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2015 (9) TMI 1645 - AT - Income TaxDepreciation on fixed asset of assessee trust - HELD THAT:- Judgment of Apex Court in the case of Escorts Ltd (1992 (10) TMI 1 - SUPREME COURT) relied on by the AO while making the disallowance is not applicable to a charitable organization, like the assessee in the present case which is registered u/s 12A of the Act, since it pertains to the claim of depreciation under the provisions of section 35 of the Act. As per the proposition laid down in the case of DIT (E) vs. Framjee Cawasjee Institute [1992 (7) TMI 331 - BOMBAY HIGH COURT] expenditure on acquisition of depreciable asset was treated as application of income of the trust in the year of acquisition, depreciation is allowable in subsequent years. Disallowance of carry forward of deficit - amount was claimed as set-off against the accumulated carried forward deficit of earlier years - HELD THAT:- It is a settled issue that any surplus amount of the current year can be set-off against the brought forward deficit of the earlier years and the same view was even supported by judgment of CIT vs. Institute of Banking [2003 (7) TMI 52 - BOMBAY HIGH COURT]. Considering the same, CIT (A) has rightly adjudicated the issue by granting relief to the assessee
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