TaxTMI 
TaxTMI 
2019 (1) TMI 2023
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.... erred in allowing the benefit of section 11 & 12 of the Income Tax Act ignoring the fact that the assessee activities are not within the purview of the section 2(15) of the I.T. Act, 1961 during the year. 2. On the facts and in the circumstances of the case and in law, the Ld. CIT(A) has erred in allowing the claim of depreciation of Rs.13,64,241/- to the assessee ignoring the fact that the assessee had claimed the amount Incurred on purchase of assets in earlier years as application of income, on which depreciation is claimed now and further allowance of depreciation will be tantamount 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 claim of depreciation ....
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....e Assessing Officer treated receipt of the assessee by giving barcode technology to its customers, against fee charged as commercial in nature observing that the license agreement is a pure business agreement for running royalty income for extending the licence for use of the intellectual property right. According to the Assessing Officer there is no charitable activity involved in granting license to all type of customers irrespective of whether the user is using in his business affairs or for charitable purposes. The Assessing Officer also stated that that despite the assessee carrying on commercial/business activity, yet it has not maintained separate books of accounts as required under the provisions of section 11(4) and 11(4A) of the A....
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....st the barcode technology to the customers is purely in the nature of commercial and business activity and therefore the assessee is hit by the provision to section 2(15) of the Act. Thus, according to him, in absence of separate books of accounts maintained by the assessee, the Assessing Officer has rightly disallowed the benefit of section 11(4) and 11(4A) to the assessee. 4. The Ld. counsel of the assessee on the other hand relied on the order of the Ld. CIT(A) and submitted that the activity of the assessee are charitable in nature and the assessee has been allowed benefit under section 10(23C)(iv) of the Act and registration under section 12AA(1) of the Act by the Hon'ble Delhi High Court in ITA 333/2018. He submitted that the Tribuna....
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....dismissed." 6. We have also noticed that in identical circumstances the Tribunal in ITA No. 5042/Del/2015 for assessment year 2011-12 has allowed the appeal of the assessee observing as under: "5. We have carefully gone through the record. It is submitted by the Ld. DR and also we could found from the order of the Ld.CIT (A) that pursuant to the orders dated 26.09.2013 of the Hon'ble Jurisdictional High Court in assessee's own case for the AY 1996- 97, by order dated 23.10.2013, Ld. DGIT (E) had allowed the exemption u/s 10(23C)(iv) of the Act to the assessee and against the cancellation of registration u/s 12AA(3) of the Act w.e.f. 2009-10 a coordinate bench of this Tribunal in ITA No. 3733/Del/2009 vide order dated 11.10.2013 allowed ....
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....under: "5.5 There is no dispute on the fact that the assessee continued the same activity which was carried in assessment year 2011-12 & 2010-11. As the activities of the assessee have been held as charitable in nature by the Hon'ble High Court and the Tribunal, respectfully following the same, we hold the activity of the assessee in the year under consideration as also charitable and the assessee is entitled to benefit of section 11 and 12 of the Act and, thus, application of income has to be allowed in accordance with law. The finding of the Ld. CIT(A) on the issue-in-dispute is upheld. The ground No. 1 of the appeal of the Revenue is accordingly dismissed." 8. On the issue of allowing depreciation despite claiming benefit of appl....