TaxTMI 
TaxTMI 
2019 (8) TMI 1635
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....im of carry forward of losses disregarding the fact that set-off and carry forward of losses are delete with by the provisions of section 70 to 74 of the Income Tax Act. iii. On the facts and in the circumstances of the case and in laws, the Ld. CIT(A) has erred in law & fact that allowing depreciation on fixed assets in tantamount to double deduction as the expenditure on fixed asset is already allowed. iv. The appellant craves leave to add, to alter or amend any ground of appeal raised above at the time of hearing. " (B) During appellate proceedings in Income Tax Appellate Tribunal ("ITAT", for short), copies of the following orders were filed from assessee's side: I. ITAT order dated 20/04/2005 for AY 2001-02 in the case of The Delhi Public School Society v. DCIT(E) ITA No. 4571/D/2004. II. ITAT order dated 23/05/2019 for AY 2012-13 in the case of DCIT(E) v. The Delhi Public School Society ITA No. 4887/D/2016. III. Director of Income tax (E) v. Delhi Public School Society High Court of Delhi 92 taxmann.com 132 IV. Director of Income tax (E) v. Delhi Public School Society Supreme Court of India 100 taxmann.com 80. ....
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....deduction on account of depreciation will amount to double deduction. 3. On the facts and in the circumstances of the case and in law, the Ld CIT(A) has erred in allowing the deficit of earlier assessment, as there is no provision for set off of losses u/s 11, 12 and 13 of the income tax act, 1961. 4. On the facts and in the circumstances of the case and in law, the Ld CIT(A) has erred in allowing the claim of carry forward of losses disregarding the facts that the setoff and carry forward of losses are dealt with by the provisions of section 70,71,72,73 &74 of the Income Tax Act." 2. At the outset, the ld. AR stated that the impugned issues raised in this appeal are squarely covered in favour of the assessee and against the Revenue by the decision of the Coordinate bench in assessee's own case in 6627/Del/2015 for A.Y. 2010-11 vide order dated 29th November, 2017. 3. The ld. DR, other than supporting the findings of the Assessing Officer, could not bring any distinguishing decision in favour of the Revenue 4. After considering the impugned orders and the issues raised in the present appeal, we find that similar issues were involved ....
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....re, we note the Hon'ble Jurisdictional High Court decision in the case of DIT vs. Vishwa Jagriti Mission in ITA no. 140/2012 vide order dated 29.3.2012. In this case the Ld.CIT(A) on the basis of the order passed by the -. Ld.DIT(E) accepted assessee's claim for exemption u/s 11. As regards the claim of depreciation on fixed assets utilized for charitable objects of the trust, he accepted assessee's claim. The tribunal confirmed the decision of Ld.CIT(A) on appeal. On appeal the Jurisdictional High Court has held as under. "There is no dispute that the assessee has been granted registration u/s 12AA and, therefore, it was entitled to exemption of its income u/s 11. The only question is whether the income of the assessee should be computed on commercial principles and in doing so whether depreciation on fixed assets utilized for the charitable purposes should be allowed. On this issue, there seems to be a consensus of judicial thinking. Having regard, to the consensus of judicial opinion, we are not inclined to admit the appeal and frame any substantial question of law. There does not appear to be any contrary view plausible on the question raised before us and at ....
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....at also qualified as charitable purpose under section 2(15) and, therefore, assessee society fulfilled requirements to qualify for exemption under section 10(23C)(vi). In the case of DIT(E) vs. Delhi Public School Society[2018] 100 taxmann.com 80(SC), a special leave petition of Revenue against the aforesaid order of Hon'ble Delhi High Court was dismissed by Hon'ble Supreme Court. (B.2.1) In the case of CIT vs. Rajasthan & Gujarati Charitable Foundation Poona [2018] 89 taxmann.com 127 (SC), it was held by Hon'ble Supreme Court that in the case of charitable institution registered under section 12A, even though expenditure incurred for acquisition of capital assets was treated as application of income for charitable purposes under section 11(1)(a), yet depreciation would be allowed on assets so purchased. (B.2.2) In the case of DIT vs. Raghuvanshi Charitable Trust [2011] 197 Taxman 170 (Delhi), it was held by Hon'ble Delhi High Court that a trust can be allowed to carry forward deficit of current year and to set off same against income of subsequent years. It was further held by Hon'ble Delhi High court in this case that adjustment of deficit of current year against inco....
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....e (v) or sub-clause (vi) or sub-clause (via) shall apply in relation to any income of the fund or trust or institution or any university or other educational institution or any hospital or other medical institution, being profits and gains of business, unless the business is incidental to the attainment of its objectives and separate books of accounts are maintained by it in respect of such business: 14. The real question for determination is therefore whether the educational institution exists solely for the purpose of education and not or the purpose of profit. In this regard we have also perused the copy of he notification dt 8.7.04 issued by the Director General of Income Tax Tribunai Delb य Exemption, New Delhi). The assessee has been duly approved as an Educational Institution for the purpose of sub. Clause (vi) of Clause 23C 5f Sec. 10 of the IT Act. As already stated, any income of an educational institution notified u/s 10 (23C)(vi) is exempt. In view of the Document 3 cation referred to above, there can be no question of bringing to mounts received from the collaborators school by terming the s receipts as bu....
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....So long as the business carried on is in the course accomplishing the primary purposes of the trust and the income from such business is utilized for the purpose of achieving the objects of the trust or institution., the requirement of sec I are satisfied. The Hon'ble High court of Delhi in the case of CIT vs Delhi Kannada Education Society reported in 246 ITR 731 also held that if the income is from an educational institution, which exits solely for educational purposes and not for the purpose of profit then that income would be entitled to exemption, so long as the income is directly relatable to educational activity. We have already pointed out as to how the assessee had complied with all the various conditions that have been mentioned in the notification by the prescribed Authority u/s 10(23C)(vi) Document 5 laid down that a erson or individual was entitled to any portion of the said profit = jaid profit was utilized for the purposes and for the promotion of objects of the institution. In the present case, it is not the complaint the AO that the receipts from satellite schools had been utilized F distribution to any individual. ....