2021 (3) TMI 1003

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....ince the identical facts and issues are involved in both the appeals, we proceed to dispose of the same by this common order. For the sake of clarity and brevity, the facts relevant to the appeal in ITA No.2548/PUN/2017 for the assessment year 2010-11 are stated herein. 3. The Revenue raised the following grounds of appeal in ITA No.2548/PUN/2017 which read as under :- "1) Whether in the facts and in the circumstances of the case and in law the Ld. CIT(A) was right in allowing the appeal of the assessee by ignoring the facts that assessee society like charitable or religious institutions are governed by almost the separate or independent provisions of Section 11,12, 12A, 12AA & 13 and these provisions are independent code in its....

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..../-. While doing so, the Assessing Officer had not allowed the depreciation as application of income of the trust. 5. Being aggrieved by the above order, an appeal was preferred before the ld. CIT(A), who vide his impugned order following the following judicial precedents allowed the depreciation as application of income :- (a) CIT v Institute of Banking Personnel Selection (IBPS)(2003) 264 ITR 110 (Bom) (b) G.K.R. Charities v Deputy Director of IT (Exemptions)-I (2012) 051 SOT 0538 (Chen Trib) (c) CIT v Society of The Sisters of St. Anne (1984) 146 ITR 28 (Kar) (d) CIT v Raipur Pallottine Society (1989) 180 ITR 579 (MP) (e) CIT v Sheth Manilal Ranchhoddas Vishram Bhavan Trust (1992) 198 ITR 59....

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....Court in the case of CIT vs. Rajasthan And Gujarat Charitable Foundation (supra) had followed the judgement of the Hon'ble Jurisdictional High Court in the case of CIT vs. Institute of Banking Personnel Selection (IBPS) [2003] 131 Taxman 386 wherein the Hon'ble Jurisdictional High Court had held as follows :- "3. As stated above, the first question which requires consideration by this Court is: whether depreciation was allowable on the assets, the cost of which has been fully allowed as application of income under section 11 in the past years? In the case of CIT v. Munisuvrat Jain 1994 Tax Law Reporter, 1084 the facts were as follows. The assessee was a Charitable Trust. It was registered as a Public Charitable Trust. It was also r....

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....ion 32 of the Income-tax Act and not under general principles. The Court rejected this argument. It was held that normal depreciation can be considered as a legitimate deduction in computing the real income of the assessee on general principles or under section 11(1)(a) of the Income-tax Act. The Court rejected the argument on behalf of the revenue that section 32 of the Income-tax Act was the only section granting benefit of deduction on account of depreciation. It was held that income of a Charitable Trust derived from building, plant and machinery and furniture was liable to be computed in normal commercial manner although the Trust may not be carrying on any business and the assets in respect whereof depreciation is claimed may not be b....