2014 (5) TMI 1173

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....Vijayaraghavan, Advocate For the Respondent- Shri S. Das Gupta, IRS, JCIT ORDER PER Dr. O.K. NARAYANAN, VICE-PRESIDENT This appeal filed by the assessee relates to the assessment year 2010 11. The appeal is directed against the order of the Commissioner of Income-tax(Appeals)-VII at Chennai, dated 30/1/2014. The appeal arises out of the assessment completed under sec.143(3) of the Inco....

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....ec.13(1)(c), which makes the assessee disentitled to exemption under sec.11. He accordingly, denied the exemption under sec.11 and computed the taxable income by deducting the revenue expenditure excluding depreciation from the gross receipts. He, thus, determined a total taxable income of ` 6,11,56,935/-. 5. The assessment was carried in first appeal. The Commissioner of Income-tax(Appeals) di....

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....or established before the commencement of this Act, to any use or application, whether directly or indirectly, of any part of such income or any property of the trust or institution for the benefit of any person referred to in sub-sec.(3), if such use or application is by way of compliance with a mandatory term of the trust or a mandatory rule governing the institution. 9. In the present case, ....

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....on. 11. Regarding the issue of depreciation, we rely on the order of Chennai 'A' Bench of the ITAT rendered in the case of M/s. Mohamed Sathak Trust dated 30th October, 2013 in ITA Nos.1436 & 2159/Mds/2012, wherein the Tribunal has held as follows: "Computing of income for arriving at normal income of the assessee and examining the application of funds for charitable purposes are two d....