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2020 (5) TMI 655 - AT - Income TaxExemption u/s 11 - hostel receipt to be treated as business income of the trust in absence of not maintaining separate books of accounts as per section 11 (4A) - assessee has not maintained separate books of account of hostel activity as assessee is running a hostel and every year surplus is generated - HELD THAT:- In this case , it is not denied that student who pays the hostel fees do not get education in classrooms - Assessee is running educational institutes , income from which has been accepted by ld AO himself as falling u/s 2 (15 ) of the act. We direct the learned assessing officer to not to treat the excess as taxable income on account of hostel receipts under section 11 (4A) of The Income Tax Act. As hostel fee income is subservient to the main object of the education and therefore the learned assessing officer is directed to treat the same as not a business income but income derived from the charitable activities of "education". - Decided in favour of assessee. Depreciation to assessee trust - additional ground - double deduction - HELD THAT:- The assessment year in appeal before us is assessment year 2011 – 12, which is prior to assessment year 2015 – 16 where from the amendment has been made denying the double deduction. Therefore, for this year the assessee is entitled to the depreciation allowance. Accordingly, additional ground raised by the assessee is allowed.
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