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TMI Blog2019 (11) TMI 392X X X X Extracts X X X X X X X X Extracts X X X X ..... liable to be taxed u/s 115BBC(1) of the Act. Disallowance of the claim of depreciation - Revenue has disallowed the claim on the grounds that the amount utilized for acquiring the assets have already been claimed and allowed u/s 11(1) - HELD THAT:- Hon ble Supreme Court in the case of Rajasthan and Gujarat Charitable Foundation Pune [2017 (12) TMI 1067 - SUPREME COURT ] held that income of a Charitable Trust derived from building, plant and machinery and furniture was liable to be computed in normal commercial manner although the Trust may not be carrying on any business and the assets in respect whereof depreciation is claimed may not be business assets. In all such cases, section 32 of the Income-tax Act providing for depreciation for computation of income derived from business or profession is not applicable. However, the income of the Trust is required to be computed under section 11 on commercial principles after providing for allowance for normal depreciation and deduction thereof from gross income of the Trust. - Decided in favour of the assessee. - ITA No. 5773/Del/2015 - - - Dated:- 5-9-2019 - Sh. Amit Shuk la, Judicial Member And Dr. B. R. R. Kumar, Ac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of income-tax with which the assessee would have been chargeable had his total income been reduced by the aggregate of anonymous donations received in excess of the amount referred to in sub-clause (A) or sub-clause (B) of clause (i), as the case may be.] (2) The provisions of sub-section (1) shall not apply to any anonymous donation received by- (a) any trust or institution created or established wholly for religious purposes; (b) any trust or institution created or established wholly for religious and charitable purposes other than any anonymous donation made with a specific direction that such donation is for any university or other educational institution or any hospital or other medical institution run by such trust or institution. (3) For the purposes of this section, anonymous donation means any voluntary contribution referred to in sub-clause (iia) of clause (24) of section 2 , where a person receiving such contribution does not maintain a record of the identity indicating the name and address of the person making such contribution and such other particulars as may be prescribed.] ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... come from the donors but were retrieved from internet accessing the website of ministry of corporate affairs. The plea of assessee, having transaction made through bank account, does not hold much weight because it merely shows entry from the bank but does not throw any light on the nature of transactions and the question remained unanswered whether the company/concern/person will own up that account or not. Vide order sheet entry dated 07-02-2013, the assessee was specifically required to furnish the copy of bank accounts, P L A/c, balance sheet, statement of affairs, copy of acknowledgement of Income tax returns along with confirmations of donors. Even after a lapse of one month time complete details in respect of donors as desired by the undersigned were not furnished by the assessee. The discrete inquiry made by this office could not serve any purpose as the above name company is not found at given address. In compliance to these letters very few donors have confirmed their donations and the same are placed on record. Considering this fact, the assessee was asked to produce the donors but could not produce the donors and utterly failed in d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... me from the temple property which was a Trust property. During the course of assessment proceedings for assessment years 1977-78, 1978-79 and 1979-80, the assessee claimed depreciation on the value of the building @ 2 % and they also claimed depreciation on furniture @ 5%. The question which arose before the Court for determination 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 shall be computed in accordance with section 30 to section 43C. That, section 32(1) of the Act provides for depreciation in respect of building, plant and machinery owned by the assessee and used for business purpos ..... X X X X Extracts X X X X X X X X Extracts X X X X
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