Section 11, 12AA, 13 of Income Tax Act, 1961—Rejection of exemption claimed u/s 11—In the instant case, appeal is filed by assessee against the order passed by ITAT.

The question is that whether the AO was right in totally rejecting the claim of exemption under Section 11 of the Act on the ground that the assessee had violated the provisions of Section 11(5) read with Section 13(1)(d) of the Act.

Held that— we are of the considered view that the Tribunal ought to have applied the decision in the case of Working Women’s Forum and accordingly should have restricted the denial of exemption only to that portion of the investments, which were made by the assessee in violation of Section 11(5) of the Act.

the appeal filed by the assessee is allowed, the orders passed by the Tribunal, the CIT (A) and the Assessing Officer are set aside and the substantial questions of law are answered in favor of the assessee.[M/S. VINCENTIAN MADRAS SOCIETY, CHENNAI VERSUS THE DEPUTY COMMISSIONER OF INCOME TAX (EXEMPTIONS) III] [2018] 8 ITCD Online (67) [MADRAS HIGH COURT]