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of <h1>Tribunal rules in favor of assessee, allows depreciation and directs accumulation based on gross receipts.</h1> <h3>M/s Green Wood High Trust Versus The Asst. Commissioner of Income-tax, (Exemption), Circle-1, Bangalore.</h3> M/s Green Wood High Trust Versus The Asst. Commissioner of Income-tax, (Exemption), Circle-1, Bangalore. - [2018] 62 ITR (Trib) 264 Issues:1. Disallowance of depreciation2. Accumulation u/s 11(1)(a) of the Act on gross instead of net receiptsIssue 1: Disallowance of DepreciationThe assessee, a trust registered u/s. 12A of the Income Tax Act, filed its return of income for Assessment Year 2012-13, claiming exception u/s 11 of the Act. The assessment completed u/s. 143(3) of the Act disallowed depreciation claimed by the assessee. The CIT(A) allowed the appeal of the assessee on the issue of depreciation, overturning the AO's decision.Issue 2: Accumulation u/s 11(1)(a) of the Act on Gross instead of Net ReceiptsThe main issue revolved around whether accumulation of income for charitable purposes u/s. 11(1)(a) of the Act should be allowed at 15% of gross receipts or net receipts. The AO restricted accumulation to 15% of net receipts, while the assessee claimed it should be based on gross receipts. The Tribunal referred to a previous decision in the case of Mary Immaculate Society, where it was held that accumulation u/s. 11(1)(a) should be allowed at 15% of gross receipts. Relying on this precedent, the Tribunal directed the AO to allow accumulation at 15% of gross receipts as claimed by the assessee, thereby allowing the appeal.In conclusion, the Tribunal allowed the assessee's appeal for Assessment Year 2012-13, overturning the disallowance of depreciation and directing the accumulation u/s. 11(1)(a) of the Act to be based on gross receipts at 15%.
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