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2020 (4) TMI 393 - AT - Income TaxExemption u/s 11 - Deduction u/s 10(23C) - allowability of depreciation - scrutiny u/s 143(3) - HELD THAT:- CIT(A) has applied the provisions of section 10(23C) correctly and allowed the exemption and given a finding that the taxable income would be Rs.Nil since, the assessee had applied the income to the extent of 85% as required u/s 10(23C) - Hon’ble Supreme Court in the case of CIT Vs. Rajasthan and Gujarathi Charitable Foundation Poona [2017 (12) TMI 1067 - SUPREME COURT] held that the depreciation allowable on the assets treated as application of income also in the years in which the assets were acquired. As on the date of passing the order of the Ld.CIT(A), the decision of Hon’ble Supreme Court is available, hence, the Ld.CIT(A) is bound to consider the decision of Hon’ble Apex court also. The department could not find any mistake in the order of the Ld.CIT(A) except arguing that the Ld.CIT(A) has travelled beyond his jurisdiction while deciding the consequential order. We observe from the consequential order that since the AO has failed to examine the claim of the assessee for exemption u/s 10(23C), 11, 12 and 13 and the Ld.CIT(A) has rightly examined the issue and allowed eligible exemption which is within the jurisdiction of the CIT(A). Hence, we do not find any reason to interfere with the order of the Ld.CIT(A) and the same is upheld. The appeal of the revenue is dismissed.
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