9911796707
TMI Blog2012 (6) TMI 833X X X X Extracts X X X X X X X X Extracts X X X X ..... prescribed fee for admission of students. Depreciation claimed by the assessee trust - Held that:- Where an assessee trust is claiming depreciation on assets where cost of the relevant assets stood claimed as an application of income for a preceding and/or the current year under S.11(1), its claim under S.32(1)is eligible only in respect of business assets and where entire cost of the asset stands allowed by way of application of income under S.11(1), the depreciation claimed by the assessee under S.32(1) is not allowable as the trust is not undertaking any business activity. In view of the above, the Assessing Officer is directed to verify in respect of each asset on which depreciation claimed, whether the value of such asset was in fact ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the case of Escorts Ltd. and another Vs. Union of India. (vii) The CIT(A) erred in holding that the decision of the Apex Court in Escorts Limited, is not applicable to Trusts as the income is not required to be computed in terms of sections 28 to 44 of the I.T. Act, but is required to be completed in accordance with sections 11 to 13 of the I.T.,Act. " 3. At the time of hyearing, none appeared on behalf of the assessee despite notice of hearing. Not even an adjournment petition has been received. In the circumstances, we have heard the learned Departmental Representative and proceed to dispose off this appeal exparte, qua the assessee. 4. We heard the Learned Departmental Representative and perused the material on record. We find t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is found that the educational institution received any money over and above the fees prescribed for the courses. Same view was taken by Apex Court in the case of Islamic Academy of Education and another Vs. State of Karnataka & another (2003) 6 SCC 697. If the donations were received compulsorily for admission of students, the assessee is not entitled for exemption either u/s 10(23C) or u/s 11 of the IT Act. Since the lower authorities have not examined the collection of capitation fees in this case, in our opinion, the matter requires to be examined by the assessing officer whether the assessee is collecting the capitation fees from students or not and it is necessary for bringing the actual facts on record for deciding the issue effective ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of depreciation. He was of the view that since the purchase of capital asset used to promote the objective of the trust is allowed as application of income, depreciation is not allowable on capital asset where the entire cost of acquisition is either written off in the first year itself or the cost of acquisition is treated as application of income. The Assessing Officer has drawn support from the decision of the Apex Court in the case of Escorts Ltd. (199 ITR 44). The CIT(A), on appeal, has allowed the claim of the assessee. Against the order of the CIT(A), Revenue is in appeal before us on this issue. 6. We heard both the parties on this issue. Similar issue came up for consideration before the Jaipur Bench of this Tribunal in the case o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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