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2023 (2) TMI 525 - AT - Income TaxExemption u/s 11 - enhancing the addition - accumulation of charitable income as per section 11(1)(a) on the income from the pharmacy business of the assessee trust - interpretation of the term income from property held for charitable purposes in the relation to businesses qualifying as such properties - whether to be calculated on its gross receipts or on the net profits & gains of the business? - CIT (Appeals) calculating deduction u/s 11(1) of the Act based on net income of pharmacy store instead of gross receipts - HELD THAT:- Income from properties held for charitable purposes are exempt from tax to the extent utilized for the said purposes. Also 15% of such income is allowed to be set apart or accumulated for the said purpose and treated as deemed application/utilization for charitable purposes. We uphold order of the ld.CIT(A) holding that it is the only profits and gains derived from the incidental business of the assessee charitable-trust i.e. its pharmacy business, which would qualify as income for the purpose of computing the statutorily allowed accumulation at the rate of 15% in terms of section 11(1)(a) of the Act. Decided against assessee.
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