2019 (1) TMI 991

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..... s charitable purposes u/s 11(1)(a) of the Act - the amendment in section 11(6) of the Act brought about by Finance (No.2) Act, 2014 which became effective from Assessment Year 2015-16 and prohibited the allowance of depreciation in such cases, is prospective in nature. Thus the assessee is entitled to be allowed depreciation u/s 32 on assets whose cost has been allowed as application towards charitable purposes. - Decided in favour of assessee.
Shri N. V. Vasudevan, Vice President And Shri Jason P Boaz, Accountant Member For the Assessee : Shri. V. Srinivasan, Advocate For the Revenue : Shri. C. H. Sundar Rao, CIT-DR-I ORDER PER SHRI JASON P BOAZ, A.M. : This appeal by the assessee-trust is directed against the ex-parte order of CIT .....

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..... ce, probabilities, facts and circumstances of the case. 2. The learned CIT[A] is not justified in disposing off the appeal without allowing sufficient and real opportunity to the appeallant to represent its case and consluding that the appellant is not interested in prosecuting the appeal erroneously and in gross violation of the principles of natural justice and consequently the impugned order passed deserves to be cancelled. 3. Without prejudice to the above, the learned CIT[A] is not justified in sustaining the disallowance of Depreciation amounting to ₹ 10,04,041/- on the ground that the capital expenditure was already allowed and the allowance of Depreciation would amount to double deduction under the facts and in the circums .....

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..... the capital expenditure was already allowed as application towards charitable purposes and allowance of depreciation thereon would amount to double deduction. In support of the assessee's claim that it is entitled to depreciation u/s 32 of the Act on assets whose cost has been allowed as application towards charitable purposes, the learned AR for the assessee placed reliance on the decision of the Hon'ble Apex Court in the case of CIT Vs. Rajasthan and Gujarati Charitable Foundation (2018) (402 ITR 441) (SC). 6.2 Per contra, the learned DR supported the orders of the authorities below on this issue. 6.3.1 We have heard the rival contentions of both parties and perused and carefully considered the material on record; including the judicial .....

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