TaxTMI 
TaxTMI 
2014 (1) TMI 974
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....ccount of Development Fund of Rs. 66,25,049/-. The Ld. CIT(A) has not appreciated the fact that the Income Tax Act does not permit to exclude the fees amount collected from the students for Development Fund from the total receipt of the year, even if the same is being utilized for purposes of students welfare in any manner. ii) The Ld. CIT(A) has erred in allowing the claim of depreciation of Rs. 15,94,466/- without appreciating the fact that it is a double deduction of depreciation claim, as the assessee has already claimed the said amount while purchasing the assets. iii) The appellant craves lave to add, to alter or amend any ground of appeal raised above at the time of hearing. 3. Apropos deletion of addition on account of Deve....
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....d activities. The expenditure incurred was also debited to the fund and the amount was kept separately for development activities of the school. Principally the fund is capital receipt being amounts collected for various development activities as stated supra. The policy forward is in accordance with the principles of accounting and as per the direction of the Directorate of Education. Further as per the Delhi School Education Act and Rules and notification issued by the Directorate of Education, it is specifically provided that the development fee shall be charged to be treated as capital receipt and in pursuant thereto, the same was rightly capitalized during the year." 3.1 Assessing Officer was not satisfied, he held that as per....
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.... 5. Against the above order the Revenue is in appeal before us. 6. We have heard the Ld. DR. None appeared on behalf of the assessee. However, in our considered opinion, the matter can be disposed off by perusing the records and hearing the Ld. DR. In this case, we find that as per the directions issued by the Director of Education, the school is entitled to collect the development fund for the purpose of supplementing the resources for purchase, upgradation and replacement of furniture, fixture and equipments. It has been the submission of the assessee before the authorities below that the fund collected from the students was utilised for development of amenities for the benefit and welfare of the children. Furthermore, the school had d....
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.... is meant for being spent on activities in the capital filed, the same cannot be treated by the Assessing Officer as revenue receipt. In the background of the aforesaid discussions and precedent, we do not find any infirmity in the order of the Ld. CIT(A), accordingly, we uphold the same. 7. Apropos the claim of depreciation On this issue Assessing Officer noted that assessee has claimed depreciation of Rs. 15,94,466/- in the income and expenditure account. Assessing Officer held that since the benefit of application of fund has already been taken when the assets were purchased, this claim of the assessee was not allowable. Hence, Assessing Officer disallowed the claim of the depreciation. 8. Upon assessee's appeal Ld. CITA(A) deci....