2016 (5) TMI 1389 - HC - Income Tax

High Court dismisses appeal on Income Tax Tribunal's depreciation ruling for Assessment Year 2007-08

The High Court of Bombay dismissed the appeal challenging the Income Tax Appellate Tribunal's order for the Assessment Year 2007-08 on depreciation and ... Depreciation claim to assessee trust - Held that:- Allowability of depreciation on capital assets acquired for the purposes of carrying out charitable activities and set off of deficit of earlier years against income of the current year. The impugned order in fact followed decision of this Court in CIT v/s. Institute of Banking Personnel Services [2003 (7) TMI 52 - BOMBAY High Court] while holding in favour of the Respondent-Assessee. Issues:1. Challenge to the order of the Income Tax Appellate Tribunal for the Assessment Year 2007-08 regarding depreciation and carry forward of deficit.Analysis:The High Court of Bombay heard an appeal challenging the Tribunal's order on two main issues: the allowability of depreciation on capital assets for charitable activities and the set off of earlier years' deficit against current year's income. The Revenue raised questions regarding the Tribunal's decision to allow depreciation and carry forward of deficit, citing a Supreme Court judgment on double deduction. However, the Tribunal's order was based on a previous decision of the High Court in a similar case. The Revenue's counsel acknowledged that the issue had been settled by the High Court's previous decision. Consequently, the High Court found that the questions raised did not present any substantial legal issue and dismissed the appeal without costs.