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TMI Blog2021 (3) TMI 1003X X X X Extracts X X X X X X X X Extracts X X X X ..... ollowed the judgement of the Hon ble Jurisdictional High Court in the case of CIT vs. Institute of Banking Personnel Selection [ 2003 (7) TMI 52 - BOMBAY HIGH COURT] wherein rejected the argument on behalf of the revenue that section 32 of the Income-tax Act was the only section granting benefit of deduction on account of depreciation. It was 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e of clarity and brevity, the facts relevant to the appeal in ITA No.2548/PUN/2017 for the assessment year 2010-11 are stated herein. 3. The Revenue raised the following grounds of appeal in ITA No.2548/PUN/2017 which read as under :- 1) Whether in the facts and in the circumstances of the case and in law the Ld. CIT(A) was right in allowing the appeal of the assessee by ignoring the facts that assessee society like charitable or religious institutions are governed by almost the separate or independent provisions of Section 11,12, 12A, 12AA 13 and these provisions are independent code in itself in Chapter III of the Income Tax Act, 1961 and claim of depreciation u/s 32 comes under Chapter IV of the Act under the head D - Profit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the above order, an appeal was preferred before the ld. CIT(A), who vide his impugned order following the following judicial precedents allowed the depreciation as application of income :- (a) CIT v Institute of Banking Personnel Selection (IBPS)(2003) 264 ITR 110 (Bom) (b) G.K.R. Charities v Deputy Director of IT (Exemptions)-I (2012) 051 SOT 0538 (Chen Trib) (c) CIT v Society of The Sisters of St. Anne (1984) 146 ITR 28 (Kar) (d) CIT v Raipur Pallottine Society (1989) 180 ITR 579 (MP) (e) CIT v Sheth Manilal Ranchhoddas Vishram Bhavan Trust (1992) 198 ITR 598 (Guj) (f) Director of Income Tax (Exemption) v Framjee Cawasjee Institute (1993) 109 CTR 463 (Bom). (g) CIT v Tiny Tots Education Society (201 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... T vs. Institute of Banking Personnel Selection (IBPS) [2003] 131 Taxman 386 wherein the Hon ble Jurisdictional High Court had held as follows :- 3. As stated above, the first question which requires consideration by this Court is: whether depreciation was allowable on the assets, the cost of which has been fully allowed as application of income under section 11 in the past years? In the case of CIT v. Munisuvrat Jain 1994 Tax Law Reporter, 1084 the facts were as follows. The assessee was a Charitable Trust. It was registered as a Public Charitable Trust. It was also registered with the Commissioner of Income Tax, Pune. The assessee derived income from the temple property which was a Trust property. During the course of assessment proce ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in computing the real income of the assessee on general principles or under section 11(1)(a) of the Income-tax Act. The Court rejected the argument on behalf of the revenue that section 32 of the Income-tax Act was the only section granting benefit of deduction on account of depreciation. It was 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. Ho ..... X X X X Extracts X X X X X X X X Extracts X X X X
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