2013 (11) TMI 123

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....ssee has claimed benefit under section 11 which include one, in the form of application of funds and second in the form of depreciation. The application of funds is allowed under section 11 already, during the assessment. The assessee's claim for depreciation amounts to claiming of double deduction. For this reason, depreciation is disallowed. The learned Commissioner of Income-tax (Appeals) has erred in not appreciating this fact brought out in the assessment order on the issue of disallowing depreciation, which has in effect necessitated this appeal. The brief facts of the case are as follows: The appellant is a registered charitable institution under section 12A of the Act. For the assessment year 2007-08, return of incom....

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....ment year 2006-07 in I. T. A. No. 775/Bang/2009 dated January 29, 2010. The Commissioner of Income-tax (Appeals) allowed the appeal of the assessee. The relevant observation of the Commissioner of Income-tax (Appeals) in respect to the assessment year 2007-08 is as follows : "All the grounds of appeal from ground Nos. 1 and 2 are relating to the claim of depreciation not being allowed by the Assessing Officer in the assessment order dated December 29, 2009 under section 143(3). The appellant has filed copy of the Income-tax Appellate Tribunal's order in the appellant's own case for the assessment year 2006-07, vide I. T. A. No. 775(Bang)/2009 dated January 29, 2010 wherein the Income-tax Appellate Tribunal has directed t....

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....ing the issue in favour of the appellant for the assessment year 2006-07. The learned authorised representative submitted that the issue in question is squarely covered by the order of the Tribunal in the assessee's own case for the immediately preceding assessment year 2006-07 in I. T. A. No. 775/Bang/2009, wherein the Tribunal has categorically held that the appellant is entitled to depreciation on an asset, though the investment on the same was allowed as an application of income to the extent required to fulfil the conditions prescribed under section 11(2) of the Act. The learned authorised representative relied on the judgment of the Punjab and Haryana High Court in the case of CIT v. Tiny Tots Education Society [2011] 330 ITR 2....