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2014 (11) TMI 379 - ITAT MUMBAIAllowability of exemption u/s 11 – Charitable purpose u/s 2(15) - Held that:- The assessee has been recognised as a charitable institution looking to its objects and certificate under section 12A has been granted by the competent authority, vide certificate dated 21st June 1980 - In DIT (Exemption) v. Chembur Gymkhana [2012 (8) TMI 611 - Bombay High Court] it has been held that the fact that the membership of the club is open to a section of the community would not detract from the fact that the club has been constituted for the advancement of any other object of general public utility - The Club is not formed for the benefit of an individual or a group of individuals as such - while affirming that the object of the Club falls within the purview of Section 2(15), the matter is remitted back to the AO for determination as to whether as regards the application of the funds, the requirements of Section 11 have been duly fulfilled as the AO did not have an occasion to consider the application of the funds with reference to provisions of Section 11, since he had come to the conclusion that the Assessee does not fulfill the charitable purpose as defined in Section 2(15) – Thus, the AO is directed to compute the total income of the assessee in terms of sections 11 to 13 - Once the assessee is a charitable institution and duly recognised under section 12A, then income is to be computed in accordance with the provisions of section 11 only - Decided against revenue.
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