2013 (10) TMI 1549 - AT - Income Tax

Summary

Issues involved: Appeal against rejection of depreciation claim by charitable institution under sec.11(1) of Income-tax Act, 1961.

Assessment Year 2009-10:
The Revenue appealed against the Commissioner of Income-tax(Appeals)-I's order rejecting the depreciation claim of a charitable institution under sec.11(1) as it was considered a double deduction, having already been treated as application of funds for charitable purposes.

First Appeal Decision:
The Commissioner of Income tax (Appeals) allowed the depreciation claim, citing judgments from Punjab & Haryana High Court and Income-tax Appellate Tribunal, Chennai Benches. The Revenue contested, stating matters were under appeal at the Hon'ble Madras High Court.

Tribunal Decision:
The Tribunal upheld the Commissioner's decision, noting no contrary decision from the Jurisdictional High Court. Citing CIT vs. Vegetable Products Ltd., it held in favor of the assessee, dismissing the Revenue's appeal.

This judgment highlights the interpretation of law regarding depreciation claims by charitable institutions and the precedence of favorable court decisions in such matters.