The assessee, a charitable trust, sold immovable property for Rs. 75 lakhs and reinvested the proceeds in fixed deposits with a nationalised bank, later converted into a capital gains account, but the AO treated the entire sale proceeds as taxable business income, denied exemption under section 11(1A), and separately added Rs. 4,41,961 as taxable interest income, which CIT(A) partly sustained. On appeal, the Tribunal held that the assessee had furnished sufficient evidence of deposit of the sale consideration in fixed deposits, which as per CBDT Instruction No. 883 of 1975 amounted to utilisation of net consideration for acquiring another capital asset under section 11(1A), and since the assessee had also shown that the capital gains were ultimately utilised for purchasing another immovable property, the AO was directed to verify the facts and allow relief; it further held that the interest income, having been retained in the bank savings account, duly reflected in the audited balance-sheet, and invested in a mode specified under section 11(5), qualified for exemption under section 11(1).(AY. 2016-17)