TMI Blog2016 (12) TMI 676X X X X Extracts X X X X X X X X Extracts X X X X ..... not have application for the years prior to AY 2015-16. - Decided in favour of assessee - ITA No.1662/Bang/2016 - - - Dated:- 2-12-2016 - SHRI GEORGE GEORGE K, JUDICIAL MEMBER For The Assessee : Shri. Chavali Narayan, CA For The Revenue : Ms. S. Praveena, Addl. CIT ORDER Per George George K, JM : This appeal at the instance of assessee is directed against the order of CIT(A) dated 14.7.2016. The relevant AY is 2012-13. 2. Though several grounds are raised, all the grounds relates to the solitary issue whether the CIT(A) is justified in confirming the AO s action in disallowing the depreciation on the assets, the cost of which was claimed as application. 3. Briefly stated, the facts of the case are as fol ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Accion Technical Advisors India Vs. The Asst. Director of Income- Tax (Exemptions), Bangalore in ITA No.907/Bang/2014 (order dated 30.9.2015.) 6. I have heard the rival submission and perused the material on record. Tribunal in the case of Accion Technical Advisors India Vs. The Asst. Director of Income-Tax (Exemptions), Bangalore (supra), held that the assessee was entitled to the benefit of depreciation irrespective whether the cost of the said asset on which the depreciation is claimed has been allowed as an application of income in the previous years. The tribunal had taken note of the amendment effected by the Finance (No. 2) Act, 2014 w.e.f 1.4.2015 and held the amendment is prospective and does not have application for the years ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a decrease in the value of property through wear, deterioration, or obsolescence. Since income for the purposes of section 11(1) has to be computed in normal commercial manner, the amount of depreciation debited in the books is deductible while computing such income. It was so held by the Hon ble Karnataka High Court in the case of CIT Vs. Society of Sisters of St. Anne 146 ITR 28 (Kar). It was held in CIT vs. Tiny Tots Education Society (2011) 330 ITR 21 (P H), following CIT vs.Market Committee, Pipli (2011) 330 ITR 16 (P H) : (2011) 238 CTR (P H) 103 that depreciation can be claimed by a charitable institution in determining percentage of funds applied for the purpose of charitable objects. Claim for depreciation will not amount to doubl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ociety of Sisters of Anne, 146 ITR 28 (Kar), wherein it was held that u/s. 11(1) of the Act, income has to be computed in normal commercial manner and the amount of depreciation debited in the books is deductible while computing such income. In view of the aforesaid decision on the issue, we are of the view that the order of the CIT(A) on the above issue does not call for any interference. 22. Consequently, ground No.5 raised by the revenue is dismissed. 11. We may also add that the legal position has since been amended by a prospective amendment by the Finance (No.2) Act, 2014 w.e.f. 1.4.2015 by insertion of sub-section (6) to section 11 of the Act, which reads as under:- (6) In this section where any income is required ..... X X X X Extracts X X X X X X X X Extracts X X X X
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