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2022 (8) TMI 585 - AT - Income TaxExemption u/s 11 - violation of Section 13(1)(d) r.w.s. 11(5)(1) - AO held that although the assessee is registered u/s 12AA the trust is not doing any charitable activity - amount given us loan would be treated as taxable - AO held that the society has diverted its fund and invested in violation of 11(5) - HELD THAT:- In the instant case, the assessee has neither deposited nor made investments by extending loan to the parties mentioned above. Hence, the provisions of Section 13(1)(d) and 11(5) are not applicable. To decide the issue, we have gone through the provisions of Section 11(1)(d) existing as on the Assessment Year applicable to the assessee which were brought by the amendment w.e.f. 01.04.1989 and also the further amendments brought out w.e.f. 01.04.2021. From the concurrent reading of the provisions as on 01.04.1989 and as on 01.04.2021, we find that there was no mandate that the corpus donations have to be necessarily invested or deposited one or more of the forms or modes specified in sub-section (5) maintained specifically for such corpus. Hence, the appeal of the assessee for the instant year is allowable. Decided in favour of assessee.
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