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2019 (6) TMI 701 - AT - Income TaxExemption u/s 11(4A) - charitable activity u/s 2(15) or not? - as per AO held that hostel and transport facility provided to the students by assessee's Institute are separate businesses and are not covered in the definition of charitable purpose u/s 2(15) - since no separate books of accounts are maintained for this business, the assessee is not entitled for exemption u/s 11(4A) - HELD THAT:- The Hon’ble High Court in case of Mallikarjun School Society [2018 (2) TMI 1347 - UTTARAKHAND HIGH COURT] held that an educational institute will not cease to be one existing solely for educational purposes since the object is not to make profit. In present case also the assessee society will not ceased to exist as educational institute because it is providing hostel facility or transportation facility or mess facility, as it is an incidental to the education purpose of the assessee society. Therefore, in view of the Hon’ble Uttarakhand High Court decision in case of Mallikarjun School Society (supra) and orders of the co-ordinate bench in case of Delhi Public School Gaziabad [2018 (5) TMI 1482 - ITAT DELHI] the hostel facility provided by the assessee society is not in the nature of business and is incidental to the attainment of the main object of the providing education to students. Therefore, provisions of Section 11(4A) will not be applicable to the assessee - decided in favour of assessee Depreciation claim of assessee trust - The assessee has provided the depreciation in the income and expenditure in conformity with the Income Tax Rules applicable to the allowance of depreciation of fixed assets. Various decision of the Hon’ble Apex Court and Hon’ble High Courts relied upon by the Ld. AR highlights the proposition that depreciation should be allowed, even if, the purchase of assets have been claimed by the trust towards application of income - Decided in favour of assessee
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