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TMI Blog2019 (7) TMI 128X X X X Extracts X X X X X X X X Extracts X X X X ..... ee had not furnished details of past years accumulations etc is also factually incorrect since such information was filed by the assesse vide letter dated 05.02.2005 addressed to the Assessing Officer, copy of which is placed at page No. 87 to 90 of the paper book. In view of the above discussion we are of the considered opinion that the Ld. CIT(A) is fully justified in deleting the addition made by the AO on account of donation given to M/s. Subros Educational Society (registered). The ground raised by the revenue is accordingly dismissed. Addition of sponsorship expenses payable to M/s. Escort Heart Institute and Research Centre - non production of the necessary details - HELD THAT:- Although the amount of ₹ 1.50 crores has been claimed as sponsorship fee payable for organizing seminars and continuing medical education events, however, the assessee furnished only 2 vouchers for ₹ 11,16,000/- which the Assessing Officer has allowed. In our opinion the assessee is duty bound to furnish all the requisite details for the examination of the AO especially when an amount has been claimed as deduction on the basis of the claim made by another institution as sponsorshi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 3. Facts of the case in brief are that the assessee is a society registered under section 12A of the Act and also u/s. 80 G of the Act. It filed its return of income on 30.03.2013 declaring nil income. During the course of assessment proceedings the Assessing Officer asked the assessee to produce complete details of donation paid for ₹ 2,05,02,400/- which includes amount given to M/s. Subros Educational Society (registered) ₹ 2 crores. The assessee filed the details of payment made as donation alongwith a certificate from M/s. Subros Educational Society (registered) confirming that they have received donation of ₹ 2 crores. 4. The Assessing Officer, however, was not satisfied with the above submission on the ground that the purpose of the donation and the basis of selection of the donee is not satisfactorily substantiated. According to him mere confirmation of the donee is not sufficient to substantiate the allowablity. He observed that the donation to an educational society is not in consonence with the aims and objects of the assessee society and the assessee did not furnish the details of past accumulation u/s. 11(2) of the IT Act. H ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Assessing Officer could have made enquiries from the donee which he did not do. So far as the observation of the Assessing Officer that assessee has not filed the details of past accumulation and their utilization is concerned, he noted that the assessee has filed all those details. He further noted that the various adverse inferences drawn by the Assessing Officer are uncalled for. He accordingly deleted the addition. 7. Aggrieved with such order of the CIT(A), the revenue is in appeal before the Tribunal. 8. We have considered the rival arguments made by both the sides and perused the material available on record. From the various details filed in the paper book we find the assessee, during the course of assessment proceedings has filed complete details of donation of ₹ 2 crores including a resolution of the Board of Governors approving the donation and the confirmation of the donee. We find merit in the arguments of the Ld. Counsel for the assesee that the Assessing Officer could not enquire into the selection of the donee or the purpose of the donation unless the genuineness is doubted. It has been held in various decisions that donation by o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ubmitted that the payment of ₹ 1.50 cores to EHIRC Ltd. was substantiated by details and evidence including a request letter and there was no requirement in law to provide copies of vouchers evidencing expenses incurred by the donee. The sum of ₹ 1.50 crores was paid by cheque minus TDS and related to the area of charity in which the assessee was engaged i.e. medical relief. As it was a routine item of expenditure incurred even in earlier years, a resolution of governing body as sought by the Assessing Officer was not required. 12. Based on the arguments advanced by the Ld. CIT(A) deleted the addition by observing as under :- As regards Ground No.4 the solitary ground on which the disallowance has been made is the non-production of the relevant vouchers pertaining to the expenses incurred by EHIRC Ltd. out of the sponsorship fee of ₹ 1.5 crores paid to the said institution. In my view the assessee was not expected to produce vouchers of expenses incurred by EHIRC Ltd. and the evidence produced namely the request letter from EHIRC Ltd. which ran a medical facility of international repute, the nexus of the amount paid ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r in which such assests were purchased. 16. After hearing both the sides we find the Assessing Officer disallowed depreciation of ₹ 3,82,216/- claimed in the income and expenditure account on the ground that the assessee has already claimed gross of amount of such assets as application of income in the year in which it was purchased. He, therefore, held that the same is not allowable and accordingly made the addition. We find the CIT(A) relying on various decisions held that assessee is entitled to claim depreciation even if the value of the asset has been claimed as application of income in the year of purchase in the light of various decision and in conformity with the past assessment. According to the CIT(A) the Act was amended w.e.f. 01.04.2015 to deny deduction on account of depreciation and not for the earlier years. We do not find any infirmity in the order of the Ld. CIT(A) on this issue. The Hon ble Supreme Court in the case of CIT Vs. Rajasthan and Gujarati Charitable Foundation Poona in Civil Appeal No.7186/2014 order dated 13.12.2017 has already decided the issue in favour of the assessee by holding that depreciation is allowable on ..... X X X X Extracts X X X X X X X X Extracts X X X X
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