9911796707
TMI Blog2012 (8) TMI 355X X X X Extracts X X X X X X X X Extracts X X X X ..... modified. The appellate order passed by the learned CIT (Appeals) in defiance of the ratio of the judgments of the hon'ble High Court of Gujarat and the ITAT, Ahmedabad Bench which are binding on all the Income Tax authorities is perverse. 2. The learned CIT (Appeals) has grossly erred in law and on facts of the case in confirming the order u/s. 143(3) of the I.T. Act passed by the AO for A.Y. 2007-08. 3. The learned CIT(Appeals) has grossly erred in law and on facts of the case in confirming the disallowance made by the AO of the appellant's legitimate claim for depreciation of Rs. 2,44,99,739/-, in utter disregard to the judgment of the hon'ble High Court of Gujarat in the case of CIT v/s. Seth Manilal Ranchhoddas vishram Bhavan Trust ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ase law and also followed the decision of ITAT 'A' Bench in case of Ahmedabad South Indian Association in ITA Nos. 2331/Ahd/2004, 84/Ahd/2006, 2782/Ahd/2007 and 3208/Ahd/2007, dated 24.07.2009 where Hon'ble 'A' Bench had observed as under: "In our considered view the Hon'ble Gujarat High Court in the above referred case were concerned with the computation of income of the trust in the normal commercial sense and had not considered whether the amount of depreciation would be considered as application to arrive at 85% of the receipts in addition to investment in the assets already allowed as application in the earlier year. The allowance of depreciation as further application of receipts in subsequent year would apparently be a double applic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... here is no case for interference in the order of ld. CIT (A). 10. The issue of depreciation on the assets owned by the assessee trust and used in their activities is allowable in view of the two judgments referred to by the assessee in the written submissions. In addition to this, above view is supported by the decision of Hon. Madhya Pradesh High Court in CIT vs. Raipur Pallottine Society (1989) 180 ITR 579 (M.P.) wherein Hon. High Court held as under: "Depreciatiojn is the exhaustion of the effective life of a fixed asset owing to "use" or obsolescence. It may be computed as that part of the cost of the asset which will not be recovered when the asset is finally put out of use. The object of providing for depreciation is to spread the e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eal filed by the Revenue is dismissed." 5. Ld. D.R. vehemently argued to confirm the order of ld. CIT(A). 6. We have perused the orders of authorities below and gone through the case law cited by both the side. The assessee had already been allowed assets as expenditure/application of fund. When full value of assets had been adjusted as an expenditure or application of fund, no assets remained to be depreciated. We are respectfully following the decision of Gujarat High Court as well as 'C' Bench decision in above case, in which depreciation has been allowed even capital assets allowed fully as an expenditure. Being judicial precedent, we also allow this appeal in favour of the assessee. 7. In the result, the assessee's appeal is allowed ..... X X X X Extracts X X X X X X X X Extracts X X X X
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