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2013 (7) TMI 382 - AT - Income TaxEntitlement to exemption u/s. 11 - Held that:- AO has not doubted the fact that the assessee is imparting education and as per the settled law of taxation imparting education is covered by the word charitable activity. If income earned by a trust is utilised for charitable purposes it cannot be held that trust is carrying out business. FAA has rightly pointed out that there is no evidence on record that profit earned by the assessee-trust were not utilised by it for non charitable purposes. It is also a fact that there is no instances of violation of provisions of sections 11-13 by the trust. See Gujarat Maritime Board [2007 (12) TMI 7 - SUPREME COURT OF INDIA] and Surat City Gymkhana [2008 (4) TMI 16 - SUPREME COURT] - In favour of assessee. Claim of depreciation - AO held that the provisions of section 11 provided for deduction on expenditure incurred for objects of the trust and the deduction of depreciation on capital assets would amount to double deduction thus disallowed - Held that:- As decided in case of Institute of Banking Personal Selection, Bombay [2003 (7) TMI 52 - BOMBAY High Court] in case of trusts, so called double deductions are allowable. Income of a charitable trust derived from building, plant and machinery and furniture was liable to be computed in normal commercial manner although the trust may not be carrying on any business and the assets in respect whereof depreciation is claimed may not be business assets - In favour of assessee.
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