9911796707
TMI Blog2023 (7) TMI 1270X X X X Extracts X X X X X X X X Extracts X X X X ..... al:- "1. On the basis of facts and circumstances of the case and in law, the Ld.CIT(A) has erred in ignoring the fact in deleting the addition of Rs. 2,88,10,953/- made by AO on account of disallowance of 50% of expenses excluding Travelling and Conveyance and Rs. 14,46,958/- made by AO on account of Travelling and Conveyance, ignoring the fact that the assessee had not produced books of accounts along with original bills and vouchers for examination before the AO during the course of assessment proceedings despite the fact that so many opportunities were provided to the assessee. 2. On the basis of facts and circumstances of the case and in law, the Ld. CIT(A) has erred in ignoring the fact in deleting the addition of Rs. 2,16,72,420/- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f business or profession as provided u/s 32(1). 6. On the facts and in circumstances of the case, whether the Ld.CIT(A) was correct in not appreciating the fact that allowance of depreciation on the assets tantamount to double deduction firstly in the form of allowing application of income in the year(s) of acquisition/purchase of assets and secondly in the form of depreciation allowance over a period of usage of assets/several assessment years. 7. Whether the CIT(A) was correct in allowing the depreciation claim of assessee, when the legislature, by way of amendment made w.e.f.- 01.04.2015, conveyed its intention not to allow double deduction, one by way of application and another by way of depreciation on the same assets, cost of whic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Aggrieved by the deletion of the above two additions, the Revenue preferred the present appeal on the grounds mentioned above. 4. Ground No. 1 is regarding deletion of addition of Rs. 2,88,10,953/- made by the A.O. on account of disallowance of 50% expenses including travelling and conveyance and Rs. 14,46,958/- made on account of travelling and conveyance. The Ld. Assessee's Representative submitted that the CIT(A) has ignored the fact that the assessee has not produced books of account along with original bills and vouchers for examination before the A.O. despite providing opportunities, therefore submitted that deletion of the addition by the CIT(A) requires to be reversed. 5. The Ld. Counsel for the assessee submitted that expens ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ling and conveyance. Accordingly we find no merit in the Ground No. 1 of the Revenue and the Ground No. 1 of the Revenue is dismissed. 7. Ground No. 2 to 8 are regarding deletion of the addition of Rs. 2,16,72,420/- made by the A.O. on account of disallowance of depreciation. The Ld. Departmental Representative submitted that the CIT(A) committed error by ignoring the fact that the assessee is a religious institution are governed by the separate or independent provisions and in Chapter III of the Act and the depreciation u/s 32 Act is under Chapter IV of the Act under the head D profit and gain of business or profession and the depreciation is allowed with capital asset are used for purpose of business. The Ld. Departmental Representative ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the provisions of sections 11, 12, 12A, 12AA and 13 under Chapter III of the Income-tax Act. These sections constitute a complete code governing the registration, providing exemption of income and also conditions subject to which a charitable grant, cancellation or withdrawal of trust or institution is required to function in order to be eligible for exemption. Section 11(1)(a) provides for exemption to the extent income derived from the property held under trust is applied for charitable purposes. Subject to fulfillment of conditions laid down in section 11, exemption is available in respect of income irrespective of whether the expenditure incurred is revenue or capital in nature. Hence, exemption is available even when the income is app ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... haritable purpose." 4.3.4 There are many conflicting judgments of various Hon'ble High Courts, including that of the jurisdictional High Court, both in favour and against allowability of depreciation. The Hon'ble Delhi High Court, in the case of Director of Income Tax (Exemption) vs. Charanjiv Charitable Trust [2014] 267 CTR 305, have held that if the cost of the asset has been allowed as deduction by way of application of income, then depreciation on the same asset cannot be allowed in computation of income of the trust (Para 30). However, in a subsequent decision, the Hon'ble Delhi High Court, in the case of DIT(Exemption) vs. Indraprastha Cancer Society in ITA No. 240, 348, 406, 463 & 464/2014 vide the order dated 18.11.201 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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