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2023 (7) TMI 273 - AT - Income TaxExemption u/s 11 and 12 - assessee cannot be considered to cover by the proviso to section 2(15) of the Act and cannot withdraw the claim of exemption u/s. 11 - HELD THAT:- The Hon’ble Supreme Court Judgment in Civil Appeal [2022 (10) TMI 948 - SUPREME COURT] which has settled the issue by dismissing the Revenue’s appeal. Hon’ble Supreme Court in the very same case of ACIT vs. Ahmedabad Urban Development Authority reported [2022 (11) TMI 255 - SUPREME COURT] wherein it has been clearly held that the Revenues Appeals are dismissed as far as statutory Corporations/Boards Rate of depreciation on the basis of normal commercial principles & not as per section 32 of the Act not applicable to exempt person - HELD THAT:- The Co-ordinate Bench of the Tribunal held that the fixed assets served some special purpose of the working of the assessee and thereby considered as ‘plant and machinery’ in the working process of the assessee. CIT(A) has not justified in holding that the income of exempt person has to be calculated on the basis of normal commercial principles and by Rule of accountancy. We hold that the assessee is entitled to claim the depreciation as ‘plant and machinery’ as the assessee in promoting public objects which are activities in the nature of trade, commerce or business but without commercial motive. Ground raised by the Assessee allowed. Accumulation of income - whether application of income shall precede accumulation by directing A.O. to allow accumulation u/s. 11(1)(a) from income remaining after deducting amount applied for the objects of the assessee trust - HELD THAT:- As relying on Gnyan Dham Vapi Charitable Trust [2020 (10) TMI 238 - ITAT AHMEDABAD] and Maharshi Karve Stree Shikshan Samstha Karvenagar [2019 (1) TMI 1260 - ITAT PUNE] we hereby set aside the order passed by the Ld. CIT(A) and held that when application of income is more than receipts of year, excess application of income i.e., expenditure in the hands of the assessee can be carried forward to succeeding Year. Ground raised by the Assessee allowed.
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