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2019 (6) TMI 293 - ITAT DELHIDepreciation claim of assessee trust - entitled to depreciation u/s 32 on assets whose cost has been allowed as application to charitable purposes - scope of Amendment in Section 11(6) - HELD THAT:- Issue is covered in favour of the assessee by the Judgment of CIT vs. Rajasthan and Gujarat Charitable Foundation [2017 (12) TMI 1067 - SUPREME COURT] in which it was held that “the assessee is entitled to depreciation u/s 32 on assets whose cost has been allowed as application to charitable purposes u/s 11(1)(a)”. We may also note that the Amendment in Section 11(6) has been brought by Finance Act, 2014, which becomes effective from A.Y. 2015-2016. Therefore, it is not applicable to assessment year under appeal i.e., 2010-2011. - Decided in favour of assessee Exemption u/s 11 - charitable activity or not? - hostel facility provided by the assessee society - HELD THAT:- We are of the view that since assessee exist for educational purpose only and hostel facility provided by the assessee society is incidental to the main objectives of the assessee society for education only, therefore, the authorities below were not justified in considering it to be activity of business in nature. Thus, the surplus out of hostel facility shall have to be considered as for educational purpose only which have to be applied for educational purposes only. Therefore, the addition made by the authorities below cannot be sustained. We, accordingly, set aside the Orders of the authorities below and delete the entire addition. - Decided in favour of assessee
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