TaxTMI 
TaxTMI 
2023 (7) TMI 273
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....n'ble Supreme Court of India which is followed in assessee's own case by the Co-ordinate Bench of this Tribunal in ITA Nos. 2434 and 2378/Ahd/2017 vide order dated 16-06-2023 relating to the Assessment Year 2014-15. Further there is no change in facts of the present case, therefore the above decision is squarely applicable to the present case. 3. The Grounds of Appeal raised by the Revenue in ITA No.370/Ahd/2019 for A.Y. 2015-16 reads as under: 1. "Whether, on the facts and in the circumstances of the case, the CIT(A) is justified in allowing the assessee's appeal, negating the finding of the Assessing officer denying the benefits of section 11 and 12 of the I.T. Act." 2. "Whether, on the facts and in the circumstances of the case the CIT(A) is justified in giving the benefit of Section 11 and 12 which the Assessing Officer disallowed by invoking the provision of Section 2(15) r.w.s 13(8) of the Act." 3. "The Revenue craves to add, alter amend modify, substitute delete and/or rescind all or any Grounds of appeal on or before the final hearing if necessary so arises." 4. We have given our thoughtful consideration and perused the materials available on record. The Ld. CIT....
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....een precluded from examining the facts and assessing the concerned assessment years, in relation to the assesses in these appeals. It was urged that the conclusions recorded in the judgment and those in the said two paragraphs, preclude it from dealing with the assessments of parties before this court and furthermore, the dismissal of the revenue's appeals will preclude an examination of the merits for these assesses in future, as well. 4. A plain reading of the conclusions recorded in Para 253(A), (B), (C), (D) and (E) would disclose that this court consciously recorded its findings, with the intent of finally deciding the issues, for various organizations- Sh in relation to the assessment years in question, whereas in Para 253 (F), the court remitted the matter for examination and orders by the assessing officer. Similarly, the conclusion in Para 253 G. was conclusive with respect to the claim of private trusts, the appeals were dismissed. These conclusions are accurately reflected in the final, operative directions in Para 254. In Para 254 (i) to (iv), the conclusions recorded are against the revenue. However, in Para 254 (v), (vi), (vii) and (vii), the conclusions, are in....
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....alance sheet item. 5. Ld. CIT (A) erred in law and on facts directing AO to treat income from premium on lease of plots of land and receipts from sale of land shops as income of the appellant irrespective of its treatment as balance sheet item 6. Ld. CIT (A) erred in law and on facts holding the appellant not entitled to claim from various funds received as per provisions of GTPUD Act (i) accumulation @ 15% u/s 11(1)(a) of the Act (ii) claim capital expenditure as application of income (iii) claim depreciation on fixed assets created out of such funds. 7 Ld. CIT (A) erred in law and on facts holding the appellant not entitled to claim from receipts as premium on plots, sale of plots (i) accumulation @ 15% u/s 11(1)(a) of the Act (ii) claim capital expenditure as application of income (iii) claim depreciation on fixed assets created out of such funds. 8 Ld. CIT (A) erred in law and on facts directing AO to verify & apply rate of depreciation on the basis of normal commercial principles & not as per section 32 of the Act not applicable to exempt person. 9 In view of the judgment of Hon'ble Gujarat High Court in appellant's case, ld. CIT (A) ought to have granted exe....
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.... judicial precedent, we hold that the assessee is entitled to claim the depreciation as 'plant and machinery' as the assessee in promoting public objects which are activities in the nature of trade, commerce or business but without commercial motive. Thus the ground no. 8 raised by the Assessee is hereby allowed. 12. Ground no. 9 namely the application of income shall precede accumulation by directing A.O. to allow accumulation u/s. 11(1)(a) of the Act, from income remaining after deducting amount applied for the objects of the assessee trust. 12.1. In this connection, Ld. Counsel drawn our attention to the decision of the Co-ordinate Bench in the case of Gnyan Dham Vapi Charitable Trust Vs. DCIT (Exemptions) in ITA No. 2208/Ahd/2018 dated 19-08-2020 observing as follows: "...8.1 Under s.11 of the Act, income derived from property held under trust wholly for charitable or relates purposes shall not be included in the total income subject to certain conditions. On a combined reading of Section 11(1)(a) and Section 11(2) of the Act, it emerges that the trust is allowed to accumulate 15% of its income without any time limit and balance 85% can be set apart for specified period to ....
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....icable to accumulation of income cannot be extended to application thereof. Where an assessee trust has made excess application of its income, the option or entitlement vested upon an assessee to accumulate 15% for indefinite period in our view cannot operate as an obligation enforceable against it in the absence of accumulation. The method of computation of deficit to be truncated artificially 15% based on an entitlement (opposed to an obligation) as suggested by first appellate authority is totally devoid of any logic. This would tantamount to application of concession conferred on assessee in a reverse manner and thus put the assessee in a worser position in the event of accelerated application of receipts for salutary purposes. The action directed by CIT(A) has the effect of deprivation of concession granted and is repugnant to the intended outcome. The Pune Bench of Tribunal in Maharshi Karve Stree Shikshan Samstha Karvenagar vs. ITO 174 ITD 591 (Pune) has also essentially held that relaxations conferred under s. 11(1)(a)/(b) r.w. Section 11(2) of the Act to the extent of 15% of income would not nullify the entitlement of such absolute nature by way of reduction in quantum of ....