TMI Blog2014 (1) TMI 1632X X X X Extracts X X X X X X X X Extracts X X X X ..... off the same against the income of the subsequent years - Decided against Revenue. - ITA No.4230 /DEL/ 2013 - - - Dated:- 28-1-2014 - SHRI J. S. REDDY And SHRI A. T. VARKEY, JJ. For The Appellant : None. For The Respondent : Shri Sameer Sharma, Sr. DR. ORDER PER J. S. REDDY, AM: This is an appeal filed by the Revenue directed against the order of the Commissioner of Income Tax (Appeals) Noida, U.P vide dated 05.04.2013 for the assessment year 2008-09. 2. None appeared on behalf of the assessee despite issued of notice. There is no petition for adjournment either. Under the circumstances we dispose of the case ex-parte on merits qua the assessee. 3. Heard the Ld. Departmental Representative Mr. Sameer Sharma. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s. Addl. CIT 102 TTJ 693 Ahmedabad. City Montessori School vs. ACIT 64 TTJ (All) 475. CIT vs. Programme for Community Organization 228 ITR 620 (KER) None of these cases are of jurisdictional Allahabad High Court. Moreover, what Supreme Court has held in the case of programme for Community Organization 248 ITR 1 is that the income of the trust should be computed in commercial manner. It no where states that depreciation can be allowed as application of income in the hands of the assessee. Going by the legal position in assessee s own case in the A. Y. 2005-06, after considering the facts of case, appeal to the ITAT has been filed on the same issue. In view of the foregoing legal position, depreciation cannot be allowed as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d Business and profession but only Income from property held under the Trust . This can never be taken to be same as Income from Business Profession. iii. As per a departmental Circular income has to be computed in a commercial manner. However the question arises whether an asset whose entire cost has been allowed as deduction by way of Exemption u/s 11 should be considered for the benefit of depreciation. This issue has been decided by the Hon ble Supreme Court in the case of Escorts Ltd. vs. Union of India 1993, 199 ITR page 43, the Hon ble Supreme Court in this case has decided that double tax or weighted deduction cannot be inferred. Where-ever the legislature wanted to give such deduction, it has specifically said so. The Ho ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e expenditure u/s 11 of the I. T. Act,1961, without appreciating facts that depreciation is not a real expenditure but a notional expenditure only. 2. That the CIT (A) has erred in law and on facts by holding that the society is allowed to carry forward excess application of current year and to set off the same against the income of the subsequent years, without appreciating the fact that as per provision of section u/s11, no such carry forward excess application of current year and to set off the same against the income of the subsequent years, without appreciating the fact that as per provision of section u/s 11, no such carry forward of excess application is allowable. 3. That the order of CIT (A) deserves to be set aside and the o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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