9911796707
TMI Blog2017 (12) TMI 987X X X X Extracts X X X X X X X X Extracts X X X X ..... charitable trusts with objects to provide education by running several educational institutions. Both the Assessee's filed their return of income for AY 2008-09. Both the Assessee's in their return of income had claimed depreciation on certain assets. The cost of those assets on which depreciation was claimed by the Assessee had been claimed by the Assessee as application of income for charitable purpose and allowed as application of income for chartiable purpose by the AO in the year of acquisition. The AO allowed depreciation as claimed by the Assessee in an order of assessment passed u/s.143(3) of the Act dated 28.12.2010. 3. The CIT in exercise of his powers u/s.263 of the Act was of the view that the aforesaid two orders of assessmen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... following the ratio laid down in the case of Escorts Ltd. (supra), the claim for deduction on account of depreciation should be disallowed. 4. The CIT therefore passed two orders u/s.263 of the Act in the case of the two Assessees both dated 29.2.2012 directing the AO to disallow claim for depreciation. The CIT also referred to the decision of the Hon'ble High Court of Kerala in the case of DDIT(E) v. Lissie Medical Institutions, 348 ITR 344 (Ker) wherein it was held that allowing depreciation of a depreciable asset when the cost of acquisition of depreciable asset was allowed as application of income for charitable purpose amounts to double depreciation and therefore depreciation cannot be allowed. 5. Pursuant to the order of the CI ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r u/s.263 of the Act. It was also submitted by the Learned DR that the issue has not attained finality and the revenue has filed appeals against the order of the Hon'ble Karnataka High Court. 9. We have considered the submission of the learned DR and are of the view that as on today the disallowance of depreciation as done by the revenue pursuant to proceedings u/s.263 of the Act, cannot be sustained in view of the quashing of the said orders by the Tribunal. The Hon'ble High Court of Karnataka has also upheld the decision of the Tribunal. In such circumstances, we are of the view that there is no merit in these appeals by the Revenue and they are liable to be dismissed. The disallowance of depreciation cannot be sustained. 10. In the res ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
