Tribunal upholds assessee's claim for expenses & depreciation, emphasizing charitable institution eligibility.

The Tribunal dismissed the Revenue's appeal against the deletion of expenses and depreciation additions made by the AO for the assessment year 2012-13. The judgment emphasized the eligibility of charitable institutions for depreciation and upheld the CIT(A)'s decision in favor of the assessee.

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Issues involved:
The judgment involves the deletion of additions made by the Assessing Officer (AO) on account of disallowance of expenses and depreciation for the assessment year 2012-13.

Deletion of Addition of Expenses:
The assessee appealed against the addition of expenses made by the AO, claiming that the expenses were duly audited and certified by the statutory auditor. The CIT(A) deleted the additions after verifying that the expenses were furnished to the AO and were in line with the trust's charitable objectives. The Tribunal found no error in the CIT(A)'s decision and dismissed the Revenue's appeal regarding this issue.

Deletion of Addition of Depreciation:
The AO disallowed depreciation, but during the appellate proceedings, the assessee requested to withdraw the ground against disallowance. However, later the assessee pleaded for the reversal of the disallowance. The CIT(A) allowed the depreciation claimed by the assessee, citing that charitable institutions were not eligible for depreciation under the provisions of the Income-tax Act. The Tribunal upheld the CIT(A)'s decision, emphasizing that the legal entitlement of depreciation cannot be denied to the assessee. The Tribunal dismissed the Revenue's appeal on this issue.

Conclusion:
The Tribunal dismissed the Revenue's appeal against the deletion of expenses and depreciation additions made by the AO for the assessment year 2012-13. The judgment highlighted the eligibility of charitable institutions for depreciation and upheld the CIT(A)'s decision in favor of the assessee.

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