2017 (12) TMI 1067

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....o. 8368/2014 SLP(C) No. 20837/2014 C.A. No. 7376/2014 SLP(C) No. 20296/2015 SLP(C) No. 20836/2014 C.A. No. 6112/2015 C.A. No. 7173/2016 C.A. No. 6612/2015 C.A. No. 8019/2016 C.A. No. 10405/2016 SLP(C) No. 33940/2013 C.A. No. 7927/2015 C.A. No. 9722/2016 C.A. No. 9957/2016 C.A. No. 8908/2015 C.A. No. 9813/2014 SLP(C) No. 37618/2013 C.A. No. 10451/2016 C.A. No. 7186/ 2014 etc. C.A. No. 11027/2013 C.A. No. 10695/2016 SLP(C) No. 33757/2016 C.A. No. 11806/2016 C.A. No. 11733/2016 SLP(C) No. 34614/2016 C.A. No. 13569/2015 C.A. No. 14608-14609/2015 C.A. No. 11734/2016 C.A. No. 11805/2016 C.A. No. 1066/2017 C.A. No. 11978/2016 C.A. No. 12280/2016 C.A. No. 14672/2015 C.A. No. 14252/2015 C.A. No. 794/2014 SLP(C) No. 30624/2017 C.A. No. 18430/2017 ....

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.... Mr. Vinodh Kanna B., AOR Ms. Arti Singh, AOR Ms. Pooja Singh, Adv. Mr. Parag P. Tripathi, Sr. Adv. Mr. A. V. Rangam, AOR Mr. Buddy A. Ranganadhan, Adv. Ms. Mishika Bajpai, Adv. Mr. Ajay Vohra, Sr. Adv. Ms. Kavita Jha, AOR Mr. Bhuwan Dhoopar, Adv. Mr. Sanjay Bansal, Sr. Adv. Mr. Aljo K. Joseph, Adv. Ms. Shelna K., Adv. ORDER These are the petitions and appeals filed by the Income Tax Department against the orders passed by various High Courts granting benefit of depreciation on the assets acquired by the respondents-assessees. It is a matter of record that all the assessees are charitable institutions registered under Section 12A of the Income Tax Act (hereinafter referred to as 'Act'). For this reason, in the previous year to....

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....n 11 in the past years? In the case of CIT v. Munisuvrat Jain 1994 Tax Law Reporter, 1084 the facts were as follows. The assessee was a Charitable Trust. It was registered as a Public Charitable Trust. It was also registered with the Commissioner of Income Tax, Pune. The assessee derived income from the temple property which was a Trust property. During the course of assessment proceedings for assessment years 1977-78, 1978-79 and 1979-80, the assessee claimed depreciation on the value of the building @2½% and they also claimed depreciation on furniture @ 5%. The question which arose before the Court for determination was : whether depreciation could be denied to the assessee, as expenditure on acquisition of the assets had been trea....

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....ant and machinery and furniture was liable to be computed in normal commercial manner although the Trust may not be carrying on any business and the assets in respect whereof depreciation is claimed may not be business assets. In all such cases, section 32 of the Income Tax Act providing for depreciation for computation of income derived from business or profession is not applicable. However, the income of the Trust is required to be computed under section 11 on commercial principles after providing for allowance for normal depreciation and deduction thereof from gross income of the Trust. In view of the aforesatated judgment of the Bombay High Curt, we answer question No. 1 in the affirmative i.e., in favour of the assessee and against the....