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TMI Blog2014 (10) TMI 967X X X X Extracts X X X X X X X X Extracts X X X X ..... ation on fixed assets of Rs. 83,15,210/- in contravention of the decision of Escorts Ltd. Vs UOI 199 ITR 43 wherein it was held that since Sec. 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 & 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 carry forward of deficit and allowing set off against the income of the subse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the assets have outlived their useful life, the assessee should have sold them as scrap. No evidence in support of this has been filed, the AO accordingly disallowed the claim of depreciation of Rs. 83,15,310/-. 3.2. Proceeding further, the AO noticed that there was a deficit of Rs. 2,04,79,427/- appearing in the computation of income furnished by the assessee. The deficit was on account of excess expenditure claimed over the revenue. Drawing support from the decision of the Hon'ble Supreme Court in the case of Escorts Ltd. Vs UOI 199 ITR 43, the AO declined to allow the claim of the assessee to treat the deficit of Rs. 2,04,79,427/- as application of income for enjoying exemption in the successive year. 4. Aggrieved by these two findin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lower authorities. 8. In so far as the claim of additional depreciation of Rs. 83,15,310/- is concerned, we find that the assessee has given sufficient reasons for claiming the same, in support, certificates were filed which were also before the lower authorities. The assessee is running a hospital. The assets which have outlived their lives cannot be sold as scrap as per the rules governing the hospital, the assessee was left with no choice but to claim the same as additional depreciation. The Hon'ble High Court of Bombay in the case of Institute of Banking Personnel Selection (supra) has laid down the ratio that the income of the Trust is required to be computed u/s. 11 on commercial principles. As the Ld. CIT(A) has allowed the claim d ..... X X X X Extracts X X X X X X X X Extracts X X X X
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