2015 (8) TMI 1409

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....61. 2. Briefly stated, the assessee is a trust and it is registered under section 12AA of the Income-tax Act, 1961 vide order of the Director of Income-tax (Exemptions), Hyderabad in F. No. DIT(E)/Hyd/12A/130 (02)/07-08, dated November 16, 2009 with effect from April 1, 2007. The assessee-trust filed its return of income for the assessment year 2010-11 on September 28, 2010 declaring nil income. The return of income was initially processed under section 143(1) of the Income-tax Act on May 24, 2011. Later, this case was selected for scrutiny under CASS. Notice under section 143(2) was issued on September 28, 2011. During the scrutiny, the computation was reworked as under :   (Rs.) (Rs.) Gross receipts as per income and e....

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.... for this year, he ought to have set off the said short-fall against the deficit for the assessment year 2008-09. On the facts and in the circumstances of the case. 6. The Assessing Officer erred in restricting the credit for TDS to Rs. 12,08,494 against Rs. 12,45,700 claimed by the appellant, on the facts and in the circumstances of the case." 4. The learned Commissioner of Income-tax (Appeals) partly allowed the appeal of the assessee-trust and dismissed ground Nos. 2 and 5. Aggrieved by the order of the learned Commissioner of Income-tax (Appeals), the assessee has preferred this appeal before the Tribunal on the following grounds : "1. The order of the Commissioner of Income-tax (Appeals) is contrary to law and facts and circum....

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....of the asset was deducted while computing the amount applied towards the object of the trust. Learned counsel for the assessee submits that the co-ordinate Bench of the Tribunal in the case of A. P. Olympic Association v. Asst. DIT (Exemption) [2014] 30 ITR (Trib) 314 (Hyd) has categorically held that charitable or religious trust registered under section 12AA can claim benefit under section 11 in the form of application of funds as well as depreciation under section 32 in respect of the property held under the trust. Therefore, the learned Commissioner of Income-tax (Appeals) erred in disallowing the depreciation under section 32. On the other hand, the learned Departmental representative submits that it is nothing but a double deduction a....

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....al accounting principles, there is authority for the proposition that depreciation is a necessary charge for computing the net income. Secondly, the hon'ble Supreme Court was concerned with the case where the assessee had claimed deduction of the cost of the asset under section 35(1) of the Act, which allowed deduction for capital expenditure incurred on scientific research. The question was whether after claiming deduction in respect of the cost of the asset under section 35(1), the assessee can again claim deduction on account of depreciation in respect of the same asset. The hon'ble apex court ruled that, under general principles of taxation, double deduction in regard to the same business outgoing is not intended unless clearly ....