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TMI Blog2011 (9) TMI 1113X X X X Extracts X X X X X X X X Extracts X X X X ..... ted against the order of the Commissioner of Income-tax (Appeals)-III , Pune dated 26.02.2010, which in turn has arisen from an order passed by the Assessing Officer under sect ion 143(3) of the Income-tax Act , 1961 (in short the Act ), pertaining to the assessment year 2005-06. 2. Although the Revenue has raised multiple Grounds of appeal, but essentially the grievance of the Revenue is tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r section 12A(a) of the Act with the Commissioner of Income-tax. While finalising the assessment, the Assessing Officer noticed that the assessee had claimed depreciation of ₹ 59,44,712/- on assets whose cost had been treated as application of income in the past years. As per the Assessing Officer, such depreciation claim was not allowable, since 100% of the corresponding capital expenditure ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the past years the capital expenditure on the relevant asset has already been allowed as application of income. In response to such plea, the learned Counsel, appearing for the respondent-assessee, pointed out that similar argument from the side of the Revenue was considered by the Hon ble Bombay High Court in the case of CIT v Institute of Banking 264 ITR 110 (Bom) wherein the issue was decid ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he case of Institute of Banking (supra). As per the Hon ble High Court, merely because the cost of acquisition of an asset has been claimed as an application of income for charitable purposes in the past years, the assessee could not be denied depreciation in respect of such assets in a subsequent year. 8. In so far as the reliance placed by the learned Departmental Representative 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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