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2017 (9) TMI 1031 - AT - Income TaxExemption u/s 11 - denial of claim because the assessee transferred the net profit for non-charitable purpose which is clear violation of section 11(1) and 11(1)(b) - Held that:- We have noted that assessee is just transferred the above money to the infrastructure development fund as well as general reserve fund to be used for the purpose of the object of the trust of the assessee society and not for any other object other than the object of the society. Therefore, the observation of the Ld. assessing officer to this extent is incorrect. Further more, the assessee has merely passed the accounting entries in books of accounts transferring from the excess of income over expenditure account to these 2 different accounts. Therefore according to us there is no infirmity in the order of the Ld. CIT (A) in holding that assessee has not applied the profit for noncharitable purposes. In the result ground No. 1 of the appeal of the revenue is dismissed. Allowance of the depreciation on fixed assets the cost of which has already been allowed to the assessee as application of funds originally - Held that:- Allowance of depreciation on assets on assessee trust allowed. No double deduction. See DDIT versus Indraprastha Cancer Society [2014 (11) TMI 733 - DELHI HIGH COURT ] Caution money unexplained - Held that:- The brief facts of the case is that assessee has received ₹ 3.27 lakhs. During the year on account of caution money which are held by the Ld. assessing officer as business. As the Ld. CIT appeal has already held that assessee is not carry on any business but carrying on activities of education covered under section 2 (15) of the income tax act, which is remained unchallenged the amount of caution fee is also part of the educational activities. Therefore, we do not find any infirmity in the order of the Ld. CIT (A) in holding that caution money is for the educational activities and part of that on which exemption cannot be denied. - Decided against revenue
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