TMI Blog2015 (2) TMI 357X X X X Extracts X X X X X X X X Extracts X X X X ..... been filed by the Revenue against the order of the Commissioner of Income Tax(Appeals)-I, Coimbatore dated 26-06-2014 for the Assessment Year (AY) 2010-11. The only issue raised by the Revenue in appeal is claim of depreciation of the assessee, allowed by the CIT(Appeals). The assessee has filed Cross-objections in support of the impugned order. 2. The assessee is a trust registered u/s.12A of the Income Tax Act, 1961 (herein after referred to as 'the Act'). The assessee filed its return of income for the AY. 2010-11 on 29-07-2010 declaring its taxable income as 'NIL'. In scrutiny assessment, the Assessing Officer held that the assessee is not eligible for claiming depreciation on assets. U/s.11 capital expenditure in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... port his submissions, the ld.DR placed reliance on the decision of the Hon'ble Supreme Court of India rendered in the case of J.K. Synthetics Ltd., Vs. Union of India reported as 199 ITR 43 (SC). 4. On the other hand, Shri K.P.Vasantha Kumar, appearing on behalf of the assessee vehemently supported the order of the CIT(Appeals). The ld.Counsel for the assessee submitted that identical issue had come up in the case of M/s.Kongunadu Arts Science College Council (supra). While adjudicating the issue, the Tribunal placed reliance on the decision of co-ordinate bench in the case of M/s. Grand Lakes Institute of Management in ITA Nos. 931 932/Mds/2012 decided on 22-06-2012, decision of the Hon'ble Delhi High Court in the case of DI ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Tribunal in the case of M/s. Grand Lakes Institute of Management in ITA Nos. 931 932/Mds/2012 decided on 22-06-2012. In the aforesaid decision of co-ordinate bench, catena of judgments were referred and discussed to conclude that in case of trusts registered u/s.12A, the claim of depreciation does not amount to double deduction. The Hon'ble Punjab Haryana High Court in the case of CIT Vs. Market Committee, Pipli (supra) has held that the income of the assessee being exempt, the assessee is only claiming that depreciation should be reduced from the income for determining the percentage of funds which have to be applied for the purpose of the trust. This does not amount to double deduction as contemplated by the Revenue. In view ..... X X X X Extracts X X X X X X X X Extracts X X X X
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