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2023 (11) TMI 80 - ITAT DELHIAssessment of trust - Benefit of exemption u/s 11 - investment made in Prakash hospital - As contended that the entire investment has been received back by the trust, therefore, no benefit is derived by Prakash Hospital Private Limited - CIT(A) allowing benefit of exemption to assessee - HELD THAT:- CIT(A) was of the opinion that even if the entire investment has been received back by the assessee the fund which was utilized by Prakash Hospital Private Limited saved interest in as much as if the assessee trust had not given the loan fund Prakash Hospitals would have borrowed the loan and paid interest thereon. The appellant has worked out interest @ 12% over the fund utilized by the hospital - The above findings of the CIT(A) are in line with the relevant provisions of the Act, therefore, called for no interference. Denial of benefit of exemption claimed u/s. 11 - HELD THAT:- We are of the considered view that any violation u/s. 13 does not result in denial of exemption u/s. 11 of the Act to the total income of the assessee meaning thereby that only that income is denied exemption which is in violation of section 13 of the Act. For this proposition we draw support from case of Mullers Charitable Institutions [2014 (2) TMI 1033 - KARNATAKA HIGH COURT] wherein as held that “it is only the income from such investment or deposit which has been made in violation of Section 11(5) of the Act that is liable to be taxed”. Revenue appeal dismissed.
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