TMI Blog2023 (7) TMI 1270X X X X Extracts X X X X X X X X Extracts X X X X ..... tha Cancer Society case [ 2014 (11) TMI 733 - DELHI HIGH COURT] and other connected Appeals, we find no error or infirmity in the order of the CIT(A). Merely because a ground has been deleted by the assessee and later on pressed the said ground by way of a submission, the authorities cannot deny the legal entitlement of allowability of depreciation to the assessee, which has been rightly granted to the Assessee by the CIT(A), accordingly, we find no merit in revenue ground. - I.T.A. No. 5717/DEL/2017 - - - Dated:- 27-7-2023 - Dr. B. R. R. Kumar, Accountant Member And Shri Yogesh Kumar Us, Judicial Member For the Assessee : Shri Durgesh Shanker, Adv For the Department : Shri Anuj Garg, Sr. Ld. DR ORDER PER YOGESH KUMAR U.S., JM This appeal is filed by the Revenue against the order of the ld. Commissioner of Income Tax (Appeals)-40, Delhi [hereinafter referred to CIT (Appeals) dated 16/06/2017 for assessment year 2012-13. 2. The assessee has raised the following substantive grounds of appeal:- 1. On the basis of facts and circumstances of the case and in law, the Ld.CIT(A) has erred in ignoring the fact in deleting the addition of Rs. 2,88,10,95 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he year(s) of acquisition/purchase of assets and secondly in the form of depreciation allowance over a period of usage of assets/several assessment years. 7. Whether the CIT(A) was correct in allowing the depreciation claim of assessee, when the legislature, by way of amendment made w.e.f.- 01.04.2015, conveyed its intention not to allow double deduction, one by way of application and another by way of depreciation on the same assets, cost of which has been allowed as application of income and therefore, it was never the intention of the legislature to allow double deduction. 8. 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 shall not apply on the case of the present assessment year i.e. A.Y. 2012-13. The Appellant craves leave to add, alter, amend, append or delete any of above grounds. 3. Brief facts of the case are that, return of income for the Assessment Year 2012-13 was filed declaring NIL income, the case was selected for scrutiny through CASS, an assessment order u/s 143(3) of the Act ca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the details of expenses incurred on account of travelling and conveyance were furnished to the Assessing Officer vide letter dated 03/03/2015. The Ld. A.O. has not made any allegation that amount have been spent for the purposes which are other than for meeting the objections of the trust or are not for charitable purpose. Considering the fact that the assessee has provided the details of the expenses on account of travelling and conveyance before the A.O., we find no error or infirmity in the order of the CIT(A) in deleting the addition made by the A.O. on account of disallowance of 50% expenses including travelling and conveyance. Accordingly we find no merit in the Ground No. 1 of the Revenue and the Ground No. 1 of the Revenue is dismissed. 7. Ground No. 2 to 8 are regarding deletion of the addition of Rs. 2,16,72,420/- made by the A.O. on account of disallowance of depreciation. The Ld. Departmental Representative submitted that the CIT(A) committed error by ignoring the fact that the assessee is a religious institution are governed by the separate or independent provisions and in Chapter III of the Act and the depreciation u/s 32 Act is under Chapter IV of the Act under t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... even when the income is applied for acquiring a capital asset. In view of this, charitable institutions were not eligible for depreciation. 4.3.3 This view has been clarified in Para 7.5 of the Explanatory Notes to the provisions of the Finance (No. 2) Act, 2014 issued vide Circular No. 1/2015 dated 21st January, 2015. Section 11 was amended by the Finance (No. 2) Act, 2014 whereby a new subsection has been inserted which provides that under section 11, income for the purposes of its application shall be determined without any deduction or allowance by way of depreciation or otherwise in respect of any asset, acquisition of which has been claimed as an application of income under section 11 in the same or any other previous year. Para 7.5 of the said Explanatory Notes are reproduced as under. 7.5 The second issue which had arisen was that the existing scheme of section 11 as well as section 10(23C) of the Income-tax Act provided exemption in respect of income when it is applied to acquire a capital asset. Subsequently, while computing the income for purposes of these sections, notional deduction by way of depreciation etc. was being claimed and such amount of notional ded ..... X X X X Extracts X X X X X X X X Extracts X X X X
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