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TMI Blog2015 (3) TMI 11X X X X Extracts X X X X X X X X Extracts X X X X ..... By The Court : (Per Hon'ble Govind Mathur,J.) For the assessment year 2004-05 the Assessing Officer disallowed assessee's claim for depreciation of Rs. 26,20,926/-. The Commissioner of Income Tax (Appeals) affirmed the order of assessment but the Income Tax Appellate Tribunal, Jodhpur Bench, Jodhpur by its order dated 18.7.2008, while accepting the appeal preferred by the assessee, direct ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the case aforesaid the Delhi High Court held that if the cost of asset has been allowed as deduction by way of application of income then the depreciation on the same asset cannot be allowed in computation of the income of the trust. Reliance is also placed by learned counsel for the revenue upon a judgment of High Court of Kerala in Lissie Medical Institutions v. Commissioner of Income Tax, Koc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rovisions of Section 11(1)(a) of the Act of 1961. It is asserted that deduction of depreciation in case of a charitable institution is permissible in order to preserve the corpus of the trust and, therefore, it does not amount to double benefit or double deduction. To substantiate the contention reliance is placed upon the judgment of Bombay Court in Director of Income Tax v. Framjee Cawasjee Inst ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rs, depreciation in respect of those assets cannot be taken into account. We have considered the arguments advanced. The assessee is a charitable institution registered under Section 12-A of the Act of 1961 and 100% capital expenditure was availed by it against the asset concerned i.e. a building. Section 32(1) of the Act of 1961 provides for depreciation in respect of building, plant and machin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd ourselves in agreement with the view taken by Bombay High Court in Director of Income Tax v. Framjee Cawasjee Institute (supra) and in CIT v. Institute of Banking Personnel (supra). The substantial question framed in the instant matter, thus, is answered in the terms that the Income Tax Appellate Tribunal rightly allowed depreciation claimed by the assessee on capital assets for which capital e ..... X X X X Extracts X X X X X X X X Extracts X X X X
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