2019 (1) TMI 991

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....e assessee-trust, registered u/s 12AA of the Income Tax Act, 1961 (in short 'the Act') filed its return of income for Assessment Year 2010-11 declaring NIL income. The case was taken up for scrutiny for this year and the assessment was completed u/s 143(3) of the Act vide order dated 20.03.2013. Subsequently, the CIT, Davangere passed an order u/s 263 of the Act setting aside the order of assessment dated 20.03.2013 as being erroneous and prejudicial to the interests of Revenue. The resultant order of assessment for Assessment Year 2010-11 was passed u/s 143(3) r.w.s. 263 of the Act vide order dated 16.03.2015; wherein the assesseee's income was determined at Rs. 5,54,320/- in view of the following disallowances: (i) Disallowance o....

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....isallowance of Rs. 23,175/- claimed as application in respect of donation given by the appellant under the facts and in the circumstances of the appellant's case. 5. The learned CIT[A] is not justified in approving the computation made by the learned A.O. who excluded the loans raised by the appellant from the extent of application made under the facts and in the circumstances of the appellant's case. 6. For the above and other grounds that may be urged at the time of hearing of the appeal, your appellant humbly prays that the appeal may be allowed and Justice rendered and the appellant may be awarded costs in prosecuting the appeal and also order for the refund of the institution fees as part of the costs. 4. G....

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....ied the assessee the claim of depreciation of Rs. 10,04,041/- on the ground that the capital expenditure on the assets was already allowed and further allowing the assessee depreciation thereon would amount to double deduction. We find that on this very issue of depreciation was considered by the Hon'ble Apex Court and in its decision in the case of CIT Vs. Rajasthan and Gujarati Charitable Foundation (2018) (402 ITR 441) (SC) has held that the assessee - trust is entitled to depreciation u/s 32 of the Act on assets whose cost has been allowed as application towards charitable purposes u/s 11(1)(a) of the Act. The Hon'ble Court further held that the amendment in section 11(6) of the Act brought about by Finance (No.2) Act, 2014 which became....