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2016 (6) TMI 1351 - AT - Income TaxExemption u/s 11 - charitable activities u/s 2(15)- income earned from auditorium - treatment of excess receipt over expenditure on the auditorium owned by the assessee - advancement of any other object of general public utility - whether a particular activity is in the nature of business or not ? - activities incidental to main objective - HELD THAT:- Supreme Court in the case of Thanthi Trust [2001 (1) TMI 80 - SUPREME COURT] held that the trust carried on the business of a newspaper and that business itself was held under trust. The charitable object of the trust was the imparting of education which falls u/s. 2(15) of the Act. The newspaper business was incidental to the attainment of the object of the trust, namely that of imparting education and the profits of the newspaper business are utilized by the trust for achieving the object of imparting education. In this case, there is no such nexus between the activities carried on and the objects of the assessee that can constitute an activity incidental to the attainment of the objects, namely, to promote cause of charity, mission activities, welfare, employment, diffusion of useful knowledge, upliftment and education and to create an awareness of self-reliance among the members of the public etc. We are therefore, of the opinion that the observations of the Supreme Court must be understood and appreciated in the background of the fact in that case and should not be extended indiscriminately to all cases. Being so, we are inclined to hold that the assessee is not entitled for any exemption u/s. 11 of the I.T. Act. Depreciation u/s 32 - HELD THAT:- Also assessee is not entitled for depreciation on the opening balance of written down value of the assets in the asst. year under consideration, which were purchased in earlier years and the cost of those assets have already considered as application of income in earlier asst. year while granting exemption u/s.11 of the Act. This issue is squarely covered by the decision of the Tribunal in the case of M/s. Kongunadu Arts & Science College Council [2015 (11) TMI 1119 - ITAT CHENNAI] - Decided against assessee.
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