TMI Blog2013 (5) TMI 934X X X X Extracts X X X X X X X X Extracts X X X X ..... ion of Escorts Ltd. v/s. UOI 199 ITR 43 wherein it was held that since section 11 of the I.T. Act provides for deduction capital expenditure incurred on an asset acquired for the objects of the trust as application and does not specifically it expressly provide for double deduction on account of depreciation on the same very assets acquired from such capital expenditure, no deduction shall be allowed u/s 32 for the same or any other previous year in respect of that asset as it amounts to claiming a double deduction. 2. Whether on the facts of the case and in law the Ld. CIT(A) erred in allowing the accumulation or setting apart of 15% of income of ₹ 49,23,920/-, as the assessee has expended the entire income towards object of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Banking Personnel Selection, 264 ITR 110(Bom). However, the AO did not accept the assessee s contention and disallowed the claim of depreciation of ₹ 70,19,745/-. Being aggrieved, assessee filed appeal before ld CIT(A). Ld CIT(A) relying on the judgment of Hon ble Bombay High Court in the case of Institute of Banking Personnel Selection (supra) deleted the addition on account of disallowance of depreciation on assets. Hence, this appeal by the department. 3. At the time of hearing, ld D.R. dutifully relied on the order of AO and whereas ld A.R. supported the order of ld CIT(A). 4. We have considered submissions of ld representatives of parties and orders of authorities below. We observe that there is no reason to interfere wi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... income derived from the property held for religious or charitable purposes is deductible from the income. It was submitted that there is no bar in law and there are no specific provisions in the Act which says that such deduction of 15% for accumulation will not be allowed in case of deficit. Such 15% accumulation is allowable irrespective of whether 85% of the income have been applied to charitable purposes or not. Ld CIT(A) after considering the submission of assessee stated that AO is not justified in denying the claim of the assessee for the accumulation of income and, accordingly, allowed the claim of the assessee. Being aggrieved, department is in appeal before the Tribunal. 7. We observe that ld CIT(A) has allowed the claim of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Addl. CIT vs. A. I N. Rao Charitable Trust (1995) 129 CTR 205, wherein it is held that exemption available u/s 11(1)(a) i.e. 15% of income is unfettered and not subject to any conditions. 6.4 Considering all the above factual position as well as the case laws referred as above, I consider it proper and appropriate to hold that the A.O. was rot justified in denying the claim of the appellant for the accumulation of income. Accordingly this ground of appeal is allowed. 8 We observe that ld CIT(A) has relied on the decision of Hon ble Supreme Court in the case of A.I.N. Rao Charitable Trust (supra), wherein , it is held that exemption available u/s.11(1)(a) i.e. 15% of income is unfettered and not subject to any conditions. In the case ..... X X X X Extracts X X X X X X X X Extracts X X X X
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