TMI Blog2015 (11) TMI 629X X X X Extracts X X X X X X X X Extracts X X X X ..... t year [2015 (8) TMI 89 - DELHI HIGH COURT] to hold that depreciation should be allowed separately in the computation of income. - Decided in favour of assessee. - I. T. A. No. 1136 /Del/ 2015 (assessment year 2010-11). - - - Dated:- 25-8-2015 - R. S. SYAL (Accountant Member) S. K. Khurana, Advocate and Kanishka Mehta, Chartered Accountant, for the appellant. K. K. Jaiswal for the respondent. ORDER 1. R. S. Syal (Accountant Member).-This appeal by the assessee is directed against the order passed by the Commissioner of Income-tax (Appeals) on December 26, 2014 denying depreciation under section 32(1) of the Income-tax Act, 1961, on the premise that the assessee being a charitable institution has claimed exemption for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... me may include purchase of a capital asset. The said purchase is valid and taken into consideration for the purpose for ensuring compliance, i.e., application of money or funds and is not a factor which determines and decides the quantum of income derived from property held under trust. Computation of income is separate and distinct and has to be made on commercial basis by applying the provisions of the Act . Thus it is manifest that the hon'ble Delhi High Court in the assessee's own case for the immediately preceding assessment year has held that depreciation is allowable as separate deduction apart from application of income. The learned Commissioner of Income-tax (Appeals) has relied on the judgment in the case of DIT (Exemption ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ting sub-section (6) to section 11 by the Finance (No. 2) Act, 2014, with effect from April 1, 2015, which reads as under : (6) In this section where any income is required to be applied or accumulated or set apart for application, then, for such purposes the income shall be determined without any deduction or allowance by way of depreciation or otherwise in respect of any asset, acquisition of which has been claimed as an application of income under this section in the same or any other previous year. 5. The effect of this insertion is that from the assessment year 2015-16, no depreciation can be allowed in respect of any asset, whose acquisition has been claimed as an application of income. In view of this later legislative insert ..... X X X X Extracts X X X X X X X X Extracts X X X X
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