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TMI Blog2021 (5) TMI 962X X X X Extracts X X X X X X X X Extracts X X X X ..... this appeal is dismissed. Allowance of depreciation on fixed assets - CIT-A allowed deduction - HELD THAT:- CIT(A) has followed the judgement of Hon ble Delhi High Court in the case of DIT(Exemption) vs Charanjiv Charitable Trust [ 2014 (3) TMI 760 - DELHI HIGH COURT] and also the judgement in the case of DIT(Exemption) vs Indraprashta Cancer Society [ 2014 (11) TMI 733 - DELHI HIGH COURT] No infirmity in the order of Ld. CIT(A) and same is hereby affirmed. Thus, Ground No.2 of the appeal raised by the Revenue is dismissed. - ITA No.208/Del/2018 - - - Dated:- 27-5-2021 - Shri G.S. Pannu, Vice President And Shri Kul Bharat, Judicial Member For the Appellant : Sh. R.S.Singhvi, CA Sh.Satyajeet Goel, CA. For the Responde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... st this, the Revenue is in appeal before this Tribunal. 5. Ground No.1 raised by the Revenue in this appeal is against the allowing exemption u/s 11 12 of the Act. 6. Ld. CIT DR supported the assessment order. 7. On the contrary, Ld. Counsel for the assessee submitted that the issue was raised in the earlier years also and the assessee has been successful. He contended that Ld.CIT(A) has followed the decision of predecessor pertaining to Assessment Years 2010-11, 2011-12 2012-13 who followed the decision of the Hon ble Tribunal for the Assessment Year 2009-10. 8. We have heard Ld. representatives of both the parties and perused the material available on record and gone through the orders of the authorities below. Ld.CIT(A) h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in appeal No. 135/2014-15 vide order dated 24/04/2014 allowed exemption under section 11 with all consequential benefits. For the assessment year 2012-13 also, exemption had been denied by invoking the proviso to section 2(15) and the same had been allowed in appeal following the orders of the Hon'ble ITAT in appellant's own case for assessment year 2009-10. 4.1.2. In the current year also exemption has been denied by invoking the proviso to section 2(15) mainly on the ground that the assessee is involved in trade, commerce of business in view of the income from coffee shop and restaurant since these have been held to be business activity. Since the facts of the case are similar to those for earlier assessment years as discusse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... epreciation on assets purchased in earlier years because purchase of such assets had been claimed and allowed as application of income in earlier years. 4.2.2 I have considered the assessment order and the submissions of the appellant. Charitable trusts or institutions are governed by the provisions of sections 11, 12, 1.2A, 12AA and 13 under Chapter III of the Income-tax Act. These sections constitute a complete code governing the grant, cancellation or withdrawal of registration, providing exemption of income and also conditions subject to which a charitable trust or institution is required to function in order to be eligible for exemption. Section 11(1)(a) provides for exemption to the extent income derived from the property held un ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... haritable purpose. As a result, double benefit was being claimed by the trusts and institutions. Therefore, these provisions were required to be rationalized to ensure that double benefit is not claimed and such notional amount does not get excluded from the condition of application of income for charitable purpose. 4.2.4 There are many conflicting judgments of various Hon'ble High Courts, including that of the jurisdictional High Court, both in favour and against allowability of depreciation. The Hon'ble Delhi High Court, in the case of Director of Income Tax (Exemption) vs. Charanjiv Charitable Trust [2014] 267 CTR 305, have held that if the cost of the asset has been allowed as deduction by way of application of income, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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