2025 (5) TMI 949

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....NFAC"), Delhi vide order dated 01.08.2024 passed for A.Y. 2017-18. 2. The assessee has raised the following grounds of appeal: "(1) That on facts, and in law, the learned NFAC and the AO has grievously erred in not at all considering the replies/submissions filed by appellant and in dismissing the appeal. (2) That on facts, and in law, the learned NFAC has grievously erred in not granting the opportunity of Video Hearing, in spite of specific request made by appellant. (3) That on facts and in law, the learned NFAC has grievously erred in confirming the addition of Rs. 26,84,786/- made by AO u/s 11(6) of the Act, by completely ignoring the fact that the appellant has not claimed the purchase value of assets as ....

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.... of income, the assessee also furnished certificate of Chartered Accountant to demonstrate that amounts spent for acquisition of such asset was not claimed as "application of income". However, Ld. CIT(A) dismissed the appeal of the assessee with the following observations: "5.3.1 I have gone through the assessment order and grounds of the appeal and submissions. In order to do away with the complication of double benefits, section 11 was amended and sub section (6) was inserted via the Finance Act No. 2/2014. This sub section specifically deals with this issue and stipulates that where the use of funds for acquisition of an asset has been accepted as application of income of the charitable trust, no deduction of depreciation or oth....

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....e submitted that this is the second year of incorporation and neither in this year or in the previous assessment year, this amount was claimed by the assessee as "application of income". Accordingly, it was submitted that Ld. CIT(A) erred in facts and in law in holding that depreciation on the fixed assets called for disallowance under Section 11(6) of the Act. 6. In response, Ld. D.R. placed on the disallowance made by Ld. CIT(A) in the appellate order. 7. It would be useful to reproduce Section 11(6) of the Act for ready reference: "The appellant invites reference to the provisions of Section 11(6) of the Income Tax Act, 1961 which read as under:- Sec. 11(6) In this section where any income is required to be applie....