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2018 (4) TMI 250 - AT - Income TaxExemption u/s 11 disallowed - activities of the appellant authority are not charitable as the registration of the trust is pending - assessee was not granted registration 12A - Held that:- Now the registration u/s 12A has been granted by the ld. CIT(E) vide order dated 15.12.2016 w.e.f. 01.04.2013 therefore, the activity of the assessee has been accepted as charitable in nature. The Hon’ble jurisdictional High Court in case of Urban Improvement Trust, Alwar, Kota and Ajmer (2018 (4) TMI 192 - RAJASTHAN HIGH COURT) the assessee is eligible for the benefit u/s 10(20) of the Income Tax Act being a local authority for the purpose the carrying out the improvement and development functions of the state. Hence, in view of the decision of the Hon’ble Jurisdictional High Court (supra) as well as the registration granted u/s 12AA of the CIT(E). We are of the opinion that the assessee’s income is not taxable in view of the provisions of section 10(20) of the I.T. Act. As regards the disallowance of depreciation it is now settled principle of law that the cost of acquisition of the asset is allowed an application would not be a ground of disallowance of deprecation. Hence, the addition/disallowance made by the AO are deleted. - Decided in favour of assessee.
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