TaxTMI 
TaxTMI 
2019 (1) TMI 2008
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....It is running various educational institutions throughout the State of Karnataka. During the financial year 2006-07, the Trust was also running a hospital by the name and style of "BGS Appolo Hospital" at Mysuru, in collaboration with M/s. Appolo Hospital Enterprises Limited (AHEL), Chennai. 3. The Assessee filed its return of income on 31.10.2006 admitting a total income of Rs.nil. The return of Income was processed under Section 143(1) by the Income Tax Officer, Mandya. The case was selected for scrutiny in accordance with the scrutiny guidelines issued by the Central Board of Direct Taxes. Notice under Section 143(2) was issued and served on the assessee on 23.08.2007. In response to the same, the Internal Auditor has appeared and repre....
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....l. The Tribunal relied on the earlier judgment of the High Court of Bombay as well as the judgment of this Court in the case of COMMISSIONER OF INCOME TAX VS. SOCIETY OF THE SISTERS OF ST. ANNE reported in 146 ITR 28 and held that the depreciation is to be deducted, to arrive at an income available to charitable or religious purposes. 7. So far as Section 40(a)(ia) is concerned, the Tribunal once again relied on the judgment of St. Anne's case and also on the judgment of the Calcutta High Court in the case of DIRECTOR OF INCOME TAX (E) VS. GIRIDHARILAL SHEWNARAIN TANTIA TRUST reported in 199 ITR 215 and the judgment of the Madras High Court in the case of COMMISSIONER OF INCOME TAX VS. RAO BAHADUR CALAVALA CUNNAN CHETTY CHARITIES (1982) re....
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....TR 441 (SC). Therein, the Hon'ble Supreme Court considered a batch of cases on the very same question of law, which also arose in the case of very same Assessee herein. Therein, the question of law considered by the Hon'ble Supreme Court was, when the Income Tax Officer states that full expenditure had been allowed in the year of acquisition of the assets, what he really meant was that the amount spent on acquiring those assets, had been treated as 'application of the income' of the Trust in the year in which the income was spent in acquiring those assets. Therefore, it had been meant that in computing the income from those assets in the subsequent years, depreciation in respect of those assets cannot be taken into account. This view of the....
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....thirty per cent of] such sum shall be allowed as a deduction in computing the income of the previous year in which such tax has been paid :] [Provided further that where an assessee fails to deduct the whole or any part of the tax in accordance with the provisions of Chapter XVII-B on any such sum but is not deemed to be an assessee in default under the first proviso to sub-section (1) of section 201, then, for the purpose of this subclause, it shall be deemed that the assessee has deducted and paid the tax on such sum on the date of furnishing of return of income by the resident payee referred to in the said proviso.] 13. The aforesaid section would be applicable to the amount chargeable under the head "Profit and gain of the busi....