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2015 (11) TMI 988 - ITAT DELHIEntitlement for depreciation on assets - CIT(A) allowed the claim - as per revenue assessee has already claimed as application of income or that the complete amount spent on purchase of the said assets and as such correctly claimed 100% deduction in the initial stage itself and by doing so, Ld. CIT(A) has in fact granted double benefit to the assessee - Held that:- Keeping in view the fact that the income of the appellant is exempt u/s 11 of the Act and when certain assets purchased by the assessee was claimed to be the part of application of income for charitable purposes, and the same has been sold, the income thereof has been disclosed, the addition cannot be made for the reason that the application of income is not computation of income and the provisions of calculating the income applied for charitable purpose is attracted only after the income eligible for exemption is determined. Since the entire amount of ₹ 70,395/- used for purchasing fixed assets, is application of income for charitable purpose, the income earned on the sale of such assets is part of income even for taxation purposes. So, Ld. CIT(A) has rightly deleted the addition of ₹ 70,395/- - Decided in favour of assessee. Addition made u/s 68 in respect of corpus donation - Held that:- When the assessee has provided the complete details of corpus donors in the form of individual confirmations from such donors, their names and addresses as well as PAN, it was for the A.O. to confirm the same. Merely issuance of notices by the A.O. to the corpus donors u/s 133(6) of the Act is not enough to discharge the onus. The A.O. has not even disputed the existence, genuineness and creditworthiness of the said donors nor he has disputed the individual confirmations filed by them. It appears that the A.O. has not made any effort whatsoever to verify the genuineness of the corpus donors as per letters filed by the assessee and arbitrarily proceeded to add the corpus donation to the income of the assessee. So, consequently, the amount spent by the assessee towards charitable cause, during the year under consideration, is more than the income earned if the allegation of the A.O. is taken as correct. So, under these circumstances, no addition can be made u/s 11(1A) of the Act. Even otherwise, when the amount of ₹ 25,32,000/- has been added in the income again, making addition u/s 68 of the Act would amount to double addition/taxation. When the corpus donations received by the assessee is specifically exempted u/s 11(1D) of the Act, Ld. CIT(A) has rightly deleted the addition. - Decided in favour of assessee.
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