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2015 (5) TMI 1197 - AT - Income TaxDepreciation to assessee trust - According to the Revenue, allowing capital expenditure at the time of acquisition of capital asset as application of income for charitable purpose and further allowing depreciation on the very same capital assets would amount to conferring double deduction - HELD THAT:- Hon’ble Supreme Court in the case of Escorts Ltd. [1992 (10) TMI 1 - SUPREME COURT] held that a trust claiming depreciation cannot be equated with a claim for double deduction. Hon'ble Karnataka High Court in the case of CIT v. Society of Sisters of Anne, [1983 (8) TMI 44 - KARNATAKA HIGH COURT] held that u/s. 11(1) of the Act, income has to be computed in normal commercial manner and the amount of depreciation debited in the books is deductible while computing such income. - Decided against revenue Accumulation of 15% of the income u/s. 11(1)(a) - HELD THAT:- The delegated power of rule making given in section 11(2) is only for prescribing the manner of filing the application. The power does not include fixation of time limits. Delegated legislative powers are circumscribed by the statute delegating such powers and transgression thereof can render the rules beyond the scope of such delegation. Hence, we cannot fault the learned CIT(A) taking cognizance of the revised Form No.10A filed by the assessee. In any case, as observed by learned CIT(A) in the case of Bharath Kalyan Pratisthan [2007 (1) TMI 98 - DELHI HIGH COURT] as well as Bharat Krishak Samaj [2007 (8) TMI 8 - HIGH COURT,NEW DELHI] had held that details of purpose of accumulation was not a requirement that can be read into section 11(2). Revenue has not been able to bring before us any decision of Hon’ble jurisdictional High Court on this issue, and therefore, assessee has to be given the benefit of the decision in its favour, in preference to the decisions going against it Accumulation of claim based on Form No.10 - In view of the acceptance of the claim for accumulation of claim based on Form No.10 and in view of the fact that 15% accumulation was disallowed by the AO only for the reason of rejection of accumulation of funds based on Form No.10, we are of the view that the CIT(A) was fully justified in allowing the claim of the Assessee for accumulation of 15% of the receipts.
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