Tribunal Upholds Depreciation Claims for Trust's Assets, Dismissing Revenue's Appeals for 2008-11 Tax Years.

The Tribunal dismissed all five appeals filed by the Revenue concerning the assessment years 2008-09, 2009-10, and 2010-11, regarding the allowability of depreciation on fixed assets acquired for the Trust's objectives. The Tribunal ruled in favor of the assessee, supporting the decision of the CIT (A) to allow the claim for depreciation. This decision was influenced by precedents from the Bombay HC and Punjab and Haryana HC, which validated the inclusion of depreciation in computing the trust's income. The Tribunal found the CIT (A)'s decision reasonable and fair, leading to the dismissal of all grounds raised by the Revenue.

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Issues:
- Allowability of claim of depreciation on fixed assets acquired for the objects of the Trust.

Analysis:
The judgment involves five appeals filed by the Revenue concerning the assessment years 2008-09, 2009-10, and 2010-11. The issues raised in all the appeals are identical, so they are clubbed and disposed of together. The main issue in all appeals relates to the allowability of the claim of depreciation on fixed assets acquired for the Trust's objectives. The Revenue argued against allowing depreciation, citing previous court decisions. However, the assessee's counsel referred to various judgments in favor of the assessee, including decisions by the Bombay High Court and Punjab and Haryana High Court. The conclusion from one of the judgments emphasized that depreciation on depreciable assets must be considered in computing the trust's income.

The Tribunal considered the arguments from both parties and reviewed the orders of the Revenue Authorities along with the cited judgments. The Tribunal noted the decision of the Bombay High Court, which supported allowing depreciation on assets where the cost had been fully accounted for as application of income in previous years. Given the binding nature of the judgments and the clarity of the issue, the Tribunal ruled in favor of the assessee. The Tribunal found the decision of the CIT (A) to allow the assessee's claim reasonable and fair, leading to the dismissal of all grounds raised by the Revenue in the appeals. Consequently, all five appeals filed by the Revenue were dismissed, with the order pronounced on July 18, 2016.

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