Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2021 (5) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2021 (5) TMI 358 - AT - Income TaxAssessment of trust - disallowance of claim of depreciation - HELD THAT:- We find that the Ld. CIT(A) following the decision of DIT (Exemption) Vs Indraprastha Cancer Society [2014 (11) TMI 733 - DELHI HIGH COURT] has allowed the claim of the assessee of the depreciation, despite claiming by assessee of capital expenditure corresponding to the depreciation as application of funds for charitable purposes while calculating excess of income over expenditure in terms of section 11 of the Act. We may also like to mention that Hon’ble Supreme Court in the case of Rajasthan and Gujarati Charitable Foundation Poona [2017 (12) TMI 1067 - SUPREME COURT] has allowed benefit of the depreciation while claiming exemption under section 11. Claim of carry forward of losses - HELD THAT:- Income is to be computed in accordance with commercial principles and as such adjustment of brought forward loss/deficit and carry forward loss/deficit is to be allowed. See case of DIT Vs Raghuvanshi Charitable Trust [2010 (7) TMI 158 - DELHI HIGH COURT] which is a binding precedent. In our opinion, there is no error in the order of Ld. CIT(A) on the issue in dispute, and accordingly, we uphold the same. The ground of the appeal of the Revenue is accordingly dismissed.
|