TaxTMI 
TaxTMI 
2014 (1) TMI 1632
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....ts qua the assessee. 3. Heard the Ld. Departmental Representative Mr. Sameer Sharma. 4. We extracted para 2 and 3 for ready reference: "2. The assessee is running a Institution at Greater Noida, which is engaged in the profession of imparting higher professional education. The higher education including professional courses is also subjected to the rules and regulations as per norms of the State and Central Government. The facts of the case and the submission made by the assesse have been considered carefully, as the assessee has been granted registration u/s 12A by the Ld. CIT, Meerut vide certificate No. C. No. (23)/ Registration/ Noida/ 97-98/17351 dated 23.10.1997 hence assessee is granted exemption u/s 11 of the I. T. Act, 196....
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....issue. In view of the foregoing legal position, depreciation cannot be allowed as application of income for the reasons as discussed here-under: i. The depreciation allowance being notional expenditure cannot be debited to expenditure account of the assessee as what is to be computed is application of income and not expense. Since application is not defined in the Act, its meaning has to be taken from Oxford English Dictionary as per which application means" the bringing of a general or figurative statement." " the action of bringing something into material or effective contract with something else", "to use" and other meanings which are not directly relevant in the above case. The meanings clearly reflect that application does not me....
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....er the legislature wanted to give such deduction, it has specifically said so. The Hon'ble court has observed that the double deduction cannot be a matter of inference. It must be provided for in clear and express language with regard to the fact of its un-usual nature and its serious impact on the Revenue of the State. Therefore, it is reasonable to come to the conclusion that in the absence of expressed provision, depreciation cannot be allowed on assets whose cost has already been allowed as application. The depreciation calim as application of income, has been disallowed earlier by the Assessing Officer i.e for the A. Y. 2001-02 to 2005-06 and department has filed 2nd appeal on the same issue in assessee's own case. Thus the deprecia....
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....wable. 3. That the order of CIT (A) deserves to be set aside and the order of the Assessing Officer be restored." 6. After considering the submissions of the Ld. Departmental Representative, we hold as follows: " I have carefully, considered the appellant's submission in this regard and respectfully following the judgment dated 19/11/2010 passed by the Hon'ble ITAT, Delhi Bench-H, New Delhi in ITA No. 1708 TO 1711-IT/ Del/2010 for the A. Ys. 2001-02, 2002-03, 2004-05 & 2005-06 whereby the Tribunal has dismissed the appeal filed by the Department, it is held that the amount of depreciation debited to the account of Charitable Institutions is to be allowed as deduction to arrive at the income available for application to charitable o....