Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2019 (6) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (6) TMI 653 - AT - Income TaxExemption u/s 11 - Addition treating the receipt from hostel and transportation facility in the nature of business activity and not allowing the benefit of section 11 - disallowance of claim of depreciation - HELD THAT:- Reasoning of the AO to held that fees received for hostel facilities and transportation charges is a separate and distinct activities from education cannot be sustained, because these activities are incidental to the main objects of the trust, i.e., carrying out educational activities and it cannot be reckoned as a separate business activities for which separate books of accounts is required to be maintained. The hostel facility and transportation of students is inextricably linked with the running of school and is part of overall educational activity. In the case of Karnataka Lingayat Education Society [2015 (5) TMI 260 - KARNATAKA HIGH COURT] held that providing the hostel to the students and the staff working for the society is incidental to achieve the object of providing education which is object of the society. This issue has also been considered by the Tribunal in assessee’s own case [2019 (1) TMI 794 - ITAT DELHI] . Respectfully following the same we decide in this issue in favour of the assessee and hold that these activities are incidental to the attainment of the main object of the trust of the education and consequently assessee is entitled for benefit u/s 11. Disallowance of depreciation - HELD THAT:- This issuer stands covered in favour of the assessee by the judgment of Hon’ble High Court [2017 (3) TMI 896 - ALLAHABAD HIGH COURT] .
|