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TMI Blog2018 (4) TMI 250X X X X Extracts X X X X X X X X Extracts X X X X ..... t the improvement and development functions of the state. Hence, in view of the decision of the Hon’ble Jurisdictional High Court (supra) as well as the registration granted u/s 12AA of the CIT(E). We are of the opinion that the assessee’s income is not taxable in view of the provisions of section 10(20) of the I.T. Act. As regards the disallowance of depreciation it is now settled principle of law that the cost of acquisition of the asset is allowed an application would not be a ground of disallowance of deprecation. Hence, the addition/disallowance made by the AO are deleted. - Decided in favour of assessee. - ITA No. 1049/JP/2017 - - - Dated:- 28-3-2018 - Shri Vijay Pal Rao, JM And Shri Vikram Singh Yadav, AM Assessee by : Shr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Bharatpur. The AO while framing assessment has denied the benefit of section 11 of the Act and made an addition of ₹ 50 lacs on account of the profit on sale of plots of land. The AO observed that the assessee has sold land either at reserve price or in the auction carried out for obtaining higher sale which is more than cost of acquisition apportion on such land by the assessee trust. Accordingly, the AO estimated the income from sale of lands at ₹ 50 lacs. The AO also denied claim of depreciation of ₹ 20,73,551/- on the ground that the cost of acquisition of asset is already allowed as expenditure. The assessee challenged the action of the AO before the ld. CIT(A) however, the ld. CIT(A) has confirmed the addition ma ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... than the cost of acquisition of land and therefore earning profit of purchase and sale of land which cannot be treated as charitable. Further, the assessee is not maintaining separate books of accounts showing the transaction of purchase and sale of lands hence, the AO has rightly estimated the income of the assessee at ₹ 50 lacs. 5. We have considered the rival submissions as well as relevant material on record. The AO as well as ld. CIT(A) denied the benefit of section 11 of the Act to the assessee on the ground that the assessee was not granted registration 12A of the Act. The ld. CIT(A) while dealing with this issue has held in para 6.3 as under:- 6.3 I have perused the assessment order as well as submissions made by the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lied upon by counsel for the department are of no help in the facts of the case as the case relied upon by the department was in respect of industrial corporation which was under the statute for the purpose of making profit. The fees and other charges which are covered are statutorily for the development of the Urban area. In that view of the matter, the judgment which sought to be relied upon by the counsel for the respondents, in or considered opinion, would be of importance and the functions which are carried out by the assessee is statutory function. In our considered opinion, under clause-10(20) Sub-clause (3) Municipal Committee and District Board are legal entity entrusted the function of the Government within the control or manage ..... X X X X Extracts X X X X X X X X Extracts X X X X
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