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2018 (8) TMI 643 - AT - Income TaxExemption u/s 10(23C)(vi) r.w.s. 11 - application of income - refused to allow the assessee’s depreciation claim on the capital expenditure - invoking the provisions of sections 13(1)(c) & 13(1)(d) - honorarium payments made to specified person - Held that:- when the assessee makes huge profits year after year, the findings recorded by the lower authorities that the assessee is running a profitable venture, during the impugned years, is justified and hence the corresponding grounds of the assessee are dismissed for both the years. Further, there is a clear violation u/s. 11(1)(c)/11(1)(d) rw.s.11(5). Therefore, the provisions of Section 11 become in-operative and the surplus gained by the Trust for the year therefore needed to be brought to taxation and accordingly assessed the assessee’s income. When the assessee’s activities or the purposes are considered as existing for purposes of profit, its claim u/s 11 that it is existing for “charitable purposes” within the scope of section 2(15) of the Act also fails both the ays. Thus, when the assessee is not entitled for the benefit u/s 11, all its other claims u/s 11 are not allowable and hence they become academic and hence not dealt with .
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