2014 (12) TMI 1145

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....laim of depreciation of the assessee, allowed by the Commissioner of Income-tax (Appeals). 2. The assessee is a trust registered under section 12A of the Income-tax Act, 1961 (hereinafter referred to as "the Act"). The assessee filed its return of income for the assessment year 2010-11 on September 30, 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. Under section 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 wi....

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....sessee vehemently supported the order of the Commissioner of Income- tax (Appeals). Learned counsel for the assessee submitted that identical issue had come up in the assessee's own case in I. T. A No. 1790/Mds/2012 for the assessment year 2009-10 decided on February 14, 2013. The Tribunal placed reliance on the decision of the co-ordinate Bench in the case of Grand Lakes Institute of Management in I. T. A. Nos. 931 and 932/Mds/ 2012 decided on June 22, 2012, the decision of the hon'ble Delhi High Court in the case of Director of Income-tax v. Vishwa Jagriti Mission reported as [2012] TIOL-271-HC-DEL and the judgment of the hon'ble Punjab and Haryana High Court in the case of CIT v. Market Committee, Pipli reported as [2011] 330....

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.... 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 the Commissioner of Income-tax (Appeals). The Revenue in support of its stand has placed reliance on the decision of the hon'ble apex court in the case of J. K. Synthetics Ltd. v. Union of India [1993] 199 ITR 43 (SC). The hon'ble court in the said case was dealing with the expenditure under section 35(2)(iv) on scientific research. The assessee had also claimed the benefit o....