2018 (3) TMI 1577

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....he same assessee on similar issue were heard together and are being disposed of by this consolidated order for the sake of convenience. In order to adjudicate the issue, we make reference to the facts in ITA No.1633/PUN/2014, relating to assessment year 2010-11. 3. The Revenue in ITA No.1633/PUN/2014, relating to assessment year 2010-11 has raised the following grounds of appeal:- 1) Whether, on the facts and in the circumstances of the case, the CIT(A) is justified in deleting the depreciation on capital assets which had already been allowed as application of income u/s 11 of the Act, earlier. 2) The order of the AO be restored and that of the CIT(A) be vacated. 4. The only issue raised in the present appeal is the ....

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....rs. Vs. Union of India (1993) 199 ITR 43 (SC). The assessee in reply, explained that the depreciation on assets of Trust was to be deducted while computing income of Trust. In this regard, reliance was placed on the ratio laid down by the Hon'ble Bombay High Court in the case of Framjee Cawasjee Institute (1993) 109 CTR 463 (Bom) and also in CIT Vs. Institute of Banking Personnel Selection (IBPS) (2003) 264 ITR 110 (Bom). Further, reliance was placed on the judgments of other High Courts. The Assessing Officer however, held that by allowing depreciation on such capital assets would amount to double deduction as per the ratio of judgment in Escorts Ltd. Vs. Union of India (supra) and hence, the same was rejected. 8. The CIT(A) noted that ....

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....of Banking Personnel Selection (IBPS) (2003) 131 Taxman 386 (Bom). The contention of Department of double benefit was turned down in the said decision and the relevant finding of the Hon'ble High Court has been reproduced, wherein the Hon'ble High Court held that the income of Trust was required to be computed under section 11 of the Act on commercial principles, after providing for allowance for normal depreciation and deduction thereof from gross income of the Trust. In view thereof, the said claim of depreciation on the assets, cost of which had already been allowed as deduction in the preceding years was allowed in the hands of assessee. The Hon'ble Apex Court also took note of the fact that most of the High Courts had taken the said vi....