Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2014 (3) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2014 (3) TMI 1014 - AT - Income TaxEligibility to claim exemption u/s 11 in respect of receipts towards ‘building’ and ‘development’ funds - Held that:- The present assessee has been imparting education starting from nursery to PUC which has been admitted by the AO in the assessment order. Therefore, the question of attributing that the assessee allegedly collected ‘capitation fees’ in the guise of ‘building fund or development fee’ doesn’t arise. Taking into account the facts and circumstances of the issue as deliberated upon and also in conformity with the judicial views especially (i) the ruling of the Hon’ble Jurisdictional High Court in the case of Bharatiya Samskriti Vidyapith Trust (2013 (11) TMI 1594 - KARNATAKA HIGH COURT) and (ii) ACIT v. M/s. JSS Mahavidyapeetha (2013 (4) TMI 761 - ITAT BANGALORE), we are of the view that the authorities below were not justified to deny the claim of the assessee for exemption u/s 11 of the Act in respect of ‘building fund’ as well as ‘college development fund’. - Decided in favour of assessee Amount advanced to Kaveri Charitable Trust - whether amounts to application of income for the purposes of s. 11 - Held that:- Hon’ble Delhi High Court has, in the case of DIT (Exemption) v. ACME Educational Society reported in (2010 (7) TMI 159 - DELHI HIGH COURT) on an identical issue to that of the present one, held that “the interest-free loan given by the assessee-society to the other society did not violate section 13(1)(d) read with section 11(5) of Act, 1961, as the loan was neither an ‘investment’ nor a ‘deposit’. Moreover, both societies had similar objects and were registered under section 12A of the Act and had approvals under section 80G……….” In conformity with the judgment of the Hon’ble Delhi High Court (supra), we are of the view that the assessee is entitled to exemption.- Decided in favour of assessee Denial of claim of depreciation as application of income u/s. 11 - Held that:- The amount of depreciation debited to the account of charitable institution is to be deducted to arrive at an available income from charitable or religious purposes. Following the decision of the jurisdictional High Court, we, therefore, hold that the depreciation is to be deducted to arrive at income available to charitable and religious purposes . See ACIT v. Sri Adichunchanagiri Shikshana Trust [2013 (11) TMI 123 - ITAT BANGALORE ] - Decided in favour of assessee
|