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TMI Blog2013 (12) TMI 722X X X X Extracts X X X X X X X X Extracts X X X X ..... KSRTC Employees Death-cum-Retirement Benefit Fund. The assessee filed the return of income for the assessment year 2000-01 on 18.09.2000 declaring total income as Nil by claiming exemption under Section 11 and 12/10(23AAA). Similarly, the returns of the year 2001- 02 was also filed on 16.08.2001 claiming the said benefit. The case was taken up for scrutiny. On perusal of the Income and Expenditure Statement and Balance Sheet, it was noticed that the assessee had made deposits with M/s. Veerashaiva Sahakara Sangha and M/s. Karnataka Veerashaiva Vidyabhivrudhi Samsthe Ltd. The Assessing Officer was of the view that the said two Institutions do not fall under the purview of Section 11(5) of the Income Tax Act, 1965 (for short, hereinafter ref ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... under Section 11(5) of the Act, the assessee is not entitled to the benefit under the said provision also and therefore, he proceeded to pass an assessment order denying the exemption. 3. Aggrieved by the said order, the assessee preferred an appeal to the Commissioner of Appeals. The Appellate Authority held that the violation of Section 11(5) is due to the mistaken impression of the Secretary of the Fund. Then he relied on the judgment of the Madras High Court, which has held that in the event of such violation, the income arising from the said violation to that extent shall be denied exemption under Section 10(23AAA) of the Act and therefore, he directed the Assessing Authority to restrict the denial of exemption under Section 10(23AAA ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s as may be notified by the Board in the Official Gazette, for the welfare of employees or their dependants and of which fund such employees are members if such fund fulfils the following conditions, namely : - (a) the fund - (i) applies its income or accumulates it for application, wholly and exclusively to the objects for which it is established; and (ii) invests its funds and contributions and other sums received by it in the forms or modes specified in sub-section (5) of section 11; (b) the fund is approved by the Commissioner in accordance with the rules made in this behalf: Provided that any such approval shall at any one time have effect for such assessment year or ..... X X X X Extracts X X X X X X X X Extracts X X X X
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