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2018 (4) TMI 1066 - AT - Income TaxReopening of assessment under Section 147 - Set off excess application brought forward - Held that:- Identical question was considered in TANMAC India v. DCIT [2017 (1) TMI 122 - MADRAS HIGH COURT] as held when the entire material was available before the Assessing Officer, in the absence of any new material, the Assessing Officer cannot reopen the assessment under Section 147 of the Act. Section 147 of the Act is not to extend the period of limitation provided for completing the assessment. Unless and until a new material was found on record by the Assessing Officer, the completed assessment cannot be reopened on the basis of very same material available on record. - Decided in favour of assessee Depreciation of certain assets the cost of which was allowed as application of income under Section 11 of the Act - Held that:- Apex Court in the case of CIT v. Rajasthan And Gujarati Charitable Foundation Poona [2017 (12) TMI 1067 - SUPREME COURT] found that the assessee is eligible for depreciation even though the cost of the asset was allowed as application of income under Section 11 of the Act. This Tribunal is unable to uphold the orders of the authorities below. Assessing Officer is directed to allow depreciation. Assessee is eligible for carry forward the excess application of income against the shortfall in the succeeding year. See case of Matriseva Trust (1999 (3) TMI 34 - MADRAS High Court) Eligible for exemption under Section 11 - Held that:- Charitable activity cannot be carried on without money. In other words, to carry out the object of the trust, the assessee needs money and income. Therefore, it is for the assessee to generate income from the property held under trust. When the assessee exploited the land by putting up a construction and letting out the same with an intention to generate income for the purpose of carrying on the object of the trust, this Tribunal is of the considered opinion that the construction of such building and letting out the same cannot be considered to be a commercial activity. Therefore, the CIT(Appeals) has rightly found that the assessee is eligible for exemption under Section 11 of the Act Validity of reopening of assessment - Held that:- AO found that the assessee applied the income out of donation. But the information regarding donation was not available before the Assessing Officer. Moreover, consequent to the order of the High Court, the Principal Commissioner revised the order of the Assessing Officer. In those circumstances, this Tribunal is of the considered opinion that the Assessing Officer has rightly reopened the assessment. Therefore, this Tribunal do not find any reason to interfere with the order of the lower authority for reopening the assessment under Section 147 Amount accumulated under Section 11(2) added back under Section 11(3) - Held that:- When the assessee accumulated income for specific purpose, and disclosing the same in Form 10B but such accumulated income was not used for the purpose for which the same was accumulated, this Tribunal is of the considered opinion that the assessee is not eligible for exemption in respect of such accumulated income Assessee made donation in respect of the trust which was granted approval under Section 80G from and out of current profit. When the assessee has advanced money to the trust which has similar object and approved under Section 80G of the Act, from and out of current profit, this Tribunal is of the considered opinion that the assessee is eligible for exemption under Section 11 of the Act. Assessee is eligible for depreciation even on the asset on which the cost was allowed as application of income under Section 11
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