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TMI Blog2020 (1) TMI 1727X X X X Extracts X X X X X X X X Extracts X X X X ..... 15. 2. The grounds of appeal raised by the assessee reads as follows: 1. That the ld. CIT(A) was wrong in confirming the action of ld. A.O. by allowing exemption of @ 15% on the net receipt (Rs. 52,14,148/-) in place of gross receipt (Rs. 2,91,60,237/-) as per the provisions of section 11 of the Act. Hence confirming the imp A.O. is unjustified and needs to be deleted. 2. That the ld. CIT(A) was wrong in confirming the action of ld. A.O. by not allowing the depreciation to the assessee while calculating the application of funds. Therefore, the addition made by the ld. A.O. and confirmed by the ld. CIT(A) is unjustified and needs to be deleted. 3. That the assessee craves to leave or add, alter, amend or withdraw any or all of the gro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ions of sections 60 to 63, the following income shall not be included in the total income of the previous year of the person in receipt of the income- 35[(a) income derived from property held under trust wholly for charitable or religious purposes, to the extent to which such income is applied to such purposes in India; and, where any such income is accumulated or set apart for application to such purposes in India, to the extent to which the income so accumulated or set apart is not in excess of [fifteen] per cent of the income from such property; (b) income derived from property held under trust in part only for such purposes, the trust having been created before the commencement of this Act, to the extent to which such income is appl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as the case may be, held under trust in part, by any amount- (i) for the reason that the whole or any part of the income has not been received during that year, or (ii) for any other reason, then- (a) in the case referred to in sub- clause (i), so much of the income applied to such purposes in India during the previous year in which the income is received or during the previous year immediately following as does not exceed the said amount; and (b) in the case referred to in sub- clause (ii), so much of the income applied to such purposes in India during the previous year immediately following the previous year in which the income was derived as does not exceed the said amount, may, at the option of the person in receipt of the inco ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... deemed to have been applied to charitable or religious purposes to the extent specified hereunder, namely- (i) where the whole of the net consideration is utilised in acquiring the new capital asset, the whole of such capital gain; (ii) where only a part of the net consideration is utilised for acquiring the new capital asset, so much of such capital gain as is equal to the amount, if any, by which the amount so utilised exceeds the cost of the transferred asset; (b) where a capital asset, being property held under trust in part only for such purposes, is transferred and the whole or any part of the net consideration is utilised for acquiring another capital asset to be so held, then, the appropriate fraction of the capital gain arisi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... come", hence it is gross income of the assessee trust and not the net income. Therefore, based on this factual position as mentioned in Section 11(1) as noted above, we direct the Assessing Officer to allow 15% exemption on gross receipts. 6. In second ground the solitary issue is that the Assessing Officer did not allow the depreciation expenses to the assessee while calculating the application of funds. We note that Hon'ble Supreme Court in the case of Rajasthan Gujrati Charitable Foundation (2018) 402 ITR 441 (SC) held that amendment in section 11(1) brought by the Finance Act, 2014 w.e.f A.Y. 2015-16 which prohibited the allowance of depreciation is prospective in nature. That is amendment of the Finance Act, 2014, is applicable from A ..... X X X X Extracts X X X X X X X X Extracts X X X X
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