2013 (11) TMI 1778 - AT - Income Tax

Summary

Issues involved:
The judgment involves the issue of allowing depreciation on assets claimed as application of income by an educational trust registered u/s 12A of the Income Tax Act.

Summary:
The Revenue filed an appeal against the order of the Commissioner of Income Tax(A) allowing depreciation on assets already claimed as application of income by the trust. The Assessing Officer treated the depreciation claimed as income not applied for charitable purpose. However, the CIT(A) allowed the claim of depreciation citing precedents from Punjab and Haryana High Court and ITAT Chennai. The Tribunal considered various judicial pronouncements and upheld the CIT(A)'s decision, emphasizing that depreciation on trust assets is deductible for computing income under Section 11. The Tribunal confirmed the order of the CIT(A) based on the precedent set by the Chennai Bench of the Tribunal.

In conclusion, the appeal of the Revenue was dismissed, and the order of the CIT(A) allowing the claim of depreciation by the educational trust was upheld.