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2022 (6) TMI 1065 - AT - Income TaxExemption u/s 11 - grants were received by the assessee-trust from the Government of Gujarat - Claim denied as assessee is clearly falling under the first proviso of section 2(15) - as argued activities of the assessee are charitable in nature and therefore the benefit of corpus fund will be eligible - HELD THAT:- As decided in own case [2022 (3) TMI 1192 - ITAT AHMEDABAD] in the case of CIT Vs. Gujarat Safai Kamdar Vikas Nigam (2011 (5) TMI 815 - GUJARAT HIGH COURT), citied by the learned Counsel for the assessee, the grants were received by the assessee-trust from the Government of Gujarat under a similar scheme envisaged for implementation of certain Government programs and although it was not expressly made clear that the grants were being made available to form the corpus of the Trust and to be applied for such purpose, it was held by the Hon'ble jurisdictional High Court after considering the entire purport of the scheme that the grants made available to the assessee-trust for implementing the scheme in a particular manner cannot be treated as income of the assessee-trust. In our opinion, the ratio of this decision of Hon'ble Gujarat High Court is squarely applicable to the facts of the present case and respectfully following the same, we uphold the impugned order of the learned CIT(A) a lowing the claim of the assessee that the government grant of Rs. 6,18,22,000/- received by the assessee-trust towards specific projects to achieve objects of the Trust constituted its Corpus Fund which was not chargeable to tax. - Appeal of revenue dismissed. Treating the capital expenditure as application of income - HELD THAT:- As decided in own case [2022 (3) TMI 1192 - ITAT AHMEDABAD] assessee is entitled to depreciation under Section 32 of the Act on assets whose cost has been allowed as application of income for charitable purpose under Section 11(1)(a) of the Act - Since the Assessment Year involved in the present year is AY 2014-15, we respectfully follow the decision of the Hon’ble Supreme Court in the case of CIT Vs. Rajasthan & Gujarati Charitable Foundation Poona.[2017 (12) TMI 1067 - SUPREME COURT] and direct the Assessing Officer to allow the claim of the assessee for deduction on depreciation. - Decided in favour of assessee.
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