The assessee, a charitable trust, had provided interest-free loans to trustees, who used the funds to acquire immovable properties for construction of nursing college. These properties were leased back to the trust. The Assessing Officer disallowed a lease deposit of ₹25 lakhs, treating it as capital expenditure, and also disallowed hostel expenses of ₹27,72,490 as unpaid during the year. Further, the AO found that the trustees had received loans totalling ₹1,70,11,398, which were used to buy properties in their individual capacities, violating Section 13(1)(c)(ii), leading to denial of exemption under Sections 11 and 12. The CIT(A) upheld the AO’s decision but did not address specific grounds relating  to disallowed expenditures and the use of loans for property acquisition. The CIT(A), despite the assessee making specific submissions and enclosing documentary evidence, did not adjudicate specific grounds taken before him. The Tribunal, noting this, directed the CIT(A) to reconsider these issues. (AY. 2013-14)