2015 (2) TMI 357

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....). The assessee has filed Cross-objections in support of the impugned order. 2. The assessee is a trust registered u/s.12A of the Income Tax Act, 1961 (herein after referred to as 'the Act'). The assessee filed its return of income for the AY. 2010-11 on 29-07-2010 declaring its taxable income as 'NIL'. In scrutiny assessment, the Assessing Officer held that the assessee is not eligible for claiming depreciation on assets. U/s.11 capital expenditure incurred by the trust is allowable as deduction. Any further allowance by way of depreciation amounts to double deduction. The Assessing Officer further held that depreciation is not a cash expenditure, the amount of depreciation remains with the trust itself and hence not ....

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.....K. Synthetics Ltd., Vs. Union of India reported as 199 ITR 43 (SC). 4. On the other hand, Shri K.P.Vasantha Kumar, appearing on behalf of the assessee vehemently supported the order of the CIT(Appeals). The ld.Counsel for the assessee submitted that identical issue had come up in the case of M/s.Kongunadu Arts & Science College Council (supra). While adjudicating the issue, the Tribunal placed reliance on the decision of co-ordinate bench in the case of M/s. Grand Lakes Institute of Management in ITA Nos. 931 & 932/Mds/2012 decided on 22-06-2012, decision of the Hon'ble Delhi High Court in the case of DIT Vs. Vishwa Jagriti Mission reported as - 2012-TIOL-271-HC-DEL and the judgment of Hon'ble Punjab & Haryana High Court in the ....

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..../Mds/2012 decided on 22-06-2012. In the aforesaid decision of co-ordinate bench, catena of judgments were referred and discussed to conclude that in case of trusts registered u/s.12A, the claim of depreciation does not amount to double deduction. The Hon'ble Punjab & Haryana High Court in the case of CIT Vs. Market Committee, Pipli (supra) has held that the income of the assessee being exempt, the assessee is only claiming that depreciation should be reduced from the income for determining the percentage of funds which have to be applied for the purpose of the trust. This does not amount to double deduction as contemplated by the Revenue. In view of the settled position, we do not find any infirmity in the order of CIT(Appeals). ....