TMI Blog2022 (10) TMI 38X X X X Extracts X X X X X X X X Extracts X X X X ..... of depreciation. Income of a Charitable Trust derived form building, plant and machinery and furniture was liable to be computed in normal commercial manner although the Trust may not be carrying on any business and the assets in respect whereof depreciation is claimed may not be business assets. In all such cases, section 32 of the Income Tax Act providing for depreciation for computation of income derived from business or profession is not applicable. However, the income of the Trust is required to be computed under section 11 on commercial principles after providing for allowance for normal depreciation and deduction thereof from gross income of the Trust. This view was noticed with approval by the Hon ble Supreme Court in the cas ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or religious institutions are governed by almost the separate or independent provisions of section 11, 12, 12A, 12AA 13 and these provisions are independent code in itself in Chapter III of the Income Tax Act, 1961 and claim of depreciation under section 32 comes under Chapter IV of the Act under the head D - profit and Gains of Business or Profession and depreciation is allowed when capital assets are used for the purpose of business? D. Whether on the facts and in the circumstances of the case and in law, the Hon ble ITAT is right in allowing the appeal of the assessee by ignoring the fact that in the case of charitable or religious institutions, the assessee is not eligible for any type of depreciation as the entire expenditure ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 3. Learned counsel for the appellant fairly stated that the questions of law proposed as A, B and D were also raised in Income Tax Appeal No. 762 of 2016 and Income Tax Appeal No. 782 of 2016 for the earlier assessment years 2008-2009 and 2009-2010 were dismissed vide judgment and order dated 11th December 2018. However it was urged that the Tribunal had failed to decide one question which was raised before it. The said question of law reads as under :- 3. Whether on the facts and in the circumstances of the case and in law, the Ld CIT(A) was justified in allowing depreciation on an asset already treated as application of income. 4. However, it has been brought to our notice that the issue has been concluded by this Court in t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ity of income from profits and gains of business and section 29 provides that income from profits and gains of business shall be computed in accordance with section 30 to section 43C. That, section 32(1) of the Act provides for depreciation in respect of building, plant and machinery owned by the assessee 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 deductio ..... X X X X Extracts X X X X X X X X Extracts X X X X
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