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TMI Blog2016 (12) TMI 676X X X X Extracts X X X X X X X X Extracts X X X X ..... was claimed as application. 3. Briefly stated, the facts of the case are as follows: The assessee is a religious trust registered under section 12AA of the Income Tax Act. For the AY 2012-13, the return of income was filed on 5.9.2012 declaring a total income at "Nil" after claiming exemption under section 11 of the Income Tax Act. In the statement of accounts, the assessee had claimed depreciation on the assets acquired by it during the relevant previous year as well as in the immediately previous year amounting to Rs. 34,31,683/-. The assessment was taken up for scrutiny by issuance of notice under section 143(3) of the Act and scrutiny assessment under section 143(3) of the Act was completed vide order dated 20.2.2015. In the assessmen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mendment is prospective and does not have application for the years prior to AY 2015-16. The tribunal had also considered the judgment of the Hon'ble High Court of Kerala in the case of Lissie Medical Institutions Vs. CIT reported in 348 ITR 344 (2012). The relevant findings of the tribunal in the case of Accion Technical Advisors India Vs. The Asst. Director of Income-Tax (Exemptions), Bangalore (supra), reads as follows: "10. We have heard the submissions of the ld. DR, who relied on the order of AO. We have considered the order of the AO. Identical issue came up for consideration before ITAT Bangalore Bench in the case of DDIT(E) v. Cutchi Memon Union (2013) 60 SOT 260 Bangalore ITAT, wherein similar issue has been dealt with by this Tr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... table objects. Claim for depreciation will not amount to double benefit. The decision of the Hon'ble Supreme Court in the case of Escorts Ltd. 199 ITR 43 (SC) have been referred to and distinguished by the Hon'ble Court in the aforesaid decisions. 21. The issue raised by the revenue in the ground of appeal is thus no longer res integra and has been decided by the Hon'ble Punjab & Haryana High Court in the case of CIT v. Market Committee, Pipli, 330 ITR 16 (P&H). The Hon'ble Punjab & Haryana High Court after considering several decisions on that issue and also the decision of the Hon'ble Supreme Court in the case of Escorts Ltd. (supra), came to the conclusion that depreciation is allowable on capital assets on the income of the charitabl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... "(6) In this section where any income is required to be applied or accumulated or set apart for application, then, for such purposes the income shall be determined without any deduction or allowance by way of depreciation or otherwise in respect of any asset, acquisition of which has been claimed as an application of income under this section in the same or any other previous year." 12. As already stated, the aforesaid amendment is prospective and will apply only from A.Y. 2015-16. In view of the above legal position, we are of the view that the order of the CIT(A) in so far as it relates to allowing depreciation on opening WDV has to be confirmed but has to be reversed in so far as it relates to not allowing depreciation on the closing W ..... X X X X Extracts X X X X X X X X Extracts X X X X
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