TMI Blog2019 (9) TMI 485X X X X Extracts X X X X X X X X Extracts X X X X ..... capital expenditure is also entitled to the depreciation while working out the income of the charitable institution having valid registration under section 12A of the Act. There is an amendment u/s 11(6) which restricts the claim of the assessee for both the benefit/deduction, i.e. capital expenditure as well as depreciation thereon. As such as per the amendment the assessee is entitled to the deduction on account of depreciation in respect of such capital expenditures which were not claimed as 100% deduction u/s 11(1)(a). This amendment is applicable with effect from 1.4.2015 and the year under consideration before us is the assessment year 2013-14. Thus this amendment is not applicable for the year under consideration. No infirmity ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Tax (Appeals)-9, Ahmedabad, [ Ld.CIT (A) in short] dated 14/09/2017 arising in the matter of assessment order passed under s. 143(3) of the Income Tax Act, 1961 (here-in-after referred to as the Act ) dated 09/12/2015 relevant to the Assessment Year (AY) 2013-14. 2. The Revenue has raised the following grounds of appeal: 1. The Ld.CIT(A) has erred in law and on facts in allowing the depreciation of ₹ 11,05,73,991/- to the assessee which amounts to double deduction as 100% deduction was allowed to the assessee as application of income. 2. The Ld.Commissioner of Income Tax (Appeals) has erred in law and on facts in directing the AO to grant exemption to the assessee u/s.11(1)(a) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f section 11 to 13 of the Act. Accordingly, the provisions as applicable to the business income as specified under the provisions of section 28 to 44DA of the Act do not apply to it. 5.1 The assessee also claimed that in the earlier assessment year 2011-12, the learned CIT (A) allowed the depreciation claimed by it on the capital expenditure. Similarly, there was no disallowance of the depreciation on the capital expenditure incurred by it for the assessment year 2012-13. 6. The learned CIT (A) after considering the submission of the assessee deleted the addition made by the AO. Accordingly, the learned CIT-A allowed the appeal of the assessee. 7. Being aggrieved by the order of the learned ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... asthan and Gujarati Charitable Foundation Poona reported in 402 ITR 441 wherein the headnote reads as under: IT : In case of assessee-charitable institution registered under section 12A, even though expenditure incurred for acquisition of capital assets was treated as application of income for charitable purposes under section 11(1)(a), yet depreciation would be allowed on assets so purchased (Position prior to 1-4-2015) In view of the above, there remains no doubt that the assessee besides the cost of capital expenditure is also entitled to the depreciation while working out the income of the charitable institution having valid registration under section 12A of the Act. 9.3 There is an a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee is entitled to a deduction under section 11(1)(a) of the Act. Accordingly, we are of the view there is no infirmity in the direction provided by the learned CIT (A). The learned DR has also not brought anything on record contrary to the finding of the learned CIT (A). Therefore we do not find any reason to interfere in the order of the learned CIT (A). Hence the ground of appeal of the Revenue is dismissed. 12. The last issue is general, and no separate adjudication is required. Therefore we dismiss the same as infructuous. 13. In the result, the appeal of the Revenue is dismissed. Order pronounced in the Court on 10/04/2019 at Ahmedabad. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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