TMI Blog2016 (9) TMI 1046X X X X Extracts X X X X X X X X Extracts X X X X ..... inding on a issue, whether accumulation of fund is further permissible after allowing accumulation of fund u/s. 11(1)(a) of the Act. Accordingly, this issue is disposed of for both the assessment years. Investment or deposit disallowed - Held that:- The mode of investment is given in sub-section (5) of section 11 for accumulating the fund. Investment or deposits of money can be made as per sub-section (5) of section 11 of the Act and clause (iii) says that for the purpose of sub-section (2), deposits can be made in any account of the Scheduled Bank or co-operative society engaged in carrying on the business of banking (including a co-operative land mortgage bank or a co-operative land development bank); meaning thereby, if the assessee m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r The Respondent : Smt. Sheetal Borkar, Advocate ORDER Per Sunil Kumar Yadav, Judicial Member These cross appeals are preferred by the revenue and the assessee against the respective orders of the CIT(Appeals). Since the appeals were heard together, these are being disposed of through this consolidated order. We, however, prefer to adjudicate them one after the other. ITA Nos.485 486/B/13 2. In these appeals, the revenue has assailed the order of the CIT(Appeals) that the CIT(A) has not followed the order of the Tribunal in the case of M/s. C M R Janardhana Trust in ITA Nos. 642 643/Bang/2008 dated 24.12.2008 in which it was held that if the entire amount of capital asset purchased during the year is treated a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... xtracted hereunder for the sake of reference:- 5.3 We have heard both parties and perused and carefully considered the material on record. We find that the issue of the assessee being entitled to depreciation, is covered in favour of the assessee by the decision of the co-ordinate bench of this Tribunal in the assessee s own case for Assessment Year 2006-07 in ITA No.983/Bang/2011 of 17.9.2012 it has been as under at para 5 thereof: 05. At the time of hearing, the learned DR relied on the grounds of appeal and reiterated the same as its submissions, but nothing was brought on record to show that the earlier decision of this Tribunal in assessee's own case has been reversed by the Hon'ble High Court of Karnataka. In such fact ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lowing the same, we hold that the assessee is entitled to depreciation and consequently dismiss grounds 2 to 4 raised by Revenue. 6. Since no contrary judgment has been placed by the revenue, we having perused the orders of the Tribunal, hold that the CIT(Appeals) has rightly adjudicated the issue in holding that the assessee is entitled for depreciation. Accordingly, the order of the CIT(Appeals) stands confirmed. ITA Nos.307 308/B/2013 7. In these appeals, the assessee has assailed the order of the CIT(Appeals) inter alia on the following common grounds. For the sake of reference, the grounds raised in ITA No.307/B/2013 are extracted hereunder:- 1. The order of the learned Commissioner of Income tax (Appeals)-V, Ban ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ounting to ₹ 4,59,21,115/-: (a) The learned CIT (Appeals)-V, Bangalore is not justified in law in stating that, investing in capital assets which is not part of the object of the Trust would not amount to an application as envisaged under Section 11 (1)( a) of the Income tax Act, 1961 and thereby not consider the investment made on fixed deposits amounting to ₹ 4,59,21,115/- as application of income. (b) The learned CIT (Appeals)-V, Bangalore has grossly ignored the Board's Instruction No.883-CBDT F.No.180/54/72- IT(Al), dated 24.9.1975 (CBDT Bulletin XXI/l/74, page 157), relied on by the Appellant. 4. Accumulated income treated as deemed income under Section l1(3)(c): (a) The learned CIT (Appeals)-V, Bangalore ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ) has approved the action of the AO by holding that investment in fixed deposits cannot be the object of the assessee trust or for the purpose of the trust for which the trust was created. In this regard, the ld. counsel for the assessee has contended that for making fixed deposits may not be the object of the assessee trust, but for accumulating the fund for a particular purpose, certain investments in FDRs are required. 11. The ld. DR, on the other hand, has placed reliance upon the orders of CIT(Appeals). 12. Having heard the rival submissions and from a careful perusal of the orders of authorities below, we find that the mode of investment is given in sub-section (5) of section 11 for accumulating the fund. Investment or deposits ..... X X X X Extracts X X X X X X X X Extracts X X X X
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