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2018 (6) TMI 443 - AT - Income TaxDisallowance of benefits of section 11 & 12 - activities of the assessee are of commercial nature or not - charging bar code licensing fee - quantum of income - Held that:- following the judgement in case of M/S GS1 INDIA VERSUS DIRECTOR GENERAL OF INCOME TAX (EXEMPTION) AND ANOTHER [2018 (3) TMI 1601 - DELHI HIGH COURT and 2018 (2) TMI 1735 - DELHI HIGH COURT] the activities of the assessee have been held as charitable in nature - thus assessee is entitled to benefit of section 11 and 12 application of income has to be allowed in accordance with law. Whether depreciation can be claimed if assessee claimed the amount incurred on purchase of assets in earlier years as application of income - Held that:- As per the judgement in case of CIT vs. Rajasthan and Gujarati Charitable Foundation, Poona [2017 (12) TMI 1067 - SUPREME COURT] Supreme Court has rejected the contention of the Revenue of double benefit and allowed the depreciation on assets as application of income even though capital expenditure in respect of those assets was already claimed as application of income in earlier years - thus the ground of appeal by revenue is dismissed. Claim of accumulated funds under section 11(2) - Held that:- Since the activity of the assessee are charitable in nature and, thus, the claim of the assessee for carry forward under section 11(2) has been rightly allowed by the Ld. CIT(A), accordingly, we uphold the same.
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