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2017 (11) TMI 1936 - AT - Income TaxExemption u/s 11 - Denial of exemption as franchisee fees received by the DPS Society from different satellite schools which are running under the name and logo of Delhi Public School having different management that the DPS Society - HELD THAT:- It is seen from various orders placed in the paper book for the various assessment years in assessee’s own case, passed by this Tribunal that, this issue now stands settled in favour of assessee and against revenue. It is also observed that Ld.CIT (A) followed the binding decision of this Tribunal in assessee’s own case for the previous assessment years. In view of the above we do not find any infirmity in the order passed by Ld. CIT (A) and the ground raised by revenue stands dismissed Deduction on account of depreciation denied - AO was of the opinion that assessee was a trust and it was deriving income from depreciable assets and held that depreciation could not be taken into account because full capital expenditure has been allowed in the year of acquisition of the assets - HELD THAT:- As relying in own case [2012 (10) TMI 786 - ITAT, DELHI] and case of Indraprastha Cancer Society, Abul Kalam Azad Islamic Awakening [2014 (11) TMI 733 - DELHI HIGH COURT] By Finance (No. 2) Act of 2014, sub-section (6) to Section 11 stands inserted with effect from 1st April, 2015 to the effect that where any income is required to be applied, accumulated or set apart for application, then for such purposes the income shall be determined without any deduction or allowance by way of depreciation or otherwise in respect of an asset, the acquisition of which has been claimed as application of income under this Section in the same or any other previous year. The legal position, therefore, would undergo a change in terms of Section 11(6), which has been inserted and applicable with effect from 1st April, 2015 and not to the assessment years in question. The newly enacted sub-section relates to application of income Set off of loss and carry forward of claim for excess application for the year - HELD THAT:- As decided in own case [2012 (10) TMI 786 - ITAT, DELHI] adjustment of the expenses incurred by the trust for charitable and religious purposes in the earlier year against the income earned by the trust in the subsequent year would amount to applying the income of the trust for charitable and religious purposes in the subsequent year in which such adjustment has been made and will have to be excluded from the income of the trust u/s 11(1)(a) - decided in favour of assessee.
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