TaxTMI 
TaxTMI 
2023 (11) TMI 505
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....Section 143(3) of the Income tax Act, 1961 (in short 'the Act') dated 22.12.2008 & 28.01.2014, 29.03.2015, 29.02.2016 & 29.12.2016. 2. At the outset, the ld. AR has submitted that the matter pertaining to Rambagh Golf Club in ITA no. 440/JP/2023 may be taken as a lead case for discussions as the issues involved in the lead case are common and inextricably interlinked or in fact interwoven and the facts and circumstances of other cases are identical except the difference in the amount in other assessment year. The ld. DR did not raise any specific objection against taking that case as a lead case. Therefore, for the purpose of the present discussions, the case of ITA No. 440/JP/2023 is taken as a lead and all these appeals are dispo....
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....y of money. The accounts of the trust are required to be maintained in the receipt and payment form. Depreciation being only a notional expense it cannot hold to be any payment for the purpose of receipt and payment account. The ld. AO based on these reasons and relying on the decision in the case of Escorts Ltd. Vs. Union of India (1993) 199 ITR 43, the Supreme Court held that when deduction under section 35(2) (iv) was allowed in respect of capital expenditure on scientific research, no depreciation was to be allowed under section 32 on the same assets. There is a fundamental axiom that double deduction is not intended unless there is a clear statutory indication on the contrary. The Supreme Court also referred to para 3.29 of the Choksi ....
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....he same asset as capital expenditure. Therefore, the depreciation of Rs. 2,36,078/-, claimed on assets acquired the application of income this year and in the precious years, is disallowed and added to the income of the society. 6. Aggrieved from the order of the assessment, the assessee preferred an appeal before the ld CIT(A). Apropos to the grounds so raised the finding of the ld. CIT(A) is reproduced here in below: "6.1 I have carefully considered the facts and circumstances of the case and the submission of the appellant. Relying on judicial pronouncement as highlighted above, I find that AO in assessment order has mentioned the fact that assessee is claiming depreciation on those assets in subsequent years against which 100% deduct....
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....16, depreciation can be claimed on the assets, expenditure on which has already been accounted as application of income. The ld. AR of the assessee thus relied upon the said amendment and the judgment in the case of Supreme Court in the case of CIT Vs. Rajasthan & Gujarati Foundation 402 ITR 441(SC) and Jansava Trust Vs. ITO (Exemption) in ITA No. 320/Bang/2023 where in the claim of the deprecation is allowed. 8. The ld DR is heard who relied on the findings of the lower authorities and more particularly advanced the similar contentions as stated in the order of the ld. CIT(A) and that of the assessing officer. Based on those contentions so recorded the ld. DR prayed to sustain the addition. 9. Heard the parties, perused the material and ....
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.... applied in the year under consideration. We get strength of the view from the decision of the apex court in the case of CIT Vs. Rajasthan & Gujarati Foundation [ 402 ITR 441 ] where in the court held that 4. Question No. 2 herein is identical to the question which was raised before the Bombay High Court in the case of Director of Income-tax (Exemption) v. Framjee Cawasjee Institute [1993] 109 CTR 463. In that case, the facts were as follows: The assessee was the Trust. It derived its income from depreciable assets. The assessee took into account depreciation on those assets in computing the income of the Trust. The ITO held that depreciation could not be taken into account because, full capital expenditure had been allowed in the year of....
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....realising that there was no specific provision in this behalf in the Income-tax Act, has made amendment in Section 11(6) of the Act vide Finance Act No. 2/2014 which became effective from the Assessment Year 2015-2016. The Delhi High Court has taken the view and rightly so, that the said amendment is prospective in nature. 5. It also follows that once assessee is allowed depreciation, he shall be entitled to carry forward the depreciation as well. 6. For the aforesaid reasons, we affirm the view taken by the High Courts in these cases and dismiss these matters. Thus, respectfully following the view of the apex court that the legislature, realising that there was no specific provision in this behalf in the Income-tax Act, has made amend....