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2018 (9) TMI 776 - AT - Income TaxDisallowance of depreciation to assessee trust - cost of assets on which depreciation was claimed was allowed as application of income - Held that:- By virtue of judgment in the case of Rajasthan & Gujarati Charitable Foundation Poona (2017 (12) TMI 1067 - SUPREME COURT) even where cost of acquisition is treated as application of income, depreciation has to be allowed on such assets. Accordingly, we are of the opinion that assessee was eligible for claiming such depreciation. Excess application of income for earlier years claimed for carry forward not allowed - set off denied against the surplus for the impugned assessment year - Held that:- There is no dispute that excess of application claimed by the assessee was the amount which was expended above its income. In other words, assessee only claimed excess application without considering accumulation of 15% allowed to it. In such circumstances, we are of the opinion that assessee was eligible for claiming the carry forward of excess over application of income pertaining to the earlier years. Orders of the lower authorities is set aside. AO is directed to give set off claimed by the assessee. Grounds of the assessee stand allowed. Gratuity paid to its employees not allowed as application of income - Claim of the assessee before us is that gratuity payment was actually paid during the relevant previous year, but the AO and CIT (Appeals) took a view that there was no actual cash outflow - Held that:- Now before us, assessee has filed a list showing names of the persons to whom gratuity payments were claimed as effected during the relevant previous year. In the circumstances, we are of the opinion that the matter needs a fresh look by the ld. Assessing Officer. We set aside the orders of the lower authorities and remit the question regarding allowability gratuity payment of ₹ 13, 99, 817/- back to the file of the AO for consideration afresh in accordance with law. - Decided in favour of assessee for statistical purposes.
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