TMI Blog2013 (11) TMI 123X X X X Extracts X X X X X X X X Extracts X X X X ..... n on an asset, even though the investment on the same was allowed as an application of income – Decided in favour of assessee. - ITA Nos. 774 & 775/Bang/2011 - - - Dated:- 3-8-2012 - Order These are appeals preferred by the Department against the separate orders of the Commissioner of Income-tax (Appeals), Mysore, both dated June 29, 2011. The relevant assessment years are 2007-08 and 2008-09. The grounds raised in these appeals are identical. They read as follows: (i) The learned Commissioner of Income-tax (Appeals) has erred in allowing the depreciation in the instant case. (ii) While filing return of income the assessee has claimed benefit under section 11 which include one, in the form of application of funds an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Aggrieved by the disallowance of depreciation in computing the commercial profits of the assessee, the assessee carried the matter in appeal before the first appellate authority. It was submitted before the first appellate authority that the Assessing Officer has erred in not permitting the set-off of depreciation claimed on the assets put to use for achieving the objectives of the trust against the gross receipts as permitted under section 11 of the Act. It was further submitted that the Assessing Officer had erred in not following the order of the jurisdictional Bench of the Tribunal in the assessee's own case for the assessment year 2006-07 in I. T. A. No. 775/Bang/2009 dated January 29, 2010. The Commissioner of Income- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... [2010] 8 taxmann.com 82 (Cochin-ITAT). It was submitted that the above order of the Tribunal was affirmed by the hon'ble Kerala High Court in the case of Lissie Medical Institutions v. CIT [2012] 348 ITR 344 (Ker) vide its judgment dated February 17, 2012 in I. T. A. No. 42/2011. It was submitted that the hon'ble Cochin Bench of the Tribunal has elaborately considered the issue and distinguished the judgment of the hon'ble jurisdictional High Court in the case of CIT v. Society of the Sisters of St. Anne [1984] 146 ITR 28 (Karn) on which the Bangalore Bench of the Income-tax Appellate Tribunal has placed strong reliance while deciding the issue in favour of the appellant for the assessment year 2006-07. The learned authori ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on 260A of the Act. We have heard the rival submissions and perused the materials on record. The Tribunal in the assessee s own case for the assessment year 2006-07 at paragraph 7 of its order has decided the issue in favour of the assessee. The relevant finding of the Tribunal reads as follows: 7. We have heard both the parties. We have in the earlier para referred to the findings of the hon ble Bombay High Court in the case of Institute of Banking [2003] 264 ITR 110 (Bom). We have also gone through the decision of the jurisdictional High Court. The hon ble jurisdictional High Court held that the amount of depreciation debited to the account of charitable institutions is to be deducted to arrive at an available income from char ..... X X X X Extracts X X X X X X X X Extracts X X X X
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