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2019 (7) TMI 128 - AT - Income TaxDeduction u/s 11 - addition on account of donation given to other charitable institution - non-availability of information such as purpose of donation, basis of selection of done - reasons for utilization of fund that have been accumulated for the purpose and objectives of the assessee's trust, to a done whose objectives are on altogether different track - HELD THAT:- We find merit in the arguments of the Ld. Counsel for the assesee that the AO could not enquire into the selection of the donee or the purpose of the donation unless the genuineness is doubted. It has been held in various decisions that donation by one charitable institution to another such institution is permissible in law and would be treated as application of income. The donee in the instant case is a charitable institution which is evidenced by the order passed by the DIT (Exemption) u/s. 80G on 31.03.2011 which covers the period for A. Y. 2011-12 onwards. The observation of the AO that the assessee had not furnished details of past years accumulations etc is also factually incorrect since such information was filed by the assesse vide letter dated 05.02.2005 addressed to the Assessing Officer, copy of which is placed at page No. 87 to 90 of the paper book. In view of the above discussion we are of the considered opinion that the Ld. CIT(A) is fully justified in deleting the addition made by the AO on account of donation given to M/s. Subros Educational Society (registered). The ground raised by the revenue is accordingly dismissed. Addition of sponsorship expenses payable to M/s. Escort Heart Institute and Research Centre - non production of the necessary details - HELD THAT:- Although the amount of ₹ 1.50 crores has been claimed as sponsorship fee payable for organizing seminars and continuing medical education events, however, the assessee furnished only 2 vouchers for ₹ 11,16,000/- which the Assessing Officer has allowed. In our opinion the assessee is duty bound to furnish all the requisite details for the examination of the AO especially when an amount has been claimed as deduction on the basis of the claim made by another institution as sponsorship fees. Assessee cannot be absolved of its responsibility by not producing requisite details for the examination/ verification of the Assessing Officer. Considering the totality of the facts of the case and in the interest of justice we deem it proper to restore the issue to the file of the AO with a direction to give one more opportunity to the assessee to substantiate with evidence to his satisfaction Depreciation to assessee trust - HELD THAT:- CIT(A) relying on various decisions held that assessee is entitled to claim depreciation even if the value of the asset has been claimed as application of income in the year of purchase in the light of various decision and in conformity with the past assessment. According to the CIT(A) the Act was amended w.e.f. 01.04.2015 to deny deduction on account of depreciation and not for the earlier years. We do not find any infirmity in the order of the Ld. CIT(A) on this issue. The Hon’ble Supreme Court in the case of CIT Vs. Rajasthan and Gujarati Charitable Foundation Poona [2017 (12) TMI 1067 - SUPREME COURT] has already decided the issue in favour of the assessee by holding that depreciation is allowable on the assets, the cost of which is fully allowed as application of income u/s. 11 in the past years.
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