TMI Blog2012 (6) TMI 822X X X X Extracts X X X X X X X X Extracts X X X X ..... st the order of the ld. CIT(A) on various grounds, which are as under:- 1. That the ld. CIT(A) is not justified in confirming the action of the assessing officer in disallowing the claim of depreciation to the appellant society in respect of assets purchased and used for the purposes 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 is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... has also submitted that this issue has also been considered by various High Courts in the cases of CIT v. Market Committee, Pipli [2011] 330 ITR 16 (P H) and CIT v. Tiny Tots Education Society [2011] 330 ITR 21 (P H), in which similar view was expressed by their Lordships. 4. The ld. D.R. has placed 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 ord ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the fixed assets was being allowed to the assessee in the last many years. On a similar issue the Hon'ble Bombay High Court in the case of CIT vs. Institute of Banking [2003] 264 ITR 110 has held as under: Normal depreciation can be considered as a legitimate deduction in computing the real income 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 depreciati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r to allow depreciation on the assets, the cost of which had been fully allowed as application of income under section 11 in the past years. We, therefore, keeping in view the ratio laid down in the aforesaid referred to case of CIT vs. Institute of Banking (supra), set aside the order passed by the learned CIT(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 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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