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TMI Blog2017 (11) TMI 1158X X X X Extracts X X X X X X X X Extracts X X X X ..... mputed on commercial basis, however, while doing so it is to be kept in mind that ultimately assessee is a charitable institution and its income for tax purposes is required to be determined by taking into consideration provisions of Section 11 of the Act of 1961 after extending normal depreciation and deductions from its gross income. In computing the income of a charitable institution/trust depreciation of assets owned by such institution is a necessary deduction on commercial principles, hence, the amount of depreciation has to be deducted to arrive at the income available - Decided in favour of the assessee - D. B. Income Tax Appeal No. 209 / 2017, D. B. Income Tax Appeal No. 253 / 2017 - - - Dated:- 14-11-2017 - K. S. Jhaveri And Vi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the asset concerned i.e. a building. Section 32(1) of the Act of 1961 provides for depreciation in respect of building, plant and machinery owned by the assessee and used for business purposes. Income of a charitable trust like the present assessee derived from the depreciable heads is also liable to be computed on commercial basis, however, while doing so it is to be kept in mind that ultimately assessee is a charitable institution and its income for tax purposes is required to be determined by taking into consideration provisions of Section 11 of the Act of 1961 after extending normal depreciation and deductions from its gross income. In computing the income of a charitable institution/trust depreciation of assets owned by such instituti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rsity in the said order of the Tribunal. It is purely a finding of fact and no question of law much less substantial question of law can be said to emerge out of the said order of the Tribunal so as to call for any interference of this Court. In our view, no substantial question of law arises out of the order passed by the Tribunal. Consequently, the appeal, being devoid of merit, is hereby dismissed in limine. No order as to costs. 18. He contended that the view taken by the tribunal is on consideration of facts and it is not a question of law. 19. He has relied upon the judgment of this court in Murari Lal Khandelwal vs. CIT (2003) 263 ITR 642 wherein it has been held as under:- 4. Learned counsel for the assessee Mr. Jha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... issue as stated above, the same is required to be answered in favour of the assessee that u/s 11 13, the expenses which are transferred to the private university while holding Sec.13 definition and explanation and substantial controlled or substantial transferred are not in their name. It may be private institution which is a creation of statue having controlled by the same trustee and will not indirectly covered u/s 13 merely because the trustees of the beneficiaries of the trust or any person controlling the trust which is part of another institution. The object is to see where even transfer for educational purpose or not that has been done. In that view of the matter, the contention that the university will be covered u/s 13, in our c ..... X X X X Extracts X X X X X X X X Extracts X X X X
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