2014 (12) TMI 145

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..... een spent for acquisition of assets would not mean that thereafter the depreciation on these assets in subsequent years cannot be taken into account - it is not that the Tribunal followed the course and unknown to law - the Tribunal was justified in allowing the depreciation on capital assets as deduction in computing the income – the order of the Tribunal is upheld – Decided against revenue. - Income Tax Appeal No. 1305 of 2012, Income Tax Appeal No. 22 of 2013 - - - Dated:- 20-11-2014 - S. C. Dharmadhikari And A. A. Sayed,JJ. For the Petitioner : Mr. P. C. Chhotaray For the Respondents : Mr Percy Pardiwala, Sr Adv with Mr Kunal Vajani and Mr H Vaswani ORDER P.C. These two Appeals by the Revenue raise identical qu .....

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..... nted the application of income. If these expenses were more than 85% of the income, the entire income would be entitled to exemption. 3. Calculations were provided, but the Assessing Officer proceeded to reject this claim and observed that the gross receipts from the patients cannot constitute the income and the Assessee was running a business venture. Receipts were amounts collected from the paitents for the services rendered by the hospital and the expenses are incurred for earning their income. From the same figures, which have been provided by the Assessee, the Assessing Officer concluded that the net income of ₹ 30,07,85,165/- should have been the base and 85% of the same ought to be spent for the charitable purposes and that .....

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..... concluded that the situation and position is in no way different as was noted in the earlier order of the Tribunal and pertaining to the same Assessee. The details of income and expenditure for the Assessment Year 2006-07 as given by the Assessee and reproduced in para 3 of the Tribunal's order shows that 85% thereof is applied and for the purposes of charitable activities. It is, in these circumstances, that the Tribunal concluded that the Revenue's Appeal will have to be dismissed. 8. The Commissioner's finding was, thus, upheld. In regard to other claim and which is for the purpose of claiming the depreciation, the Tribunal has merely referred to the facts and in para 5.1 invited the attention of the concerned officials t .....

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