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2022 (8) TMI 1034 - AT - Income TaxTaxability of amount received for specific purpose - contributions received treated as income u/s. 2(24)(iia) as assessee is not registered u/s. 12A - HELD THAT:- The admitted facts are that the assessee has received voluntary contribution towards corpus for the construction of building and for plantation expenses - Disclosure was also rightly made while filing the return of income for the AY 2019-20. Revenue Authorities have not disputed the contributions received but denied the exemption only due to the fact that the assessee is not registered u/s. 12A - observation of the CIT(A) that the assessee is not registered under any Law either as a Society or as a Trust is not factually correct - AR has produced a copy of the Registration Certificate duly registering the assessee-society under the Societies Registration Act vide Registration No.464 of 1995 - contributions received for a specific purpose cannot be treated as income u/s. 2(24)(iia) of the Act. Accordingly, we set-aside the order of the Ld. CIT(A) on Grounds no.3 and 4 raised by the assessee and these grounds raised by the assessee are allowed. Depreciation and bank charges on the basis that the assessee is not entitled to the benefit of section 32 - We find that since the asset has not been claimed as a deduction or exemption in the same year or in any previous year, the depreciation claimed by the assessee should be allowed as expenditure u/s. 32 of the Act. Therefore, we are of the considered view that the assessee is eligible to claim depreciation and bank charges as revenue expenditure and allow the same. Accordingly, Ground raised by the assessee is allowed.
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