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2018 (12) TMI 915 - AT - Income TaxCharitable activity - exemption u/s 11 - whether activities of the assessee did not fall within the definition of preservation of environment as it was inserted in section 2(15) with effect from 01/04/2009 - Held that:- As regards the contention of Revenue that activities of the assessee do not fall within the definition of preservation of environment, we find that learned CIT(A), after relying on the decision of Hon'ble I.T.A.T., as upheld by Hon'ble Supreme Court, has held that the activities of the assessee are charitable in nature. Whether the assessee was granted 12A registration for preservation, supervision and development of forest and not for the exploitation of forest produce? - Held that:- Once the activities of appellant are held to be in the nature of "Preservation of environment" therefore these activities are held to be Charitable in Nature and the same cannot be categorized partly as charitable and partly as non-charitable as they are covered within the objects for which it was incorporated and is functioning on those lines. Addition on account of prior period expenses - Held that:- There being no change in rate of taxes, the amount incurred under the said head has to be allowed in the AY under consideration as the said expenses were determined and crystallized during the AY under consideration. Accordingly, the disallowance made by the AO under the head Prior Period expenses is hereby deleted. The said expenses are allowed for the reason that these expenses were determined and crystallized only during the AY under consideration. - Decided against revenue
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