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2018 (7) TMI 2204 - AT - Income TaxExemption u/s 11 - Assessment of trust - assessee is making huge profits and the dominant object is profit-making - CIT- A allowed the deduction - HELD THAT:- CIT(A) followed the order in assessee’s own case for the Assessment Year 2009-10 inasmuch as the facts and circumstances of the case are the same and there is no material to deviate from such decision of the earlier year. It is also brought to our notice by the Ld. AR that this issue has been directly and substantially been dealt a with the by the Tribunal in assessee’s own case for the assessment years 2009-10 and 2012-13 and also the Hon’ble jurisdictional High Court upheld the findings of the Tribunal for Assessment Year 2009-10 Addition on account of interest income - AO observed that the assessee society had given some loans to Sh. Balkrishan Education and Social Welfare Society and added the notional interest at 12% to the income of the assessee - HELD THAT:- Tribunal deleted the same holding that the interest free funds transferred to Sri Balakrishna Society, having similar charitable objects, have finally reached to Sri Balakrishna Education and Social Welfare Society for construction of school building wherein 600 students of the assessee are studying. On this aspect also there is no allegation that the funds have not reached back finally to Sri Balakrishna Education and Social Welfare Society with which the assessee merged, for construction of school building. Depreciation to asset of assessee trust - claim of depreciation which the Ld. AO disallowed on the premise that the purchase of assets was an application of income and hence the grant of depreciation would amount to double benefit - HELD THAT:- This issue was considered in the light of the decision in CIT vs. Rajasthan and Gujarati Charitable Foundation, Poona [2017 (12) TMI 1067 - SUPREME COURT] to reach a conclusion that subsection (6) of section 11 was inserted by Finance Act, 2014 and is only prospective in nature, as such, depreciation cannot be disallowed. While respectfully following the same, we dismiss the grounds of appeal of revenue relating to this issue.
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