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2021 (10) TMI 957 - AT - Income TaxDepreciation on account of application of income for charitable purposes - Double deduction - CIT(A) has given a factual finding that assessee has not claimed investment in fixed asset as application of the income in the year of purchase of fixed assets - HELD THAT:- CIT(DR) has not brought anything on record which could controvert the finding of the Ld. CIT(A), despite the impugned order which has been passed by the Ld. CIT(A) on 30/03/2017 - assessee has also referred to audited balance sheets and income and expenditure accounts of earlier years and submitted that investment in fixed assets was not claimed as application of the income in the year of investment. This fact has also not been controverted by the Learned Departmental Representative. In the circumstances, the assessee has claimed depreciation for the first time as application of the income and, therefore, claim of double deduction of the Assessing Officer is baseless and without any evidences, hence not justified. Also as per Rajasthan and Gujarati Charitable Foundation, Poona [2017 (12) TMI 1067 - SUPREME COURT] even if investment in capital asset has been claimed as application of the income, the assessee is entitled for depreciation as application of the income in subsequent years, prior to insertion of section 11(6) of the Act with effect from assessment year 2015-16. The instant case being of assessment year 2010-11, the assessee is eligible for depreciation as application of the income irrespective of the fact whether investment in fixed assets was claimed as application of the income or not. - Decided against revenue. Addition u/s 68 - AO found the donation in dispute as anonymous observing that donor companies are only paper companies - CIT-A deleted the addition - HELD THAT:- As the assessee has maintained name and address and other details, which have been made available to the Assessing Officer. In such circumstances, following the decision of the Tribunal in the case of Jai Maa Savitri Education Society [2021 (2) TMI 707 - ITAT DELHI] entioned above and the finding of the Assessing Officer in remand proceeding, we do not find any error in the order of the Ld. CIT(A) on the issue in dispute and accordingly, we uphold the same. The ground No. 2 of the appeal of the Revenue is accordingly dismissed Addition on account of transport activities - CIT(A) deleted the disallowance - HELD THAT:- We find that the Assessing Officer has made disallowance purely on estimate and on ad-hoc basis without pointing out any specific defects in vouchers of expenses maintained by the assessee, which is not permitted in law. Accordingly, we uphold the finding of the Ld. CIT(A) on the issue in dispute and dismiss the ground No. 3 of the appeal of the Revenue. Addition on account of surplus from hostel activity - CIT-A deleted the addition - as per assessee he was maintaining hostel facility for the college student studying with the assessee, which is mandatory requirement under Rules and Regulation of AICTE (i.e. regulatory authority for technical education) - HELD THAT:- As the assessee submitted that it has maintained separate books of account as required under the provisions of the Act and further the hostel facilities maintained for the students of the college belonging to the assessee society and the facility is not been extended to any student not studying in the college by the assessee. In such circumstances, the hostel activity has been maintained as part of the education activity. Further, after apportioning the common expenses, there is no surplus from hostel activity. DR could not controvert above submission of the learned Counsel of the assessee. In such circumstances, we do not find any error in the order of the learned CIT(A) - Decided against revenue.
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