TMI Blog2011 (8) TMI 1175X X X X Extracts X X X X X X X X Extracts X X X X ..... is an appeal by the department and it relates to the assessment year 2007-08. The following grounds have been taken:- 1. On the facts and in the circumstances of the case, and in law, the learned CIT(A), Mumbai has erred in directing the Assessing Officer to delete the addition of ₹ 58,24,330/- made on account of disallowance of depreciation inspite of the fact that the assessee had alr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iture account filed for the year under appeal along with the return of income, the assessee claimed depreciation of ₹ 58,24,330/-. The Assessing Officer took the view that the depreciation was not allowable because the assets on which depreciation was claimed were already allowed as application of income from the trust property as per the provisions of section 11 of the Act. The assessee, ho ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ay High Court cited supra, against which the revenue has come in appeal. 4. We have carefully considered the facts and the rival contentions. In CIT vs. Institute of Banking (supra), the Bombay High Court held that while computing the income of a trust, both the capital expenditure on acquisition of assets and the depreciation on the said assets were allowable, the capital expenditure being all ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... expenditure. Both these judgments have been considered by the Punjab Haryana High Court in a recent decision in CIT vs. Market Committee, Pipli (2011) 330 ITR 16 (P H). In this case the assessee was a trust registered under the Income Tax Act as a charitable trust. The Assessing Officer disallowed depreciation on the assets on the ground that since the income was exempt, allowing depreciation ..... X X X X Extracts X X X X X X X X Extracts X X X X
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