5) of section 11. Aforesaid view of the Bench is fortified by the following findings in M/s. Navajbhai Ratan Tata Trust [2022 (3) TMI 565 - ITAT MUMBAI] - Thus there is no error in the findings of Ld. AO or the Ld. CIT(A). The ground raised are not sustainable, the appeal is dismissed ex parte.
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