Tribunal Upholds CIT(A)'s Decision on Depreciation for Charitable Trust

The Tribunal upheld the decision of the ld. CIT(A) and dismissed the Revenue's appeal regarding the allowability of depreciation on fixed assets for a public charitable trust, emphasizing the principle of adopting the interpretation favoring the assessee in case of conflicting judicial precedents. The Tribunal found no infirmity in the order passed by the ld. CIT(A) and noted the lack of material provided by the Revenue to show modification or reversal of the Tribunal's decision by higher courts.

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Issues Involved:
Allowability of depreciation on fixed assets for a public charitable trust when the entire cost of assets has already been claimed as application of income towards trust's objects.

Analysis:

Issue 1: Allowability of Depreciation on Fixed Assets
- The appeal was filed by the Revenue against the order of the Commissioner of Income Tax (Appeals) concerning the claim of depreciation by a public charitable trust.
- The Assessing Officer denied the claim of depreciation, stating that claiming depreciation on assets already considered as application of income towards trust's objects results in double deduction.
- The ld. CIT(A) directed the Assessing Officer to allow the depreciation claim, relying on previous decisions of the ITAT in similar cases.
- The Tribunal considered the conflicting decisions of different High Courts and previous Tribunal judgments on the issue of depreciation for trusts.
- The Tribunal referred to a specific case where it was held that in cases of divergent judicial precedents, the one favoring the assessee should be adopted.
- The Tribunal found no infirmity in the order passed by the ld. CIT(A) and dismissed the appeal filed by the Revenue, as the Revenue failed to provide any material showing modification or reversal of the Tribunal's decision by higher courts.

Conclusion:
The Tribunal upheld the decision of the ld. CIT(A) and dismissed the Revenue's appeal regarding the allowability of depreciation on fixed assets for a public charitable trust, emphasizing the principle of adopting the interpretation favoring the assessee in case of conflicting judicial precedents.

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