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2019 (8) TMI 168 - DELHI HIGH COURTExemption u/s 11 and 12 - Whether assessee involved in business activities and was conducting no ‘charitable activity’? - HELD THAT:- ITAT noticed that there was no change in the functions of the Assessee from earlier and it’s objects were never disputed by the Revenue authorities at any stage. It was held that the Revenue failed to establish that the activities carried out by the Assessee were contrary to its objects and functions. It was unable to be established by the Revenue on facts that the Assessee was carrying on commercial activity. In the earlier AYs, this issue had been decided against the Revenue as noticed by the ‘CIT (A)’ in his order dated 28th February 2011 for AY 2007-08. Consequently, the Court declines to frame any question on this issue. Deemed application of income u/s 11(1), Explanation 2 - requisite intimation not filed within the time period stipulated - HELD THAT: - The Court finds that in Association of Corporation and Apex Societies of Handlooms v. Assistant DIT, [2013 (1) TMI 317 - DELHI HIGH COURT] it was held by this Court that intimation in Form-10 for the purposes of claiming the benefit of the Section 11 could be furnished by the Assessee even during the assessment proceedings. On the facts of the present case, although the Assessee did not give the intimation at the time of filing the original returns, admittedly, the intimation was enclosed with the revised return filed by the Assessee. The Court accordingly does not find any error having been committed by the ITAT in holding this issue in favour of the Assessee. Depreciation to trust - assets, the full cost of which was already allowed as application of income in earlier years, even though allowing the same could lead to a situation where amount of depreciation would exceed the purchase value of the assets - HELD THAT:- As pointed out by Mr. Rahul Chaudhary, learned counsel appearing for the Assessee on advance notice, that this issue is no longer res integra in view of the decision of the Supreme Court in CIT v. Rajasthan & Gujarati Charitable Foundation Poona [2017 (12) TMI 1067 - SUPREME COURT] The ITAT too followed the said decision and decided the issue against the Revenue. Whether an amount received as advance was in fact utilized by the Assessee for charitable purpose? - HELD THAT:- Here again on facts the ITAT has found in favour of the Assessee, which finding has not been shown to be perverse. The Court accordingly declines to frame such issue as raised by the Revenue.
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