TMI Blog2015 (11) TMI 1863X X X X Extracts X X X X X X X X Extracts X X X X ..... ity so as to grant exemption u/s.11 of the Act. In view of the binding precedent relied on by the ld. DR, we are of the opinion that the assessee is not carrying on any charitable activity and cannot be granted exemption u/s.11 of the Act. However, we have to make it clear that the claim of depreciation to be granted on written down value of the assets. In other words, if the assessee has already claimed capital expenditure on acquisition of assets as application of income in earlier years and the value of the assets on which depreciation claimed has been fully allowed as expenditure or application in the earlier years that cannot be any claim of depreciation once again. The present claim of depreciation cannot be a double deduction over ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... but failed to apply the 1st and 2nd proviso to Section 2 (15) and to that extent his order is per in curium as it is passed in complete disregard of these two provisos . 2.2 The Id CIT(A) erred in holding that the assessee is eligible for exemption u/s 11, when the assessee has business income of ₹ 2,49,15,210/-, which is covered under general public utility . 2.3 Reliance is placed on the decision of Hon'ble ITAT Panaji In the case of Entertainment Society of Goa Vs CIT(2013) 34 Taxmann.com 210, wherein it has held that :- The words used in the proviso are carrying on of any activity in the nature of trade, commerce or business not the words 'carrying on trade commerce or business'. Using of the words 'a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 9.2011. The case was selected for scrutiny and notice u/s.143(2) of the Act was issued accordingly. The Assessing Officer during the course of scrutiny proceedings found that the assessee has been running a printing press and deriving its income from the business activity of printing. He observed that the assessee also derived income through sale of books and no charitable activities were performed. The assessee was asked for the AO to show cause why the amended provisions of sec.2(15) of the Act should not be applied as the activities are in the nature of trade, commerce or business. The assessee contended that its activities are covered by the main limb of definition u/s.2(15) of the Act namely education . The Assessing Officer reject th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pulation is on the poverty line. The downtrodden people such as agriculture labourers, daily wage earners in urban areas, Industrial workers, etc. are the target groups termed as toiling masses by the assessee trust. The assessee is trying to improve their lot through the medium of newspaper Theekkathir . The activities of the assessee conform to the objects of the trust. Though the activities of the assessee are not exactly 'education', they can be covered definitely under advancement of any other object of general public utility. Therefore, the CIT(Appeals) observed that the assessee is entitled to exemption u/s 11 of the Act. 5.2 Regarding the disallowance of depreciation, the CIT(Appeals) observed that the concept of commerc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ctivity and cannot be granted exemption u/s.11 of the Act. However, we have to make it clear that the claim of depreciation to be granted on written down value of the assets. In other words, if the assessee has already claimed capital expenditure on acquisition of assets as application of income in earlier years and the value of the assets on which depreciation claimed has been fully allowed as expenditure or application in the earlier years that cannot be any claim of depreciation once again. The present claim of depreciation cannot be a double deduction over and above the fully value of the assets, if it was granted as application of income in earlier years. With these observations, we allow the Revenue s appeal. 7. Coming to the cross ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
