Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2015 (10) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2015 (10) TMI 2162 - AT - Income TaxExemption u/s 11 & 12 - whether assessee is involved in the promotion of football games and sports and as such it is a charitable work and the assessee is eligible for exemption u/s 11 - CIT(A) deleted the addition - Held that:- What needs to be emphasized is whether the receipt of amounts by way of sponsorship from various parties would make the activity ‘commercial’ as held by the Assessing Officer. The mere fact that the appellant society had generated sponsorship funds, during the course of carrying on the ancillary objects, shall not alter the character of the main objects so long as the predominant object continues to be charitable and not to earn the profit. Therefore, we hold that the Respondent Assessee is entitled to exemption of income under the provision of Section 11 of the Act. Further the proviso to Section 2(15) of the Act cannot be applied to the appellant society as it is not engaged in any activity which is in the nature of trade, commerce and business. Accordingly, we direct the Assessing Officer to allow the exemption under the provisions of Sec. 11 of the Act. - Decided in favour of assessee. Disallowance of depreciation - Held that:- It is observed that the Respondent Assessee is only claiming that depreciation should be reduced from the income for determining the percentage of funds which have to be applied for the purposes of trust. It is further observed that the Respondent Assessee has not claimed double deduction. The judgment of Indraprastha Cancer (2014 (11) TMI 733 - DELHI HIGH COURT) has considered the judgments of Charanjiv Charitable Trust [2014 (3) TMI 760 - DELHI HIGH COURT] and Indian Trade Promotion (2015 (8) TMI 89 - DELHI HIGH COURT) wherein decided to allow depreciation on capital asset in the computation of income apart from treatment of purchase of capital asset as application of income. - Decided in favour of assessee.
|