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2019 (8) TMI 1635 - AT - Income TaxExemption u/s 11 - Denial of exemption as receipts are on account of franchisee fee and the same are in the nature of business income within the meaning of provisions of sub-section 4A of section 11 - HELD THAT- In the case of aforesaid precedent of DIT(E) vs. Delhi Public School Society [2018 (4) TMI 714 - DELHI HIGH COURT] [2018] 92 taxmann.com 132 (Delhi), it was held by Hon’ble High Court of Delhi in assessee’s own case that the assessee society was maintaining schools in furtherance of educational purpose and that also qualified as charitable purpose under section 2(15) and, therefore, assessee society fulfilled requirements to qualify for exemption under section 10(23C)(vi). In the case of DIT(E) vs. Delhi Public School Society [2018 (11) TMI 653 - SC ORDER] [2018] 100 taxmann.com 80(SC), a special leave petition of Revenue against the aforesaid order of Hon’ble Delhi High Court was dismissed by Hon’ble Supreme Court. In the case of CIT vs. Rajasthan & Gujarati Charitable Foundation Poona [2017 (12) TMI 1067 - SUPREME COURT], it was held by Hon’ble Supreme Court that in the case of charitable institution registered under section 12A, even though expenditure incurred for acquisition of capital assets was treated as application of income for charitable purposes under section 11(1)(a), yet depreciation would be allowed on assets so purchased. Both sides have agreed that the issues in dispute are covered in favour of the assessee.
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