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2019 (7) TMI 425 - AT - Income TaxExemption u/s 11 - Depreciation claim of assessee trust - HELD THAT:- Since the question of law involved in this issue is no longer res Integra and in view of the decisions in the cases of Indraprastha Cancer Society [2014 (11) TMI 733 - DELHI HIGH COURT] and Rajasthan and Gujarati Charitable Foundation, Poona [2017 (12) TMI 1067 - SUPREME COURT] we are of the considered opinion that there is nothing illegality are regularity in the findings returned by the Ld. CIT(A) while deleting the addition made on account of depreciation - Decided in favour of assessee Surplus of hostel receipts - assessee has been running the hostel along with the educational institution, which activity AO found to be a business activity and not charitable activity within the definition of section 2 (15) - HELD THAT:- As following the decision of the Hon’ble Karnataka High Court in the case of Karnataka Lingayat education society [2015 (5) TMI 260 - KARNATAKA HIGH COURT] we are of the considered opinion that the findings of the authorities below that the running of hostel facility amounts to business activity or that the surplus generated has to be considered as business income, cannot be sustained. We therefore allow the claim of the assessee and direct the assessing officer to delete the addition made on this score. Disallowance of expenses incurred on a travel by the top official and office bearer of the society - CIT(A) confirmed the findings of AO to the effect that the travel by chartered flight is definitely unreasonable expenditure particularly by an assessee who enjoys tax benefit for charitable activities - HELD THAT:- Neither the impugned order nor the assessment order show that the assessee had justified the claim with any evidence to show the purpose of travel or the circumstances forcing the official of the assessee to travel by chartered flight. For want of evidence we find it difficult to take a different view from the view taken by the authorities below. We therefore confirm the same and dismiss the relevant ground of assessee’s appeal. As contended on behalf of the assessee that the 85% of the total receipt of ₹ 49,37,48,941/- for applicability of section 11 comes only ₹ 41,96,86,599/- whereas the total sum utilised by the assessee was ₹ 48,01,53,736/- much more than the statutory requirement, the disallowance of this travel expense does not impact the assessee at all. Appeal of the assessee is allowed in part.
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