Advancing money for acquiring land and construction of building. Delay in execution of sale deed. Advance of money to employee trust. There is no violation. Denial of exemption is held to be not valid. The assessee was entitled to claim the cost of the asset as application of income under section 11. The assessee was eligible for depreciation under section 32 even though the cost of asset was allowed as application of income. (AY. 2011-12, 2012-13)
ITO (OSD) v. Shrine Vailankanni Senior Secondary School (2019) 70 ITR 345 (Chennai)(Trib.)
S. 13 : Denial of exemption-Trust or institution-Investment restrictions–Advancing money for acquiring land and construction of building–Delay in execution of sale deed-Advance of money to employee trust-No violation-Denial of exemption is held to be not valid–Application of income-entitle to depreciation though the cost of asset was allowed as application of income. [S. 11, 12AA, 13(1)(d), 32]