TMI Blog2023 (2) TMI 339X X X X Extracts X X X X X X X X Extracts X X X X ..... on, Pune [ 2017 (12) TMI 1067 - SUPREME COURT] has settled the issue and specifically observing and taking into cognizance the fact that amendment brought in Section 11(6) of the Act vide Finance Act, no. 2 / 2014 is prospective in nature, from assessment year 2015-1,6 while the present year under consideration is A.Y. 2014-15. Therefore ground decided against the Revenue. - ITA No. 6282/Del/2017 - - - Dated:- 7-2-2023 - Sh. Shamim Yahya, Accountant Member And Sh. Anubhav Sharma, Judicial Member For the Assessee : Ms. Navidita, Adv. For the Revenue : Sh. Jitender Chand, Sr. DR ORDER PER ANUBHAV SHARMA, JM : The appeal has been filed by the Revenue against order dated 03.07.2017 in Appeal No. 225/201 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent of Rs 3,04,41,942 on the assumption that such allowance shall of double deduction. 2.2 The assessee during the year derived income from property held under the samiti for charitable purposes and is allowed to set apart upto 15% of such income and the amount as such set apart is not included in the total income of the previous year of the samiti. However the AO did not allow the claim of accumulation as such under seetion 11(1) (a) and restricted the claim upto Rs. 1,37,14,631 as against the claim of the assessee for Rs. 2,10,37,413 (15% of Rs. 14,02,49,420). 2.3 Further, the point of allowability of carried forward of deficit from one year to succeeding year was discussed during the proceedings and the learned assessing office ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that exemption should be granted on total income derived. The Commissioner (Appeals), the Tribunal and the High Court reversed the order of the Assessing Officer. In this case the Hon'ble Supreme Court held as under: Having regard to the plain language of the above provision, it is clear that a charitable or religious trust is entitled to accumulate twenty-five per cent of its income derived from property held under trust. For the present purpose, the donations, the assessee received, in the sum of Rs. 2,57,376 would constitute its property and it was entitled to accumulate twenty-five per cent thereout. It was unclear on what basis the revenue contended that it was entitled to accumulate only twenty-five per cent of Rs. 87,010 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the appeal of the assessee by ignoring the fact that assessee like charitable or religious institutions are governed by almost the separate or independent provisions of section 11,12, 12A ,12AA 13 and these provisions are independent code in itself in Chapter III of the Income Tax Act, 1961 and claim of depreciation u/s 32 comes under Chapter IV of the Act under the head D‟ - Profit and Gains of Business or Profession and depreciation is allowed when capital assets are used for the purpose of business. 4. On the facts and circumstances of the case and in law the Ld CIT(A) has erred in holding that the insertion of section 11(6) brought into the Act with effective from 01.04.2015 is ' prospective in nature and therefore ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1. Hon ble Supreme Court of India in CIT vs. Rajasthan and Gujarati Charitable Foundation, Pune reported in 402 ITR 441(SC) has settled the issue in Civil Appeal No. 7186 of 2014 vide order dated 13.12.2017 and specifically observing and taking into cognizance the fact that amendment brought in Section 11(6) of the Act vide Finance Act, no. 2 / 2014 is prospective in nature, from assessment year 2015-1,6 while the present year under consideration is A.Y. 2014-15. Therefore the findings of Ld. CIT(A) in regard to ground no 4 needs no interference and consequently the ground no 1 to 4 stands decided against the Revenue. 7. As with regard to ground no5 and 6 again the Ld. DR could not set anything to take a contrary view taken by coordi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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