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2020 (8) TMI 194 - AT - Income TaxExemption u/s 11 - Charitable activity u/s 2(15) - assessee trust was engaged in urban development and town planning - AO was of the view that the assessee was carrying out the activities of “advancement of other general public utility” in the nature of trade/commerce/business, therefore, the provision of section 2(15) r.w. proviso 1 & 2 were applied to the case - HELD THAT:- As decided in Ahmedabad Urban Development Authority [2017 (5) TMI 1468 - GUJARAT HIGH COURT] Object and purpose for which the assesses is established / constituted under the provisions of the Gujarat Town Planning Act and collection of fees and cess is incidental to the object and purpose of the Act, even the case would not fall under second part of proviso to Sect/on 2(15). Assessee is eligible to claim exemption/s. 11 of the Act as proviso of section 2(15) are not applicable in the case of the assessee. Carrying forward of excess capital expenditure of earlier years against the income of subsequent year - carry forward the depreciation as well - correctness of decision of Id. CIT(A) of allowing the benefit of the carrying forward - HELD THAT:- Gone through the material on record and it is noticed that ld. CIT(A) has placed reliance on decision of Shri Plot Shwetambar Murtipujak Jain Mandal 1993 (11) TMI 17 - GUJARAT HIGH COURT wherein it is held that excess of expenditure over the income would be allowed to be carried forward to be set off against the future income. CIT(A) has also placed reliance on the decision of CIT vs. Rajathan Gujarat Charitable Trust, Pune 2017 (12) TMI 1067 - SUPREME COURT wherein it is held that once the assessee is allowed depreciation, he shall be entitled to carry forward the depreciation as well. In the light of the above facts/findings of the ld. CIT(A) and the decision of Hon’ble Supreme Court in the Subros Education Society 2018 (4) TMI 1622 - SC ORDER as referred by ld. counsel, we do not find any infirmity in the decision of ld. CIT(A). - Decided against revenue.
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