TMI Blog2015 (11) TMI 645X X X X Extracts X X X X X X X X Extracts X X X X ..... edings and is having the specific objects therefore trust is entitled for the accumulation of income. - Decided in favour of assessee. Allowability of depreciation - AO has disallowed the depreciation claimed by the assessee trust on the ground that once the assets are acquired assessee has claimed the deduction as application of income and further deprecation there on is also claimed - Held that:- this issue is squarely covered in favour of the assessee by the decision of Honourable Jurisdictional High court in case of Director of Income tax V Vishwa Jagriti Mission [2012 (4) TMI 289 - DELHI HIGH COURT] wherein held held that claim of depreciation on fixed assets utilized for the charitable purposes has to be allowed while arriving at t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of surplus for the following reasons a. Resolution dated 25/10/2007 was submitted on 21/12/2009 at the fag end of the assessment proceedings. AO also stated that certified copy of resolution is submitted and not the original resolution. b. In the original resolution form no 10 was not attached. Therefore condition that form no 10 which was required to be submitted along with return of income was not complied with. c. Signatories of return of income as well as the resolution for accumulation of income are different trustees. d. AR of the assessee failed to produce the minute book of the trust. Further the depreciation of ₹ 6,38,652/- was also disallowed on the grounds that it amounts to double deduction because at the ti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . 10 is submitted before the assessing officer and along with a copy of resolution passed at meeting held on 25th October, 2007. She further submitted that the infirmity or genuineness doubted by the AO are incorrect as the same are certified copy of the resolution therefore she said that assessee trust should be granted the benefit of accumulation of its income. Regarding filing of the declaration in Form no 10 at the fag end of the assessment proceedings she relied on the decision of Hon ble Gujarat High Court in case of Mayur Foundation 274 ITR 562 wherein it is held that if form no. 10 is submitted before the completion of the assessment proceedings the assessee should be given the benefit of accumulation. She also relied on the decisio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ctive forum for representation on the interest of the fashion design industry for its professional advancement and growth and also to make representation before various government and semi government organizations. It has also its main object of promotion of fashion design industry in India as well as outside India by strategic planning and also of promotional campaigns , demonstration media coverage etc. The main objects of the association therefore covers many facets of the fashion design industry and it has as much as 12 main objects and 15 ancillary objects. The object of promotion of fashion industry is one of the main object of the trust at serial no 2 of the main objects. Therefore it cannot be said that in form no 10 as well as in r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nce the assets are acquired assessee has claimed the deduction as application of income and further deprecation there on is also claimed. Therefore it amounts to double deduction. CIT (A) confirmed the disallowance applying the ratio of decision of Honourable Supreme court in case of Escorts Limited V Union of India 199 ITR 43. 08 Before us the ld AR submitted that this issues ins now covered on favor of the assesse because of the decision of Honourable Delhi high court in case of DCIT V Vishwa Jagriti Mission dated 29/3/2012. 09 Ld DR relied on the orders of AO and CIT (A). 10 We have carefully perused the orders of lower authorities and arguments advanced. We are of the view that this issue is squarely covered in favour of the as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l principles in order to determine the amount of income available for application to charitable purposes. It was a case where the assessee was carrying on business and the statutory computation provisions of Chapter IV-D of the Act were applicable. In the present case, we are not concerned with the applicability of these provisions. We are concerned only with the concept of commercial income as understood from the accounting point of view. Even under normal commercial accounting principles, there is authority for the proposition that depreciation is a necessary charge in computing the net income. Secondly, the Supreme Court was concerned with the case where the assessee had claimed deduction of the cost of the asset under Section 35(1) of t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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