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TMI Blog2017 (10) TMI 1592X X X X Extracts X X X X X X X X Extracts X X X X ..... ities of the assessee of running hostel/ canteen and providing Auditorium and Conference Hall on hire in lieu of fee to everyone and was not restricted to members only, was purely commercial in nature and hence, 1st proviso to Section 2(15) of the Income Tax Act, 1961 is applicable in this case. 2. On the facts and in the circumstances of the case and in law, the Ld. CIT(A) has erred in allowing the claim of depreciation of Rs. 39,60,948/- to the assessee ignoring the fact that the assessee had claimed the amount incurred on purchase of assets in earlier years as application of income, on which depreciation has been claimed now and further allowance of depreciation will be tantamount to double deduction. 3. On the facts and in the cir ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... facilities on hire on day to day basis to all types of customers by running hostel / canteen and giving Auditorium and Conference Hall on hire on commercial lines was considered to satisfy the requirements of running a business on commercial lines. The AO further observed that considering the main heads of income and the main heads of expenditure the activities attracted Amendment in Section 2(15) of the Income Tax Act applicable w.e.f. 2009-10 assessment year onwards. In view thereof the deduction claimed under section 11 of the Act was denied and the net taxable income of Rs. 1,42,27,701/- computed u/s. 143(3) of the Act vide order dated 10.3.2015. Against the assessment order, assessee appealed before the Ld. CIT(A)-40, New Delhi, who vi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... come tax Act by the AO. (ii) Disallowance of depreciation claimed by the assessee 6.1 We note that both the issues are covered by the order of Tribunal in the assessee's own case for A.Y. 2009-10, dated 23.08.2013 in ITA No. 5502/Del/2012 (enclosed at PB 133-163), holding that the assessee is eligible for exemption u/s 11 of the Act in Page 26-31 in Para 6.4 to 8 (PB 158-160) and allowing the claim of depreciation in Page 29-31 in Para 7 (PB 161-163). There were similar denial of exemption u/s. 11(1) for the AY 2010-11 & 2011- 12 but the same were allowed by the Ld. CIT(A)-XXI, New Delhi (old) following the order of the Tribunal for the AY 2009-10, as aforesaid. We further note that AO has again invoked the mischief of proviso of sec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the preceding years. Therefore, the AO is not justified to deny the exemption u/s. 11(1) as the assessee is involved in the charitable work of promoting the welfare and cause of the youth. In our opinion, the issues raised in the present appeal is squarely covered by the order of the Ld. CIT(A) for AY 2009-10, ITAT decision for 2009-10 & 2011-12 as well as Hon'ble Delhi High Court's decision for AY 2011- 12, as aforesaid. Therefore, respectfully following the precedents, as aforesaid, we are of the considered opinion, the Ld. CIT(A) has rightly directed the AO to allow the exemption u/s. 11(1) of the Act to the assessee with all the consequential benefits, which does not need any interference on our part, hence, we affirm the impugned orde ..... X X X X Extracts X X X X X X X X Extracts X X X X
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