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2019 (1) TMI 92 - AT - Income TaxCharitable activity - Entitlement to exemption u/s 11 and 12 denied - transport and hostel facilities surplus considered as business income of the assessee society - Held that:- Respectfully following the decision of the coordinate bench in case of Krishna educational society vs. Additional Commissioner Of Income Tax [2017 (9) TMI 1030 - ITAT DELHI] as held transport and hostel facilities surplus cannot be considered as business income of the assessee society which is mainly engaged in business activities and these activities are subservient to the main object of education of the trust. We allow the appeal of the assessee and hold that assessee is entitled to exemption under section 11 and 12 of the income tax act with respect to the hostel and transport facilities provided to the students of the educational society. In the result, the appeal of the assessee is allowed as per ground number three raised before us. As we have already held that assessee is entitled to exemption under section 11 and 12 of the act and is not carrying on the business activities when it receives the hostel fees and transportation facilities from the students of the educational Inst, therefore, we reverse the order of the learned commissioner of income tax appeals. Further it is not required to adjudicate on the enhancement made by the learned commissioner of income tax appeals as the basis of the enhancement itself has been negated by us. - Decided in favour of assessee
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