2018 (7) TMI 219

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.... "1. That on the facts and circumstances of the case the Ld. CIT (A) - XXI has erred both in facts and in law while sustaining the disallowance, made by the assessing officer, of depreciation of Rs. 6,52,45,727/- for the purposes of computing income of the appellant society under section 11 of the Income Tax Act. 2. That the Ld. CIT (A) has erred both in facts and in law by sustaining the disallowance made by the assessing officer of provision for bad debts of Rs. 12,74,419/- claimed while determining the income of the society on commercial principles of the appellant society under section 11 of the Act. 3. That the Ld. CIT(A) erred both in facts and in law while sustaining the disallowance , made by the assessing office....

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....2,232/- against sale of capital assets. The A.O. was of the opinion that no capital loss was allowable under the provisions of Section 11 of the Act. Aggrieved, the assessee approached the Ld. CIT (A) who upheld all these three additions/disallowances. Now, the assessee has approached the ITAT and has challenged the confirmation of disallowances by the Ld. CIT (A). 3. The Ld. A.R. submitted that the issue of depreciation was covered in favour of the assessee in assessee's own case by the order of Hon'ble Delhi High Court in DIT(Exemptions) vs. Indraprastha Cancer Society reported in 229 Taxmann 93 (Del). With respect to the provision for bad and doubtful debts, reliance was placed on the judgement of Hon'ble Delhi High Court in the case ....

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....Delhi High Court in assessee's own case as aforesaid. Thus, we have no hesitation in allowing ground no.1 of assessee's appeal. 5.1 Coming to ground no.2, we find that this issue is also covered in favour of assessee by the judgement of Hon'ble Delhi High Court in the case of DIT(E) vs. National Association of Software and Services Companies (supra). The relevant portion of the judgement, as contained in paragraph 40 of the said judgement, is being reproduced for a ready reference. "40. As regards the provision for bad and doubtful debts, the question again is whether in computing the income of the trust on commercial principles, the provision can be deducted or where the deduction can be allowed only in accordance with the prov....