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TMI Blog2021 (11) TMI 501X X X X Extracts X X X X X X X X Extracts X X X X ..... on is AY 2010-11, the decision rendered by Hon'ble Supreme Court is applicable to the facts of the present case. Since the view taken by Ld. CIT(A) is contrary to the binding decision rendered by Hon'ble Supreme Court, his view on this issue cannot be sustained. Accordingly, we set aside his order on this issue. Whether repayment of loan is application of income or not? - CIT (Exemptions) has taken the view that if the asset acquired out of loan proceeds had been allowed as application of income, then the repayment of loan cannot be considered as application of income again, as the same will result in double deduction. A.O. has not examined this issue during the course of assessment proceedings - there is merit in initiation ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... days. The assessee has filed an affidavit requesting the bench to condone the delay. In the affidavit, it is stated that the assessee's income tax matters were handled by a Chartered Accountant named Shri B.S. Ravi Kumar. It is stated that he did not advise the assessee to challenge the revision order passed by Ld. CIT (Exemptions). When the assessee approached the present counsel, he was advised to challenge the revision order. Accordingly, the present appeal came to be filed by the assessee before the Tribunal. The assessee has also filed an affidavit furnished by Shri Ravi Kumar, Chartered Accountant. Accordingly, we are of the view that there is reasonable cause for the delay in filing appeal before the Tribunal. Accordingly, we co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r assessment year 2010-11 disallowing the claim of depreciation and also repayment of loan. Aggrieved, the assessee has filed this appeal before us. 4. We heard the parties and perused the record. The issue relating to depreciation i.e. whether depreciation is allowable on fixed assets, whose cost have been allowed as application of income has since been settled by Hon'ble Supreme Court in the case of CIT Vs. Rajasthan Gujarat Charitable Foundation, Pune (2018) 402 ITR 441, wherein the Hon'ble Supreme Court has held that the depreciation can be treated as application of income even if the expenditure on acquisition of capital asset was treated as application of income. We notice that the Income tax Act has been amended from AY ..... X X X X Extracts X X X X X X X X Extracts X X X X
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