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2018 (8) TMI 1707 - AT - Income TaxDenial of claim for exemption u/s 11 - Held that:- The claim of the assessee u/s 11 of the I.T. Act, 1961 was declined in the year of 1989- 90 & 1990-91 by revenue which was allowed by the ITAT in the assessee’s own case. Since then there was no change in the objects of the assessee till date. Merely came into existence of provision of Section 2(15) of the Act nowhere makes the object of the Assessee commercial in nature. Instances of business and profession are also not on record. Taking into account all the facts and circumstances of the case, we are of the view that the CIT(A) has wrongly denied the claim of the assessee u/s 11 of the Act which is liable to be allowed in the interest of justice. Accordingly, we order, The issue no. 1 and 4 are decided in favour of the assessee. Interest on deposit - Held that:- The said income doesn’t falls within the principle of mutuality which is not liable to be allowable in view of the law settled Bangalore Club Vs. CIT [2013 (1) TMI 343 - SUPREME COURT]. However, the appellant stated that the said interest income has already been offered to tax in the return of income for the A.Y.2011.12. Disallowance of capital expenditure incurred by the appellant as application of income for the objects of the trust - Held that:- The assessee raised the exemption u/s 11 of the Act and also claimed the capital expenditure incurred for fix assets to the tune of ₹ 15,000/-. AO disallowed the same on the ground of claim of depreciation on the said amount. There is no claim of depreciation. Since there is no plausible reason on record to decline the claim of the assessee, therefore, we set aside the finding of the CIT(A) on this issue and restored this issue before the AO to decide the issue afresh in accordance with law.
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