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TMI Blog2012 (3) TMI 663X X X X Extracts X X X X X X X X Extracts X X X X ..... be deleted. 2. That the ld. CIT(A) has erred in law while upholding the voluntary donation of ₹ 1,08,000/- received during the relevant financial year 2006-07 as income from other sources and ignoring all the evidences being furnished by the assessee in its support and the addition of ₹ 20,000/- in respect of donation has been deleted by the ld. CIT(A) in the same manner other donations of ₹ 1,08,000/- may please be deleted. 3. That the ld. CIT(A) has erred in upholding the disallowance of depreciation of ₹ 1,36,57,327/- claimed as application of income by the assessee and therefore, the same may please be allowed as the same was also allowed by ITAT, Chandigarh in the case of Market Committee, Shahbad (M) v. ACIT, Kurukshetra, ITA No. 471/Chd/2009 and therefore the same may please be allowed. 4. The ld. CIT(A) has erred in applying the ratio of the case with respect of Escorts Ltd. v. Union of India [1993] 199 ITR 43(SC)in disallowing depreciation, while the status of the appellant has been ignored. Therefore, depreciation of ₹ 1,36,57,327/- may please be allowed. 3. At the outset, the learned counsel for the assessee has stat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Act and had maintained due record of the identity indicating the name and address of the person making the contribution. It has been contended that as such, the ld. CIT(A) has gone wrong in observing that the assessee should have maintained anything beyond the requirements of section 115 BBC(3) of the Act. 8. The learned DR, on the other hand, has contended that merely name and address does not amount to identity; that a number of opportunities were granted to the assessee to prove the identity of the donors, as is available from the impugned order, but there was no compliance from the side of the assessee; and that therefore, the ld. CIT(A) is perfectly justified in upholding the order of the AO in this regard. 9. Undisputedly, the assessee has maintained the record of the identity of the donors, in the shape of the names of the donors and their addresses. 10. The requirement u/s 115 BBC(3) is to maintain a record of identity indicating the name and address of the person making such contribution and such particulars as may be prescribed . Now, the provisions of section are to be read as they are and nothing more can be supplied thereto, nor can anything be subtracted ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... v Social Charitable Foundation [2005] 278 ITR 152/146 Taxman 569 (Delhi), it has been held that section 68 has no application because the assessee had disclosed the donation of ₹ 18,24,000/- as its income and it cannot be disputed that all receipts other than corpus donation would e the income in the hands of the assessee. There was, therefore, full disclosure of income and its application for charitable purposes. In view of this decision, the provisions contained in section 68 cannot be invoked as the amount has already been disclosed as income. Following this decision, it is held that the amount of ₹ 19,25,047/- was taxable as income in the hands of the assessee. 13. The above observations in Hans Raj Samarak Society (supra), squarely support our foregoing observations to the effect that the assessee had duly complied with the provisions of section 115 BBC(3) of the Act. It remains undisputed that the facts inter se the assessee s case and those in Hans Raj Samarak Society (supra), are mutatis mutandis . 14. As such, the assessee s grievance by way of Ground No.1 is justified and is accepted, as such. Accordingly, the addition of ₹ 18,65,000/- is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ation of income of the trust during the year in which the assets were acquired. 21. Escorts Ltd. (supra), has also been distinguished in CIT v. Market Committee, Pipli , 330 ITR 16, observing, inter alia, as follows:- In all fairness to the learned counsel for the Revenue, reference is made to the judgment of the Hon ble Apex Court in Escorts Limited s case [1993] 199 ITR 43(SC), on which reliance has been placed by the learned counsel for the Revenue. The Hon ble Supreme Court in that case was dealing with a case relating to two deductions both under sections 10(2)(vi) and 10(2)(xiv) of the 1922 Act or both under sections 32 (1)(ii) and 35(1)(iv) of the Act. The assessee therein had incurred expenditure of a capital nature on scientific research relating to the business which resulted into acquisition of an asset. The assessee had sought to claim a specified percentage of the written down value of the asset as depreciation and at the same time claimed deduction, in five consecutive years of the expenditure incurred on the acquisition of the asset. The Apex Court observed (head note): Where a capital asset used for scientific research related to the business of the as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ₹ 1,46,38,551/-, as application of income. He observed that the assessee had claimed interest of these amounts as application of income, due to which, the repayment of loan would amount to double deduction. 26. The ld. CIT(A), however, treated the repayment of loan as application of income. 27. The ld. DR has contended that while wrongly according such treatment to the repayment of loan, the ld. CIT(A) has failed to consider, as observed by the AO, that the assessee having claimed interest on the loans as application of income, the repayment of loan would amount to double deduction. 28. The learned counsel for the assessee, on the other hand, has strongly supported the impugned order, contending that the repayment of loan taken for construction of building has been held to be a valid application of income in DIT(Exemp) v. Span Foundation , 178 Taxmann 436(Del), as referred by the ld. CIT(A); that it is not necessary that in order to be application within the meaning of section 11 of the Act, and the amount should be spent for charitable purposes only after the trust has earned the profits and that it is not necessary that the amount of difference spent on charita ..... X X X X Extracts X X X X X X X X Extracts X X X X
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