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2018 (2) TMI 1593 - AT - Income TaxBenefit of exemption u/s 12AA - Addition of administrative expenses as inadmissible being 30% of the expenses claimed under this head - addition of claim for application of income towards capital assets - addition of allowed as concession against fee of students as no details of such students, to whom the concession was provided, had been filed - Held that:- We find that it is undisputed fact that the assessee is a registered trust and is also enjoying exemption u/s 12A of the Act. It is also undisputed fact that the benefit of exemption u/s 12A was not withdrawn. Learned CIT(A) after going through the detailed submissions of the assessee and after obtaining remand report of the Assessing Officer has rightly deleted the addition by holding that the registration u/s 12A was not cancelled. CIT(A) has categorically held that the books of account of the assessee were audited and necessary audit report in the prescribed form was filed with the return of income. He has also held that the Assessing Officer during the remand proceedings had not commended adversely on the written submissions filed by the assessee. As regards the adverse comments by the Assessing Officer regarding depreciation claimed by the assessee, we find that in the case of CIT vs. Krishi Utpadan Mandi Samiti [2013 (11) TMI 1062 - ALLAHABAD HIGH COURT], under similar facts and circumstances, has held that depreciation was allowable even if the entire capital expenditure was allowed as deduction. With effect from 01/04/2015 section 11(6) has been inserted by which it has been laid down that income of trust/society registered u/s 12A shall be determined without any deduction or allowance by way of depreciation or otherwise in respect of any asset, acquisition of which has been claimed as an application of income u/s 11 in the same or any other previous year. This amendment is prospective and is applicable from 01/04/2015 and before this many courts, as noted by learned CIT(A) in his order, have held that depreciation claim is allowable. The case of assessee relates to assessment year 2011-12 and therefore, this amendment will not be applicable in the case of the assessee. - Decided against revenue
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