TaxTMI 
TaxTMI 
2021 (1) TMI 913
X X X X Extracts X X X X
X X X X Extracts X X X X
....ppeal: "(i) On the facts and in the circumstances of the case and in law, Ld. CIT(A) has erred in allowing the appeal of the assessee ignoring the fact that in the case of charitable or religious institutions, the assessee is not eligible for any type of depreciation as the entire expenditure for the purchase of capital assets is allowed as a deduction and the same is treated as application of income u/s. 11(1) and claiming depreciation on the same capital assets is a double deduction and is not as per law as these capital assets are not used for the purpose of business of profession as provided u/s. 32(1). (ii) On the facts and in the circumstances of the case and in law, Ld. CIT(A) has erred in allowing the appeal of the....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... non-profit organization. It was also registered u/s.12A to carry on the objects of promoting the Indian Trade through medium of organizing trade fairs, exhibitions, etc. in India and abroad. It has also got exemption u/s. 10(23)(iv) from Assessment Year 1989-90 onwards. The Tribunal in so far as the issue of allowance of depreciation is concerned had decided this issue in the following manner: "9. AO made disallowance of Rs. 2,11,52,612/-, Rs. 1,69,34,321/- & Rs. 1,37,55,543 in AYs 2009-10, 2010-11 & 2011-12 respectively on the ground that when deduction is allowed in respect of capital expenditure, no depreciation is allowed on the same assets as it would lead to double deduction. However, the ld. CIT (A) allowed the depreciation....
X X X X Extracts X X X X
X X X X Extracts X X X X
....entitled to write back depreciation and if done, the Assessing Officer would modify the assessment determining the higher income and allow recomputation of depreciation written back for the purpose of application of income for charitable purposes in future or subsequent years. This may lead to its own difficulties and problems as suddenly the entire depreciation written off would have to be added first and then in one year substantial application of income would be required. This may be impractical and would disturb the working of many a charitable institutions. The legal interpretation which has continued since 1984, if disturbed and implemented, would not appropriately resolved. Consistency and certainty is more appropriate. 16. ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ce in Pragati Maidan and assessee made endeavours for recovery of space rent. In this regard, the assessee was engaged in long correspondence with the Departments and pursuing the matter for recovery of the space rent at various levels in the Administrative Ministries of the Government of India. One of the organization viz. National Science Centre (NSC) had paid space rent to the ' assessee company @ Rs. 200/- per sq. mtr. p.a. in an earlier year. Subsequently, the rate of space rent was enhanced by the assessee company on year to year basis which was contested by the NSC. Accordingly, the assessee company has accounted for income @ Rs. 200/- per sq. mtr. per year in the Income & Expenditure Account as NSC had paid @ Rs. 200/- per sq. m....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... is unreasonable to expect ultimate collection, revenue recognition should be postponed. 7. This precise issue has also been considered by the Tribunal in the earlier years wherein it has been discussed in the following manner: "12. AO made addition of Rs. 1,68,73,663, Rs. 2,01,86,003 & Rs. 1,83,00,000 in AYs 2009-10, 2010-11 & 2011-12 respectively on a/c of space rent income on the basis of disclosure in Notes to Accounts of the assessee. However, ld. CIT(A) deleted the addition on the ground that since space rent account is disputed by two Government Departments viz. National Science Centre and Crafts Museum by contesting the ownership of land attracting rent by the assessee and claimed that they are in possession of the land ....