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2017 (7) TMI 535 - ITAT CHENNAIExemption claimed by the assessee under Section 11 - Held that:- The activity of the assessee cannot be considered to be business activity. It was further found that the assessee is not providing any services to any trade or commerce or industry. Therefore, the proviso to Section 2(15) of the Act is not applicable to the assessee. Tribunal is of the considered opinion that the assessee is entitled for exemption under Section 11 of the Act. Accordingly, the orders of the lower authorities are set aside and the Assessing Officer is directed to grant exemption under Section 11 of the Act. Depreciation in respect of the assets, the cost of which was already allowed as application of income under Section 11 - Held that:- Depreciation under Section 32 of the Act falls under Chapter IV of the Act which provides for computation of total income. Section 11 of the Act falls under Chapter III of the Act which deals with income which does not form part of total income. Therefore, this Tribunal found that provisions of Section 32 of the Act cannot override the provisions of Section 11 of the Act. In other words, the provisions of Section 11 which falls under Chapter III would override the provisions of Section 32 of the Act which provides for depreciation which falls under Chapter IV of the Act. The assessee is not eligible for depreciation in respect of the assets, the cost of which has already been allowed as application of income under Section 11 of the Act. Therefore, this Tribunal do not find any reason to interfere with the order of the lower authority and accordingly the same is confirmed. See The Music Academy Madras Versus The Deputy Director of Income Tax (Exemptions) , Chennai [2016 (5) TMI 165 - ITAT CHENNAI ]
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