TMI Blog2017 (11) TMI 1936X X X X Extracts X X X X X X X X Extracts X X X X ..... 2 (10) TMI 786 - ITAT, DELHI ] and case of Indraprastha Cancer Society, Abul Kalam Azad Islamic Awakening [ 2014 (11) TMI 733 - DELHI HIGH COURT ] By Finance (No. 2) Act of 2014, sub-section (6) to Section 11 stands inserted with effect from 1st April, 2015 to the effect that where any income is required to be applied, accumulated or set apart for application, then for such purposes the income shall be determined without any deduction or allowance by way of depreciation or otherwise in respect of an asset, the acquisition of which has been claimed as application of income under this Section in the same or any other previous year. The legal position, therefore, would undergo a change in terms of Section 11(6), which has been inserted and applicable with effect from 1st April, 2015 and not to the assessment years in question. The newly enacted sub-section relates to application of income Set off of loss and carry forward of claim for excess application for the year - HELD THAT:- As decided in own case [ 2012 (10) TMI 786 - ITAT, DELHI ] adjustment of the expenses incurred by the trust for charitable and religious purposes in the earlier year against the income earned by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... above at the time of hearing. 2. Brief facts of the case are as under: The assessee filed its return of income declaring nil income on 30/09/10. The return was accompanied by audited report in form 10 B and the case was selected for scrutiny. Notices under section 143(2) and 142(1) were issued along with questionnaire upon the assessee. In response to statutory notices received, representatives of assessee appeared and filed various necessary submissions which were examined on test check basis. 2.1. Assessee had claimed exemption under section 11 read with section 12 of the Income Tax Act, 1961 (the Act) and runs 11 core schools in the name of Delhi Public School (DPS) under its own umbrella. Assessee has also been granted permission to around hundred other entities across the country to open school and make use of its brand name. Such other schools which have been allowed permission to use it s name are termed as satellite schools. 2.2. During the year under consideration, assessee had received certain amount towards maintenance charges which were in fact in the nature of franchisee fees obtained by Society for allowing such satellite schools to use its brand name. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sets while computing income of trust, Ld.AO held that depreciation could not be taken into account because full capital expenditure has been allowed in the year of acquisition of the assets. The Ld. DR placed reliance upon the decision of Hon ble Delhi High Court in the case of DIT vs. Chiranjiv Charitable Trust reported in 223 Taxmann.com 71 . 5.1. On the contrary assessee placed reliance upon a subsequent decision of Hon ble Delhi High Court in the case of CIT vs. Indraprastha Cancer Society reported in 53 Taxmann.com 463. 5.2. We have perused the submissions advanced by both the sides in the light of the decisions relied upon by them. 5.3. It is observed that order passed by this Tribunal in assessee s own case for assessment year 2009-10 in ITA No. 4081/del/2012 placed at page 68 of the paper book dealt with this issue as under: 10. Furthermore, we note the Hon ble Jurisdictional High Court decision in the case of DIT vs. Vishwa Jagriti Mission in ITA no.140/2012 vide order dated 29.3.2012. In this case the Ld.CIT(A) on the basis of the order passed by the Ld.DIT(E) accepted assessee s claim for exemption u/s 11. As regards the claim of depreciation on fixe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... which was decided on 27th November, 2013. The judgment in the case of Indian Trade Promotion Organisation (supra) was not cited and referred to. The judgment in the case of Charanjiv Charitable Trust (supra) is authored by the same Judge, who has also authored the decision in the case of Vishwa Jagriti Mission (supra). It is obvious that in Charanjiv Charitable Trust (supra), the Division Bench could not have taken a different view on the legal ratio as interpreted in Vishwa Jagriti Mission (supra). Further, the decisions in the case of Vishwa Jagriti Mission and Indian Trade Promotion Organisation (supra) being prior in point of time would act as binding precedents and could not have been overruled or dissented from by a coordinate Division Bench. {Para 10) By Finance (No. 2) Act of 2014, sub-section (6) to Section 11 stands inserted with effect from 1st April, 2015 to the effect that where any income is required to be applied, accumulated or set apart for application, then for such purposes the income shall be determined without any deduction or allowance by way of depreciation or otherwise in respect of an asset, the acquisition of which has been claimed as application of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... areful consideration, we find that the Hon'ble jurisdictional High Court in the case of D.I.T. vs. Raghuvanshi Charitable Trust (Supra) has held as under (Heads notes only):- Section 11 of the Income Tax Act, 1961 - Charitable or religious trust - Exemption of income from property held under - Whether a trust can be allowed to carry forward deficit of current year and to set off same against income of subsequent years - Held, yes - Whether adjustment of deficit of current year against income of subsequent year would amount to application of income of trust for charitable purposes in subsequent year within meaning of section 11(1)(a) - Held, yes. 18. In view of the aforesaid exposition by the Hon'ble Jurisdictional High Court, we find that there is no infirmity in the order of the Ld. Commissioner of Income Tax (A), accordingly, we uphold the same. In the result, the issue raised by the Revenue stands dismissed. 6.3. Respectfully following the same we do not find any infirmity in the order of Ld. CIT (A). 6.4. In view of above this ground raised by revenue stands dismissed. 7. In the result appeal filed by the revenue stands dismissed. Order pro ..... X X X X Extracts X X X X X X X X Extracts X X X X
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