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2020 (12) TMI 1148 - AT - Income TaxReopening of assessment u/s 147 - exemption under section 11 and 12 denied - AO has noticed that since 85% of the income for the year under consideration was not applied by the assessee for charitable purpose therefore the assessee was not entitled to exemption u/s. 11 - HELD THAT - We are not convinced with the arguments of the assessee that the assessee has fully and truly disclosed all material facts necessary for his assessment. It is apparent from the assessment order dated 13.2.2014 that the assessee did not disclose fully and truly the very material fact that the assessee had not applied 85% of the income/receipts of the year for charitable purposes which was a pre-condition for grant of exemption u/s. 11. Had the assessee disclosed this material fact to the AO the Assessing Officer would not have accepted the return of the income of the assessee. In view of this we do not find any merit in ground No. 1 of the appeal and the same is therefore dismissed. Deduction u/s. 11 - alternative claim u/s. 10(23C)(iiiad) was also made before the Assessing Officer and the Assessing Officer was supposed to consider the same - HELD THAT - We find force in the above contention of the assessee. If the assessee otherwise is eligible for deduction under the provisions of section 10(23C)(iiiad) of the Act the said claim of the assessee in our view is required to be examined by the AO. The issue is therefore restored to the file of the AO with a direction to consider the alternative claim of the assessee of its eligibility to claim exemption from taxation under the provisions of section 10(23C)(iiiad) of the Act if the assessee otherwise qualify for the same irrespective of the fact whether or not the assessee had made a specific claim in the original return of income in this respect. This issue is accordingly restored to the file of the Assessing Officer. As contested the denial of claim of exemption under the provisions of section 11 of the Act. Admittedly the assessee did not apply 85% of the income/receipt on charitable purposes as required under the provisions of section 11 of the Act. Therefore there is no merit in this ground of appeal and the same is accordingly dismissed.
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