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2014 (1) TMI 974 - ITAT DELHIWhether receipt of Development Fund from students is liability or part of fees collected - Revenue receipt or capital receipt - exemption u/s 11 - Held that:- The assessee has treated the receipts as liability because the same are being separated for being utilised in providing amenities to the school children - The assessee has been following the same treatment in earlier years and the AO has not disputed the same - No cogent reason for deviating from the past has been brought on record - As per the notification issued by the Director of Education - Funds so collected in this regard should be specifically incurred for the purpose for which it is collected - When the collection is meant for being spent on activities in the capital filed, the same cannot be treated by the Assessing Officer as revenue receipt. Depreciation on assets treated as application of income - Held that:- Following CIT vs. Tiny Tots Education Society [2010 (7) TMI 377 - Punjab and Haryana High Court] - The income of the assessee being exempt, the assessee is only claiming that depreciation should be reduced from the income for determining the percentage of funds which have to be applied for the purposes of the trust - No double benefit is given in allowing claim for deprecation for computing income for purposes of Section 11 - Decided against Revenue.
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