TMI Blog2018 (3) TMI 1461X X X X Extracts X X X X X X X X Extracts X X X X ..... Decided in favour of assessee - ITA No. 1908/Ahd/2016 - - - Dated:- 22-3-2018 - Pramod Kumar AM And Rajpal Yadav JM Saurabh Singh for the Appellant Manthan S. Khokhani for the Respondent ORDER Per Pramod Kumar, AM 1. This appeal, filed by the Revenue, is directed against learned CIT(A)-9, Ahmedabad s order dated 20th May 2016 in the matter of assessment under Section 143(3) of the Income-tax Act, 1961, for the assessment year 2012-13. 2. The grievance raised by the Assessing Officer is as follows:- Whether on the facts and in the circumstances of the case the Ld. CIT(A) is justified in allowing the assessee s appeal neglecting the finding of Assessing Officer regarding addition of ₹ 66,11,344/- being ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s, the CIT (Appeals) had affirmed the view, but the ITAT reversed the same and the High Courts have accepted the decision of the ITAT thereby dismissing the appeals of the Income Tax Department. From the judgments of the High Courts, it can be discerned that the High Courts have primarily followed the judgment of the Bombay High Court in 'Commissioner of Income Tax v. Institute of Banking Personnel Selection (IBPS)' [(2003) 131 Taxman 386 (Bombay)]. In the said judgment, the contention of the Department predicated on double benefit was turned down in the following manner: 3. As stated above, the first question which requires consideration by this Court is: whether depreciation was allowable on the assets, the cost of which has ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and used for business purposes. It further provides for deduction subject to section 34. In that matter also, a similar argument, as in the present case, was advanced on behalf of the revenue, namely, that depreciation can be allowed as deduction only under section 32 of the Income Tax Act and not under general principles. The Court rejected this argument. It was held that normal depreciation can be considered as a legitimate deduction in computing the real income of the assessee on general principles or under section 11(1)(a) of the Income Tax Act The Court rejected the argument on behalf of the revenue that section 32of the Income Tax Act was the only section granting benefit of deduction on account of depreciation. It was held that inco ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... owever, took the view that when the ITO stated that full expenditure had been allowed in the year of acquisition of the assets, what he really meant was that the amount spent on acquiring those assets had been treated as 'application of income' of the Trust in the year in which the income was spent in acquiring those assets. This did not mean that in computing income from those assets in subsequent years, depreciation in respect of those assets cannot be taken into account. This view of the Tribunal has been confirmed by the Bombay High Court in the above judgment. Hence, Question No. 2 is covered by the decision of the Bombay High Court in the above Judgment. Consequently, Question No. 2 is answered in the Affirmative i.e., in favo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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