Court upholds depreciation for charitable trust, dismissing Revenue's appeal.

The Revenue's appeal against the order of ld. CIT(A) regarding the disallowance of depreciation for a charitable trust was dismissed by the Hon'ble Gujarat High Court. The court upheld the Tribunal's decision allowing depreciation and deductions, citing previous rulings and legal interpretations in favor of the assessee. The issue of double deduction and the eligibility of a charitable trust for depreciation u/s 32 were addressed, with the court affirming the trust's entitlement to the claimed benefits.

---

---

Issues involved: Appeal against order of ld. CIT(A)-XXI, Ahmedabad dated 20.09.2012 regarding disallowance of depreciation and availability of depreciation u/s 32 for a charitable trust.

The Revenue's appeal challenged the deletion of depreciation disallowance of Rs. 35,72,478/- by the A.O. The issue was whether depreciation on assets, already deducted on account of income application, would lead to double deduction, citing the decision in Escorts Ltd. 199 ITR 43. Additionally, the question arose whether a charitable trust, not assessable under "profit and gains from business and profession," could claim depreciation u/s 32.

The decision of Hon'ble Gujarat High Court in Tax Appeal No.439 of 2012 favored the assessee, following the stand taken in Director of Income Tax (Exemption) vs. Ahmedabad South Indian Charitable Trust. The High Court upheld the Tribunal's decision regarding the allowance of depreciation and deductions for the relevant assessment years. The Tribunal's stance against the Revenue's challenge was consistent with previous rulings, dismissing the appeal and confirming the allowance of depreciation and deductions.

In conclusion, the Revenue's appeal was dismissed based on the precedent set by the Hon'ble High Court and the Tribunal's consistent decisions in similar cases. The Tribunal's decision to allow depreciation and deductions for the charitable trust stood, as per the established legal interpretations and precedents.

---