TMI Blog2017 (11) TMI 1563X X X X Extracts X X X X X X X X Extracts X X X X ..... ar, Assistant Commissioner of Income-Tax For the Respondent : None appeared ORDER Sunil Kumar Yadav (Judicial Member) 1. This appeal is preferred by the assessee against the order of the Commissioner of Income-tax (Appeals), inter alia, on the following grounds : Disallowance of depreciation (i) The Commissioner of Income-tax (Appeals) has failed to appreciate the fact that the hon'ble Kerala High Court in the case of Lissie Medical Institutions v. CIT [2012] 348 ITR 344 (Ker) has held that depreciation cannot be allowed on assets, where cost of such assets has already been allowed as application of income in the year of acquisition/purchase of asset. (ii) Though the Finance Act, 2014 has amended the In ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d as per the normal provisions and the amount of depreciation debited in the books is deductable while computing such income. 3. We have carefully examined the orders of the authorities below and the judgments referred to in the paper books and we find that the impugned issue is squarely covered by the judgments of the hon'ble jurisdictional High Court. Therefore, we decided to proceed with the hearing. Accordingly, the Revenue was heard. 4. On careful perusal of the orders of the lower authorities, we find that the Assessing Officer has disallowed the depreciation claimed by the assessee on the ground that it amounts to be double deduction as the assessee has claimed the exemption under section 11 of the Act. The assessee preferr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the trust property would be allowed. Also notwithstanding the Revenue's contention to the contrary, there is nothing in section 11 which debars a charitable institution from maintaining accounts on mercantile basis. That apart, if depreciation is not allowed as a necessary deduction for computing the income of the charitable institutions, then there is no way to preserve the corpus of the trust for deriving the income. Accordingly, the amount of depreciation debited to the expenditure account should be deducted to arrive at the assessee's income available for application for charitable and religious purposes'. 7.4 A similar view in the matter was also taken by the hon'ble Income-tax Appellate Tribunal, Bangalore, in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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