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2018 (3) TMI 1933 - AT - Income TaxBenefit of exemption u/s 11 - Whether Assessee society is a charitable organization despite the fact that the assessee society was doing business within the meaning of amended provisions of section 2(15)? - HELD THAT:- A copy of such order has been placed on record. After considering all the relevant material, the Tribunal has upheld the order of the first appellate authority in grant the benefit of section 11 to this extent. It is further a matter of record that the order of the Tribunal has been approved by the Hon'ble jurisdictional High Court [2017 (10) TMI 1584 - DELHI HIGH COURT] - In view of the foregoing facts, we are of the considered opinion that the ld. CIT(A) was right in granting the benefit of exemption u/s 11 to the extent impugned in the above three grounds. Depreciation to assessee trust - AO did not allow the claim of depreciation on the premise that the purchase of assets was an application of income and hence the grant of depreciation would amount to double benefit - We find that sub-section (6) has been inserted to section 11 by the Finance (No.2) Act, 2014 w.e.f. 01.04.2015 providing that no depreciation can be allowed once the purchase of assets has been treated as application of income. The Hon'ble Supreme Court in a recent decision dated 13.12.2017 in CIT vs. Rajasthan & Gujarati Charitable Foundation, Poona [2017 (12) TMI 1067 - SUPREME COURT] has approved the granting of depreciation in the period prior to amendment of section 11(6) by holding such amendment to be prospective. We, therefore, uphold the impugned order on this score.
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