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2016 (7) TMI 1561 - AT - Income TaxExemption u/s 11 - whether the assessee trust is entitled to the claim of depreciation on capital assets, expenditure in respect of which has already been claimed by the assessee as application of income - HELD THAT:- Hon’ble Bombay High Court in the case of “CIT vs. Institute of Banking Personnel Selection” [2003 (7) TMI 52 - BOMBAY HIGH COURT] has held that a trust can claim deprecation on assets, even if, cost of assets has been fully allowed as application of income under section 11 of the Act in past years and that there is no question of double deduction in allowing the depreciation in respect of assets acquired and used by the trust. Assessment t of trust - Assessee trust entitlement to claim the carry forward and set off of deficit of earlier years on account of excess expenditure/application of income - in the case of “DIT(E) vs. Najam Baug Trust” [2015 (1) TMI 1438 - BOMBAY HIGH COURT ] has, while relying upon the decision in the case of “Institute of Banking Personnel Selection” (supra) has held that the assessee is entitled to claim carry forward losses/deficit on account of excess expenditure/application of income in earlier years. We further find that the Tribunal has also discussed in the own case of assessee, the effect of the amendment brought vide Finance (No.2) Act, 2014 in section 11(6) of the Act wherein it has been provided that depreciation will not be allowed while computing application of income w.e.f. April 1, 2015. The Tribunal while relying upon the decision of the Hon’ble Delhi High Court in the case of “Indra Prasstha Cancer Society” [2014 (11) TMI 733 - DELHI HIGH COURT] that the amended provisions are applicable w.e.f. the assessment year 2015-16 and the same will not have any applicability for the assessment years prior to A.Y. 2015-16. The Ld. D.R. has also fairly admitted that both the issues are squarely covered in favour of the assessee
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