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2012 (10) TMI 433 - AT - Income TaxEligibility for benefits of Section 11 - Appeal is made by Revenue against the order of CIT(A) - Donations,Auditorium fee and Building fund - Held that:- Assessee has not charged any money by whatever name it is called, i.e. donation, building fund, auditorium fee etc, over and above the prescribed fee for the admission of students, the assessee would be entitled for exemption under S.11, even though the notification under S.10(23C)(vi) of the Act have not been received by it. Claim of Depreciation - Held that:- As purchase of capital asset is used to promote the objective of the trust and not for any Business Activity is allowed as application of income, depreciation is not allowable on capital asset. Entire cost of acquisition is treated as application of income and is either written off in the first year or carry-forward to subsequent years itself - issue raised by the Revenue is set aside to the file of the Assessing Officer for fresh consideration after giving reasonable opportunity of hearing to the assessee. Disallowance u/s 13(1)(c) of the Act - Held that the payment of Rs.3,60,000/- per annum as honorarium to the Secretary of society, which was not proved to be in excess of the normal and prevalent remuneration being paid for an identical services contemporaneously, cannot be considered as a “benefit” to the interested person as would attract the provisions of section 13(1)(c) and debar the appellant from claiming exemption u/s. 11. The assessing officer is therefore directed not to deny exemption u/s. 11 on this ground alone.
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