TMI Blog2013 (7) TMI 1209X X X X Extracts X X X X X X X X Extracts X X X X ..... 2011 A.Y. 2007-08 2. The Revenue has raised 3 substantive grounds of appeal. Ground No. 1 2 relate to allowability of depreciation on fixed assets. 3. At the very outset, the Ld. Counsel for the assessee submitted that the issue raised vide ground No. 1 2 are squarely covered in favour of the assessee by the decision of the Hon ble Jurisdictional High Court in the case of CIT Vs Institute of Banking Personnel Selection 264 ITR 110. 4. The Ld. Departmental Representative fairly conceded. 5. We have carefully perused the order of the Hon ble Jurisdictional High Court. We find force in the submissions of the Ld. Counsel. The question before the Hon ble High Court for consideration was whether depreciation was allowable on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and whether such adjustment should be treated as application of income in subsequent year for charitable purposes to which the Hon ble High Court observed that income derived from the trust property has also got to be computed on commercial principles and if commercial principles are applied then adjustment of expenses incurred by the trust for charitable and religious purposes in the earlier years against the income earned by the trust in the subsequent year will have to be regarded as application of income of the trust for charitable and religious purposes in the subsequent year in which adjustment has been made having regard to the benevolent provisions contained in section 11 of the Act and that such adjustment will have to be excluded ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed income of rent received of Rs. 14,72,376/- and Rs. 60,000/- respectively, and as per the provisions of Chapter IV-C of the Income Tax, Act, i.e. under the income from house property claimed deduction u/s. 24 @ 30%. We observe that there is no provision of Income Tax Act that if the property of the assessee trust is held for charitable purposes, no deduction u/s. 24 would be available. Section 24 itself allows deduction of 30% of rental income. Hence, we are of the considered view that Ld. CIT(A) has rightly directed the AO to allow the claim of the assessee. Ld. DR has not pointed out any decision or made submissions contrary to the observation made by Ld. CIT(A). We, therefore, reject the grounds of appeal taken by department and uphold ..... X X X X Extracts X X X X X X X X Extracts X X X X
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