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2021 (12) TMI 1125 - AT - Income TaxExemption u/s 11 - As per AO activities carried out by the assessee company are in the nature of ‘advancement of other general public utility’ in the nature of trade/commerce/business and therefore, the activities carried out by the assessee cannot be reckoned as attributable to ‘charitable purpose’ within the meaning to Section 2(15) - HELD THAT:- The Coordinate Bench in assessee’s own case for A.Y. 2009-10 to 2011-12 held that the assessee company cannot be said to be conducting affairs solely on commercial lines with a motive to earn profit and consequently proviso to Section 2(15) of the Act does not trigger in the case of the assessee. Such view of the Coordinate Bench has been ultimately affirmed by the Hon’ble Jurisdictional High Court in the case of CIT vs. Gujarat Industrial Development Corporation [2017 (7) TMI 811 - GUJARAT HIGH COURT] - as assessee was not involved in the activities in the spirit of commercial accommodation and therefore falls within the ambit of definition of ‘charitable purpose’ contemplated under s.2(15) of the Act. In view ofthe foregoing, we find that the relief sought by the assessee to the extent that the activities carried on by the assessee should be recognized to be of charitable nature requires to be endorsed. - Decided in favour of assessee. Addition on account of deemed rent - deemed rent from various fact/unoccupied plots/shade added to the total income of the assessee - HELD THAT:- Considering the entire aspect of the matter we find that when the appellant has an exempt entity Chapter-3 of the matter would be applicable in its case and not the provision of Chapter-4 of the Act. Therefore, the addition of deemed rent would fall under the head income from house property under Chapter-4 of the Act and therefore, the addition is not sustainable. Considering this aspect the order passed by the Ld. CIT(A) in deleting addition in our considered view is just and proper and so as to warrant interference. Depreciation as per normal commercial principles and rule of accountancy - AO is required to re-examine the issue afresh in accordance with law considering the assessee as a Charitable Institution.
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