2015 (10) TMI 1451

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..... of the case and in law, the learned Commissioner of Income-tax (Appeals) has erred in ignoring the fact that in a case where capital expenditure has been treated to have been applied for the object of the trust, allowance of deduction on account of depreciation will amount to double deduction. (ii) On the facts and in the circumstances of the case and in law, the learned Commissioner of Income-tax (Appeals) has erred in ignoring that as per provisions of section 32 of the Income-tax Act, 1961 depreciation is to be allowed against the profits and gains of business or profession whereas the assessee is a charitable institution registered under section 12AA of the Act and is not computing/offering its income under the head profits and gains .....

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..... that such notional statutory deductions like depreciation, if claimed as deduction while computing of income, is required to be added back while computing the income for the purpose of application in the income and expenditure account. (iv) The appellant craves leave to add, to alter or amend. 4. The issue raised by the Revenue in both these appeals is identical that is against the grant of depreciation. The assessee is a charitable trust and it claimed depreciation on certain assets, which according to the Revenue would tantamount to double deduction as capital expenditure has been treated to have been applied for object of the trust. The Department is contesting such deletion made by the learned Commissioner of Income-tax (Appeals) on .....

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..... nted to the assessee. The hon'ble Delhi High Court further held that the decision of the hon'ble Supreme Court in the case of Escorts Ltd. v. Union of India [1993] 199 ITR 43 (SC) would not be applicable to such cases. The relevant observations of the hon'ble Delhi High Court have been reproduced by the learned Commissioner of Income-tax (Appeals) in the order passed for the assessment year 2008-09. As against the aforementioned view taken by the learned Commissioner of Income-tax (Appeals), the Department is contesting the deletion on the ground that it will amount to double deduction and during the course of hearing before the hon'ble Kerala High Court in the case of Lissie Medical Institutions v. CIT [2012] 348 ITR 344 (K .....

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