2013 (2) TMI 773 - AT - Income Tax

Charitable Trust entitled to depreciation under Income Tax Act for AY 2007-08 and 2008-09

The Tribunal upheld the CIT(A)'s decision to allow depreciation claimed by a charitable trust for AY 2007-08 and 2008-09, dismissing the Revenue's ... - Issues involved: Appeal against orders of CIT(A) regarding disallowance of depreciation for AY 2007-08 & 2008-09.For AY 2007-08:The Revenue appealed against the deletion of depreciation disallowance of Rs. 49,98,000. The main issue was whether a charitable trust is entitled to claim depreciation u/s 32 of the Income Tax Act, even if its income is not assessable under the head 'profit and Gains from business and profession.' The Revenue argued against the deletion, citing a Kerala High Court decision, while the assessee relied on a Gujarat High Court judgment in their favor. The Tribunal referred to previous decisions and upheld the CIT(A)'s order, dismissing the Revenue's appeal.For AY 2008-09:The grounds raised by the Revenue were identical to those in the AY 2007-08 appeal. Since the issues were already discussed and decided in the previous appeal, the Tribunal took a consistent view and dismissed the Revenue's appeal for AY 2008-09 as well.In both cases, the Tribunal found in favor of the assessee, upholding the CIT(A)'s decision to allow the depreciation claimed by the charitable trust. The Tribunal referred to relevant case law and previous decisions to support its ruling. As a result, both appeals by the Revenue were dismissed.