2012 (12) TMI 1070

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....7 arises out of the assessment completed under sec.153C, read with sections 153A and sec.143(3) of the Income-tax Act, 1961. The appeal for the assessment year 2008-09 arises out of the assessment completed under sec.143(3) of the Income-tax Act, 1961. 2. As far as the appeal for the assessment year 2006-07 is concerned, the Revenue has raised the following grounds : "1.a. On the facts and in the circumstances of the case, the learned CIT(A) has erred in directing the A.O. to allow exemption u/s 11. 1.b The learned CIT(A) has failed to note that the assessee has not provided any particulars either before the A.O. or before the CIT(A) relating to the provision of funds to M/s Jeppiar Educational Trust. 1.c The l....

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....The learned CIT(A) has failed to note that the assessee has not provided any particulars either before the A.O. or before the CIT(A) relating to the provision of funds to M/s Sivaraja Ramalinga Trust. 3. The learned CIT(A) has failed to note that perusal of I.T. return filed by M/s Holy Satellite Town Ltd. for the assessment year 2006-07 reveals that there is no supply of materials and that when the assessee has borrowed loans from I.O.B. at Rs. 9,32,58,581 and paid interest at Rs. 36,24,066 and parked an amount of Rs. 1,99,77,000 without any compensation, payments made to M/s Holy Satellite Town Ltd are hit by section 13(1)(c) read with section 13(3) of the I.T. Act 1961. 4. The learned CIT(A) has failed to note that when....

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....ssee was not entitled to claim depreciation on such assets. 2. Dy. DIT(Exemption) v. Adi Sankara Trust (46 SOT 230). In the said case, the Tribunal has held that where expenditure is treated as application of fund for charitable purpose, the assessee is not entitled for the benefit of depreciation. 6. The learned counsel appearing for the assessee, on the other hand, placed on the following reliance: 1. DIT vs. Vishwa Jagriti Mission 2012 (4) TMI 289 (Del.) In the above judgment, the Hon'ble High Court has held that the claim of depreciation on fixed assets utilized for the charitable purpose has to allowed while arriving at the income available for application to charitable and religious purposes sinc....