Asstt. CIT v. Medical Relief Society of South Canara

INCOME TAX ACT, 1961

--Charitable trust --Computation of income Depreciation on assets, cost of which allowed as application of income --Held: Following the decision of the Bombay High Court in case of CIT v. Institute of Banking (2003) 264 ITR 110 (Bom) and of the co-ordinate Benches of the Tribunal in cases of Dr. T.M.A. Pai Foundation in ITA Nos. 486 to 491 (Bang) of 2009 dt. 16-2-2009 for assessment years 2001-02 to 2006-07, ACIT v. Adichunchunagiri Trust (2013) 141 ITD 575 (Bang), the CIT(A) was justified in allowing the assessee's claim of depreciation on new assets acquired and put into use during the relevant previous year, even if the entire cost of those assets had been claimed by the assessee and allowed as application of income for charitable purposes.

Income Tax Act, 1961, Sections 11 & 32

Followed:Dr. T.M.A. Pai Foundation in ITA Nos. 486 to 491 (Bang) of 2009 dt. 16-2-2009 for assessment years 2001-02 to 2006-07, ACIT v. Adichunchunagiri Trust (2013) 141 ITD 575 (Bang) and CIT v. Institute of Banking (2003) 264 ITR 110 (Bom)

REFERRED : Escorts Ltd. & Anr. v. UOI (1993) 199 ITR 43 (SC) and Lissie Medical Institutions v. CIT in ITA No. 42 of 2011 dt. 17-2-2012

FAVOUR : In assessee's faovur

A.Y. : 2010-11

IN THE ITAT, BANGALORE A BENCH

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