9911796707
TMI Blog2012 (6) TMI 822X X X X Extracts X X X X X X X X Extracts X X X X ..... rposes of the society. 2. That the ld. CIT(A) has failed to appreciate that the appellant society is entitled to deduction on account of depreciation in relation to the assets used for the purposes of the society for working out the surplus in accordance with the provisions of section 11(1) of the Income Tax Act. 3. That the ld. CIT(A) has failed to appreciate that allowance of depreciation for working out the surplus under section 11(1) is a separate issue vis-a-vis treatment of the purchase cost of the assets for the purpose of ascertaining application of income under the Act. 4. That the order passed by the ld.CIT(A) is in utter disregard of the order of the Hon'ble Income Tax Appellate Tribunal in appellant's own case for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed reliance upon the order of the ld. CIT(A). 5. Having given a thoughtful consideration to the rival submissions and from a careful perusal of record, we find that the impugned issue is squarely covered by the order of the Tribunal in assessee's own case for assessment years 2005-06 and 2006-07. Similar view was also taken by the various High Courts in the aforesaid cases. For the sake of reference, we extract the relevant portion of the order of the Tribunal for assessment year 2006-07 as under:- "4. Having given a thoughtful consideration to the rival submissions in the light of the orders of the lower authorities and the Tribunal's order for assessment year 2005-06 in the assessee's own case, we find that while completing the assessm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the assessee on general principles or under section 11(1)(a) of the Income-tax Act, 1961. Income of a charitable trust derived from building, plant and machinery and furniture is liable to be computed in a normal commercial manner although the trust may not be carrying on any business and the assets in respect whereof depreciation is claimed may not be business assets. In all such cases, section 32 of the Act providing for depreciation, for computation of income derived from business or profession is not applicable. However, the income of the trust is required to be computed under section 11 on commercial principles after providing for allowance for normal depreciation and deduction thereof from the gross income of the trust." 8. In ou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... A) and direct the Assessing Officer to allow the depreciation on the Written Down Value of the assets. 9. In the result, the appeal is allowed." 5. Since the aforesaid order of the Tribunal has not been reversed so far, we are required to follow the same and respectfully following the same we hold that the assessee is entitled for depreciation and deduction thereof from the gross income even when the income of the assessee was required to be computed under section 11 of the Act. Accordingly we set aside the order of the ld. CIT(A) and direct the Assessing Officer to allow depreciation on the written down value of the assets." 6. Respectfully following the same, we decide the issue in favour of the assessee. Accordingly the order of th ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
