2019 (9) TMI 485

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.... matter of assessment order passed under s. 143(3) of the Income Tax Act, 1961 (here-in-after referred to as "the Act") dated 09/12/2015 relevant to the Assessment Year (AY) 2013-14. 2. The Revenue has raised the following grounds of appeal: 1. The Ld.CIT(A) has erred in law and on facts in allowing the depreciation of Rs. 11,05,73,991/- to the assessee which amounts to double deduction as 100% deduction was allowed to the assessee as application of income. 2. The Ld.Commissioner of Income Tax (Appeals) has erred in law and on facts in directing the AO to grant exemption to the assessee u/s.11(1)(a) of the I.T. Act, treating the activity of the trust to be in the interest of charity. 3. The Revenue craves over ....

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.... assessee also claimed that in the earlier assessment year 2011-12, the learned CIT (A) allowed the depreciation claimed by it on the capital expenditure. Similarly, there was no disallowance of the depreciation on the capital expenditure incurred by it for the assessment year 2012-13. 6. The learned CIT (A) after considering the submission of the assessee deleted the addition made by the AO. Accordingly, the learned CIT-A allowed the appeal of the assessee. 7. Being aggrieved by the order of the learned CIT-A, the Revenue is in appeal before us. 8. Before us, both learned DR and the AR vehemently supported the order of authorities below as favorable to them. 9. We have heard the rival contentions and perused the materials avail....

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....f income for charitable purposes under section 11(1)(a), yet depreciation would be allowed on assets so purchased (Position prior to 1-4-2015) In view of the above, there remains no doubt that the assessee besides the cost of capital expenditure is also entitled to the depreciation while working out the income of the charitable institution having valid registration under section 12A of the Act. 9.3 There is an amendment under section 11(6) of the Act which restricts the claim of the assessee for both the benefit/deduction, i.e. capital expenditure as well as depreciation thereon. As such as per the amendment the assessee is entitled to the deduction on account of depreciation in respect of such capital expenditures which were not clai....