2012 (12) TMI 1068

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..... untant Member: The appeal of the assessee is directed against the order dated 30-12-2011 passed by the Ld. CIT(A)-II, Kozhikode and it relates to the assessment year 2007-08. 2. The only issue urged in this appeal is whether the Ld. CIT(A) is justified in confirming the order of the Assessing Officer in not treating the depreciation amount of ₹ 54.38 lakhs as application of income under se .....

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..... ly, the Assessing Officer did not treat the amount of depreciation as application of income. 4. The Ld. CIT(A), though did not explicitly express, confirmed the order of the Assessing Officer on this issue. Aggrieved, the assessee is in appeal before us. 5. We have heard the rival contentions and perused the record. The Ld A.R placed reliance on the decision rendered by Hon'ble Kerala High Court .....

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..... urposes, as it would result in double deduction of capital expenditure. The view of the AO was upheld by the Tribunal by following the decision of Hon'ble Supreme Court in the case of Escorts ltd & Others Vs. Union of India, reported in 199 ITR 43. The assessee challenged the order of the Tribunal and the Hon'ble High Court upheld the order of the Tribunal with the following observations:- "For t .....

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..... ubsequent years for application for charitable purposes". Since the decision rendered in the case of Lissie Medical Institutions is a later one, the same is binding on the parties herein. Accordingly, we do not find any infirmity in the decision of Ld CIT(A). 7. In the case of Lissie Medical institution, the Hon'ble High Court has given relief with regard to the write back of the depreciation. T .....

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..... of the view that the Tribunal is not entitled to give any such relief as given by the High Court, since the Tribunal has to act within the authority of the provisions of the Act. Accordingly, we decline to give any such direction as given by the Hon'ble High Court. 8. In the result, the appeal filed by the assessee is dismissed. Pronounced accordingly on 07-12-2012.
Case laws, Decisions, J .....

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