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2023 (7) TMI 1321 - AT - Income TaxDepreciation Claim of trust - purchase of assets taken by the assessee as application of Income u/s 11 - claim disallowed by the AO observing that it would amount to double deduction - HELD THAT:- We note that the case of the assessee is prior to 01.04.2015, therefore, the assessee is eligible for claim as application of income on the depreciation charged on fixed assets, even if the assessee has already claimed application of income on the fixed assets in the year of purchase. This issue has been settled in the case of CIT v. Rajasthan & Gujarati Charitable Foundation, Poona [2017 (12) TMI 1067 - SUPREME COURT] as decided that the amendment made as prospective in nature. Respectfully following the above judgment, accordingly we allow ground No. 1 of the assessee. Corpus fund - as per the assessee, it is towards building corpus fund and not part of the total income, whereas the authorities below considered it as a general receipt of the assessee trust. Since the assessee did not appear before the CIT(A) and substantiate its case, therefore we remit this issue to the CIT(A) for fresh consideration and decision as per law. Loss on sale of asset - Lower authorities have held that the assessee has not incurred any actual expenditure, therefore, they have not allowed application of income. We note that it is not clear from the orders of revenue authorities, whether the loss suffered on the sale of fixed asset is claimed as application of income in the year of purchase of such assets and further whether depreciation is claimed on such assets and/or the depreciation has been claimed as application of income. If yes, then the assessee will not get benefit of application of income in the year of loss suffered on sale of such assets. Therefore, this issue is also remitted back to the file of CIT(A) for verification and fresh decision as per law. Disallowance of claim as application of income towards refund of caution money to the students which was received by the assessee at the time of admission of students for want of proper details - assessee is directed to provide the necessary details for proof of payments which could not be produced before the AO. We remit this issue to the CIT(A) for fresh consideration and decision as per law.
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