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2006 (6) TMI 153 - ITAT JAIPUR-AStock Exchange - charitable institution - Grant of exemption u/s 11 - benefit of accumulation of income - Objects of General Public Utility - whether the objects of the company are charitable or not? - claimed depreciation - HELD THAT:- The AO in the present case has failed to point out any specific instance that the assessee has not complied with the conditions mentioned in s. 11(5) of the Act. The AO has herself contradicted her own statement mentioning that the assessee does not have business income. Therefore, following the decision of the Tribunal in assessee's own case in the AY 1988-89 and consistency thereafter, we are of the view that the assessee is a charitable institution u/s. 2 sub-s. (15) of the Act and is eligible to exemption u/s 11 of the Act. The main decisions relied upon by the AO were in respect of Delhi Stock Exchange[1997 (3) TMI 11 - SUPREME COURT], Madras Stock Exchange [1976 (4) TMI 47 - MADRAS HIGH COURT], and Ahmedabad Stock Exchange[1990 (6) TMI 84 - ITAT AHMEDABAD-A]. All the said cases relied upon by the AO have been discussed in the paras hereinbefore wherein the said stock exchanges have been held to be a charitable institution u/s 2(15) of the Act and have been allowed exemption u/s 11 of the Act. Therefore, in the circumstances of the present case, following decision in assessee's own case and decisions of various stock exchanges referred to in this para, we hold the assessee as a charitable institution u/s 2(15) of the Act and assessee is eligible for grant of exemption u/s 11 of the Act and the assessee is allowed the benefit of accumulation of income. Thus, ground Nos. 1 and 2 of the Revenue are dismissed. Whether the depreciation claimed by the assessee on fixed assets is allowable deduction to arrive at the income available for application to charitable purposes - Assessee has relied upon judgments of various High Courts and the headnotes of said judgments by the various High Courts are: CIT VS. Society of the Sisters of St. Anne [1983 (8) TMI 44 - KARNATAKA HIGH COURT]. Following the same, Depreciation on fixed assets is an allowable deduction which is necessary to arrive at the income available for application to charitable purposes. Hence, depreciation on fixed assets in the present case is an allowable deduction. Therefore, the AO is directed to examine the claim of depreciation as per rules and allow the same to the assessee. Thus, ground No. 3 of the Revenue is dismissed. In the result, both the appeals of the Revenue are dismissed.
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