2018 (12) TMI 595

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....t Nagpal, Sr.DR ORDER PER RAJPAL YADAV, JUDICIAL MEMBER: Revenue is in appeal before the Tribunal against order of the ld.CIT(A)-5, Baroda dated 14.12.2015 passed for the assessment year 2011-12. 2. None appeared on behalf of the assessee. Therefore, we proceed to dispose of appeal exparte qua assessee-respondent after hearing the ld.DR and considering the material available on record.....

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....83,078/- towards objects of the Trust and gross receipts to the tune of Rs. 12,66,22,248/-. The AO noticed that the assessee has claimed depreciation amounting to Rs. 2,19,24,966/- as deduction under section 11 of the Act, in addition to claim of capital expenditure for acquisition of fixed assets as application of income. The AO was of the view that since all the expenditure of capital nature has....

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.... impugned orders of the Revenue authorities, we find that only controversy in the present case is, whether depreciation allowable on expenditure incurred for capital purpose where the expenditure was already treated as application of income for the objects of the assessee-trust in terms of section 11(1)(a) of the Act. The assessee is a charitable institution registered under section 12A of the Inc....

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.... the Act. Hon'ble Supreme Court observed that the argument that the grant of depreciation amounts to giving double benefit to the assessee is not acceptable. Hon'ble Supreme Court further held that specific provisions of section 11(6) which bars claim of depreciation of expenditure incurred for charitable purposes is prospective and applies only from the assessment year 2015-16. In view of the dec....