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TMI Blog2015 (6) TMI 235X X X X Extracts X X X X X X X X Extracts X X X X ..... tutions including paramedical and nursing colleges. In the course of assessment u/s. 143(3) of the Act for AY 2011-2012 the AO noticed from the details of depreciation claimed, that the depreciation was claimed on assets, the cost of acquisition of the said assets had been claimed by the assessee as capital expenditure towards application of funds towards the objects of the trust and allowed as such. According to the AO, allowing such a claim would amount to allowing double deduction. On the facts of the present case, he was of the view that the decision of the Hon'ble Supreme Court in the case of Escorts Limited & another Vs. Union of India 199 ITR 43 is squarely applicable, wherein it has been categorically held that when deduction u/s 35 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... endered in the following cases:- i) Manipal Hotel & Restaurant Management College Trust, (Manipal in ITA Nos. 187/UDP/CTI(A)MNG/10-11, dated 14.3.2013. ii) Manipal Academy of Higher Education, Manipal in ITA No. 43/UDP/CIT(A) MNG/13-14, dated 21.1.2014. iii) Academy of General Education, Manipal, in ITA No. 75/UDP/CIT(A)MNG/10- 11, dated 14.3.2013.. iv) Dr. T.M.A. Pal Foundation, Manipal in ITA No. 76/UDP/CIT(A)MNG/12-13, dated 14.3.2013. 6. Aggrieved by the order of the CIT(A), the Revenue has raised grounds No.2 to 2.5 before the Tribunal. 7. We have heard the submissions of the ld. DR, who relied on the order of AO. We have considered the order of the AO. Identical issue came up for consideration before ITAT Bangalore Bench in the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t depreciation can be claimed by a charitable institution in determining percentage of funds applied for the purpose of charitable objects. Claim for depreciation will not amount to double benefit. The decision of the Hon'ble Supreme Court in the case of Escorts Ltd. 199 ITR 43 (SC) have been referred to and distinguished by the Hon'ble Court in the aforesaid decisions. 21. The issue raised by the revenue in the ground of appeal is thus no longer res integra and has been decided by the Hon'ble Punjab & Haryana High Court in the case of CIT v. Market Committee, Pipli, 330 ITR 16 (P&H). The Hon'ble Punjab & Haryana High Court after considering several decisions on that issue and also the decision of the Hon'ble Supreme Court in the case of E ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e (No.2) Act, 2014 w.e.f. 1.4.2015 by insertion of sub-section (6) to section 11 of the Act, which reads as under:- "(6) In this section where any income is required to be applied or accumulated or set apart for application, then, for such purposes the income shall be determined without any deduction or allowance by way of depreciation or otherwise in respect of any asset, acquisition of which has been claimed as an application of income under this section in the same or any other previous year." 9. As already stated, the aforesaid amendment is prospective and will apply only from A.Y. 2015-16. In view of the above legal position, we are of the view that the order of the CIT(A) does not call for any interference. Consequently ground ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ry forward was refused by the AO in order to keep the issue alive. 11. On appeal by the assessee, the CIT(A) directed the AO to allow claim of the assessee and in doing so, followed the decision rendered by the ITAT Bangalore in the following cases:- "This issue was also before me in the following Trusts cases, wherein I have decided the issue in favour of the assessee trusts. i) Manipal Hotel & Restaurant Management College Trust, (Manipal in ITA Nos. 187/UDP/CTI(A)MNG/10-11, dated 14.3.2013. ii) Manipal Academy of Higher Education, Manipal in ITA No. 43/UDP/CIT(A) MNG/13-14, dated 21.1.2014. iii) Academy of General Education, Manipal, in ITA No. 75/UDP/CIT(A)MNG/10- 11, dated 14.3.2013.. iv) Dr.T.M.A. Pal Foundation, Manipal in ITA N ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 64 ITR 439 (Raj); CIT Vs. Shri Plot Swetamber Murti Pujak Jain Mandal 211 ITR 293 (Guj.). In CIT Vs. Institute of Banking Personnel Selection 264 ITR 110 (Bom), it was held that in case of charitable trust whose income is exempt under s. 11, excess of expenditure in the earlier years can be adjusted against income of subsequent years and such adjustment would be application of income for subsequent years and that depreciation is allowable on the assets the cost of which has been fully allowed as application of income under s. 11 in past years. In Govindu Naicker Estate VS. ADIT 248 ITR 368 (Mad), the Hon'ble Madras High Court held that the income of the trust has to be arrived at having due regard to the commercial principles, that s. 11 is ..... X X X X Extracts X X X X X X X X Extracts X X X X
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