TaxTMI 
TaxTMI 
2019 (6) TMI 293
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....atives of both the parties and perused the Orders of the authorities below. 3. Briefly the facts of the case are that assessee society is registered with the Registrar of Societies, U.P. and has also been granted Registration under section 12AA of the I.T. Act, 1961. Presently, the assessee society is running Educational Institution in the name & style "Graduate School of Business & Administration at Greater Noida". The institute is running PGDM courses. The assessee filed return of income declaring NIL income claiming exemption under section 11 of the I.T. Act, 1961. The A.O. disallowed claim of depreciation of Rs. 1,41,86,961/- considering it to be double deduction/notional application because acquisition of asset is taken as applicabl....
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....tion of asset is taken as application for charitable purposes, therefore, claim of depreciation would amount to double deduction. 7. After considering the rival submissions, we are of the view that issue is covered in favour of the assessee by the Judgment of the Hon'ble Supreme Court in the case of CIT vs. Rajasthan and Gujarat Charitable Foundation (supra), in which it was held that "the assessee is entitled to depreciation under section 32 of the I.T. Act on assets whose cost has been allowed as application to charitable purposes under section 11(1)(a) of the I.T. Act". We may also note that the Amendment in Section 11(6) of the I.T. Act has been brought by Finance Act, 2014, which becomes effective from A.Y. 2015-2016. Therefore, it ....
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..... In his written submissions, he has relied upon the decisions of the ITAT, Delhi G-Bench, Delhi in the case of Society for Educational Excellence, Ghaziabad. vs. DCIT, Central Circle, Ghaziabad in ITA.No.6957, 6960 and 3606/ Del/2017 (Assessment Years 2008-2009, 2009-2010 and 2010-2011), Dated 19.03.2018, in which it was held as under : "32. In view of this we are of the view that the hostel, mess facility and transport facility etc carried out by the society are incidental to the main object of the assessee trust of education and therefore, provisions of section 11(4A) of the Act do not apply to the assessee as it cannot be said that by running the hostels or transport facility for student its educational activities is a separate....
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....4 wherein it has been held that providing hostel to the students/staff working for the society's incidental to achieve the object of providing education, namely the object of the society. In view of this we are of the opinion that providing of hostel facilities and transport facilities to the student and staff member of the educational Institute cannot be considered as business activity but is subservient to the object of educational activities performed by the society. We are also supported by our view by the decision of the Hon'ble Allahabad High Court in IIT versus state of UP, (1976) 38 STC 428 (All) wherein question arose in Indian Institute of Technology v. State of U.P. (1976) 38 STC 428 (All) with respect to the vis....
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....ies surplus cannot be considered as business income of the assessee society which is mainly engaged in business activities and these activities are subservient to the main object of education of the trust. In the result 1 - 3 of the appeal of the assessee are allowed." 9. On the other hand, Ld. D.R. relied upon the Orders of the authorities below. 10. We have considered the rival submissions. Section 2(15) provides the definition of "Charitable Purposes" which includes relief of the poor, education, medical relief etc., Thus, 'Education' itself is considered as charitable activity. The assessee is admittedly granted registration under section 12AA of the I.T. Act and assessee is carrying on only educational activities. The as....
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....profit motive out of providing the same facility to the students. The authorities below have not pointed out that on providing hostel facility to the students of the assessee society, what business activity have been carried out by the assessee. The decisions relied upon by the Learned Counsel for the Assessee, squarely apply to the facts and circumstances of the case. Considering the history of the assessee as noted above, in the light of facts considered above, we are of the view that since assessee exist for educational purpose only and hostel facility provided by the assessee society is incidental to the main objectives of the assessee society for education only, therefore, the authorities below were not justified in considering it t....