TMI Blog2020 (12) TMI 680X X X X Extracts X X X X X X X X Extracts X X X X ..... , 12 and 13 had not been violated - HELD THAT:- There are several factual aspects, which have been missed out by the Assessing Officer to be taken into consideration and we cannot be called upon to take a decision in the abstract without examining the foundation facts for their correctness. Considering all the aspects, we deem it appropriate that the matter should be remanded to the Assessing Officer for a fresh consideration. For all the above reasons, the tax case appeal filed by the assessee is allowed, the impugned order passed by the Tribunal and the orders passed by both the Assessing Officer and the CIT(A) are set aside so far as substantial questions of law 1, 3 and 4 are concerned and the matter is remanded to the Assessing Offi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in not adjudicating the grounds of appeal No.3 pertaining to disallowance of depreciation ? 3. Whether the Tribunal was right in law in holding that the appellant is not entitled to deduction under Section 11 of the Act since the amount given to another charitable trust to construct building violates the provisions of Sections 13(1)(c) and 13(1)(d) read with Section 11(5)? and 4. Whether the Tribunal erred in law in not appreciating that the amount given by the appellant trust to another charitable trust with similar objects for carrying out the object of the other trust cannot be considered as investment or parking of funds of the trust, which violated the provisions of Sections 13(1)(c) and 13(1)(d) read with Section 11(5)? ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... from the other institution/trust. 7. The assessee contended that the amount had been given to another charitable institution for educational purposes to enable them to construct a building as part of their college and that the same could not be considered as investment and hence, the provisions of Sections 11, 12 and 13 had not been violated. The assessee further contended that the money was refunded by way of direct payment to the contractor, who constructed the building for the institution and that the institution could not be considered as a related person for the purpose of Sections 13(1)(c) and 13(1)(2) of the Act. The assessee also contended that the loan given to another charitable trust with similar objects for carrying out the o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sel for the Revenue that the issue is clearly covered in favour of the assessee by the decision of the Hon'ble Supreme Court in the case of CIT Vs. Rajasthan and Guajrati Charitable Foundation [reported in (2018) 402 ITR 441] wherein it was held that normal depreciation could 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 Act. Thus, applying the said decision, substantial question of law No.2 is answered in favour of the assessee. 11. With regard to substantial question of law Nos.1, 3 and 4, all relate to the same fact situation namely the amount, which was given to another trust, was stated to be for the purpose of putting up the co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ore the CIT(A) that the amounts were directly paid to the contractor, who constructed the building for the college. Another argument, which was placed, was that even assuming that it has to be treated as a loan, the amount given by the assessee to the other trust with similar objects for carrying out the object of other trust could not be considered as investment or parking of funds of the trust, but, in fact, should be considered as an application for carrying out the objects of the assessee trust. This argument was not considered. 15. In fact, the assessee would place reliance on the decision of the Delhi High Court in the case of Director of Income Tax (Exemptions) Vs. ACME Educational Society [reported in (2010) 326 ITR 0146] whe ..... X X X X Extracts X X X X X X X X Extracts X X X X
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