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2011 (3) TMI 907 - AT - Income TaxRegistration under section 12A - Deduction u/s 11 - Depreciation - Since the appellant was carrying on the activities and rendering services as per its objects only, it was not at all carrying on any business activity as has been stated by the Assessing Officer - When the exemption is claimed under the concept of mutuality, then it is necessary to see that the services should be rendered to the members only - it becomes clear that admitted position is that the assessee is carrying on certain activities, which are in the nature of the carrying on of the business - The provision contained in section 11(4A) is clear to the effect that various deductions under section 11 shall not be admissible in relation to any income, being profits and gains of business - it is not clear whether separate books of account have been maintained for such business or businesses - If the conditions prescribed in section 11(4A) stands satisfied, the assessee will be entitled to other deductions under section 11, otherwise not - Decided in favour of the assessee by way of remand to AO Regarding depreciation - assessee has never written off capital assets from its accounts by treating them as application of income. Therefore, it is argued that the assessee is entitled to the deduction of depreciation - Appeal is allowed for statistical purposes
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