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TMI Blog2018 (1) TMI 853X X X X Extracts X X X X X X X X Extracts X X X X ..... Officer, Ward-3, Anand, vide appeal no.CAB/IV-A-118/2013-14. 2. Assessee has taken following Grounds of appeal: 1. On the facts and in the circumstances of the case and in Law The Ld. C.I.T. (A) erred in holding that the interest income of Rs. 2,09,98,763/- which was agreed by the assessee for taxation necessarily include the undisclosed interest income of Rs. 23,08,970/-, discovered by the A.O. as per 26AS data, and unilaterally accepted the changed version of the assessee. 2. On the facts and in the circumstances of the case and in Law The Ld. C.I.T, (A) erred in deleting the addition made by the A.O. on account of disallowance of depreciation of Rs. 1,85,78,132/- on assets purchased out of grant received u/s.35AC of the I.T. Act, w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s. 2,09,98,763/- which is much higher than interest income of Rs. 1,81,76,676/- worked out by assessing officer based on TDS as per Form 26AS. In view of these facts, assessee's contention is acceptable. Therefore, no amount is required to be added to the returned income. In our considered opinion, ld. CIT(A) has rightly granted the relief to the assessee. 5. The Second ground of appeal is with respect to deleting the disallowance of depreciation of Rs. 1,85,78,132/- on assets purchase out of grant received u/s.35AC of the I.T. Act towards depreciation in respect of Infrastructure facility developed by cardiac and cancer facility. 6. During the course of assessment proceedings, the appellant was asked to substantiate his claim of depr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the hands of donee as if assets purchased under the normal circumstances. Even otherwise, as submitted by appellant, in the case of Charitable Trust, income is to be computed under provisions of section 11 to 13 and not under provisions of section 28 to Section 43D which is applicable to other assessee and the thus provisions contained in those sections are not applicable to Charitable Trust approved u/s.12A of I.T. Act. In this regard, appellant relied on the judgment of Gujarat High Court in case of Ahmedabad South Indian Association Charitable Trust (Tax appeal no. 933,934 to 936 of 2010) which is attached in paper book at Page No. 7 to 10. The jurisdictional High court held that even if assets purchased by the trust are allowed deduct ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ination was : whether depreciation could be denied to the assessee, as expenditure on acquisition of the assets had been treated as application of income in the year of acquisition? It was held by the Bombay High Court that section 11 of the Income Tax Act makes provision in respect of computation of income of the Trust from the property held for charitable or religious purposes and it also provides for application and accumulation of income. On the other hand, section 28 of the Income Tax Act deals with chargeability of income from profits and gains of business and section 29 provides that income from profits and gains of business ahll be computed in accordance with section 30 to section 43C. That, section 32(1) of the Act provides for dep ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... judgment of the Bombay High Curt, we answer question No. 1 in the affirmative i.e., in favour of the assessee and against the Department. 4. Question No. 2 herein is identical to the question which was raised before the Bombay High Court in the case of Director of Income-tax (Exemption) v. Framjee Cawasjee Institute [1993] 109 CTR 463. In that case, the facts were as follows: The assessee was the Trust. It derived its income from depreciable assets. The assessee took into account depreciation on those assets in computing the income of the Trust. The ITO held that depreciation could not be taken into account because, full capital expenditure had been allowed in the year of acquisition of the assets. The assessee went in appeal before the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the Act vide Finance Act No. 2/2014 which became effective from the Assessment Year 2015-2016. The Delhi High Court has taken the view and rightly so, that the said amendment is prospective in nature. It also follows that once assessee is allowed depreciation, he shall be entitled to carry forward the depreciation as well. For the aforesaid reasons, we affirm the view taken by the High Courts in these cases and dismiss these matters." 9. In our considered opinion, ld. CIT(A) has passed reasoned and detailed order and now matter is squarely covered by above said judgment of Hon'ble Apex Court. In these circumstances, we are not inclined to interfere in the order passed by the ld.CIT(A). 10. In the result, appeal filed by the departme ..... X X X X Extracts X X X X X X X X Extracts X X X X
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