TMI Blog2019 (1) TMI 2008X X X X Extracts X X X X X X X X Extracts X X X X ..... table or religious purpose. Subsequently, an explanation was inserted which would come into effect from 01.04.2019 by the Finance Act, 2018 which would clearly indicate that the application under Clause(a) or Clause(b), the provisions of sub-clause(ia) of clause (a) of Section 40 and sub-sections (3) and (3A) of Section 40A, shall, mutatis mutandis, apply as they apply in computing the income chargeable under the head Profits and gains of business or profession . Therefore it clearly indicates that the same would stand applicable only from 01.04.2019. Therefore, the contention of the Revenue cannot be accepted. Hence, we hold that the Tribunal was justified in holding the said issue in favour of the Assessee and against the revenue. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al at Mysuru, in collaboration with M/s. Appolo Hospital Enterprises Limited (AHEL), Chennai. 3. The Assessee filed its return of income on 31.10.2006 admitting a total income of Rs.nil. The return of Income was processed under Section 143(1) by the Income Tax Officer, Mandya. The case was selected for scrutiny in accordance with the scrutiny guidelines issued by the Central Board of Direct Taxes. Notice under Section 143(2) was issued and served on the assessee on 23.08.2007. In response to the same, the Internal Auditor has appeared and represented the case and produced various documents and books of account for verification. 4. On the question of depreciation, the Trust had claimed deduction towards depreciation allowance amountin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... NNE reported in 146 ITR 28 and held that the depreciation is to be deducted, to arrive at an income available to charitable or religious purposes. 7. So far as Section 40(a)(ia) is concerned, the Tribunal once again relied on the judgment of St. Anne s case and also on the judgment of the Calcutta High Court in the case of DIRECTOR OF INCOME TAX (E) VS. GIRIDHARILAL SHEWNARAIN TANTIA TRUST reported in 199 ITR 215 and the judgment of the Madras High Court in the case of COMMISSIONER OF INCOME TAX VS. RAO BAHADUR CALAVALA CUNNAN CHETTY CHARITIES (1982) reported in 135 ITR 485 and held that, in the case of a trust, income will have to be calculated in a commercial manner and it is not to be computed under the Income Tax Act. Hence, it was a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... question of law considered by the Hon ble Supreme Court was, when the Income Tax Officer states 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 the income of the Trust in the year in which the income was spent in acquiring those assets. Therefore, it had been meant that in computing the income from those assets in the 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. Therefore, the first substantial question of law held in favour of the assessee and against the Revenue. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... here an assessee fails to deduct the whole or any part of the tax in accordance with the provisions of Chapter XVII-B on any such sum but is not deemed to be an assessee in default under the first proviso to sub-section (1) of section 201, then, for the purpose of this subclause, it shall be deemed that the assessee has deducted and paid the tax on such sum on the date of furnishing of return of income by the resident payee referred to in the said proviso.] 13. The aforesaid section would be applicable to the amount chargeable under the head Profit and gain of the business or profession . Section 11 is with regard to the income from property held for charitable or religious purpose. Subsequently, an explanation was inserted which would ..... X X X X Extracts X X X X X X X X Extracts X X X X
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