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2017 (9) TMI 965 - AT - Income TaxExemption u/s 11 - disallowing /adding rent (s) paid to trustees - excessive payments to specified persons u/s 13(3) - Held that:- The CIT(A) has taken into account an approved valuer’s report as well as all corresponding documents indicating all relevant particulars indicating the assessee to be utilizing vacant space alongwith land and building whilst concluding that the payments in question cannot be held as excessive ones. It has further come on record that the assessee had been paying similar rents in preceding assessment years as well. It places on record assessment order(s) pertaining to earlier assessment years not showing any such disallowance. The Revenue fails to rebut all these findings with the help of any cogent evidence on record. - No disallowance. Corpus fund addition in assessee's income - Held that:- Such a corpus is not assessable as taxable income as per case law DIT(E) vs. N. H. Kapadia Education Trust (2012 (5) TMI 236 - ITAT AHMEDABAD) and ITO vs. Sardar Vallabhbhai Education Society (2012 (10) TMI 283 - ITAT AHMEDABAD ). The Revenue is unable to point out any distinction on facts or law therein. We therefore decline the instant substantive ground as well. Treating development fund as assessee’s taxable income - Held that:- It is no more in dispute that this assessee is a registered trust(supra). Learned counsel for the assessee takes us to pages 16 to 18 of the paper book indicating it to have utilized the impugned development fund in relevant previous year. A co- ordinate bench in ITO vs. J. D. Tytler School Society (2014 (1) TMI 974 - ITAT DELHI) holds that such a development fund forming part of student fee as utilized in their amenities and welfare is in the nature of capital receipt not assesseable as income. We therefore find no reason to upset CIT(A)’s above extracted conclusion. This fifth substantive ground is accordingly rejected. Expenditure on donation to Delhi Public School as part of expenditure - Held that:- There is again no discussion in assessment order. We however find that hon’ble jurisdictional high court’s decision in Sarla Devi Sarabhai Trust’s case (1988 (3) TMI 53 - GUJARAT High Court) already decides the very issue in assessee’s favour. We therefore affirm the CIT(A)’s conclusion under challenge. The Revenue fails in its sixth substantive ground as well. Considering assessee’s investment in fixed assets as application of income as well as its deduction - Held that:- Satya Vijay Patel Hindu Dharmashala Trust v. CIT [1971 (12) TMI 8 - GUJARAT High Court ] wherein it has been "Held that the amount spent by the trustee in the construction of the new dharamshala was an application of income towards the charitable purposes of the trust" - Decided against revenue Disallowing depreciation to assessee trust - double deduction - Held that:- We find that this issue is no more res integra as hon’ble jurisdictional high court’s decision in CIT vs. Seth Manilal Ranchhodlal Bhavan Trust [1992 (2) TMI 51 - GUJARAT High Court] Revenue appeal dismissed.
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