DIT v. Society for Applied Microwave Electronic Engineering & Research IIT Campus Hill Side

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The Tax Publishers2019 TaxPub(DT) 3642 (Bom-HC)

INCOME TAX ACT, 1961

Section 32(1)

Depreciation was to be allowed on assets the entire cost of which had already been allowed as application of income under section 11(1)(a), while computing income of a charitable trust.

Depreciation - Allowability - Capital expenditure already allowed under section 11(1)(a) as application of income -

Assessee-trust claimed depreciation. AO disallowed the depreciation alleging that this claim of depreciation tantamount to double deduction as assessee had already claimed deduction under section 11 as application of income. CIT(A) allowed the claim of depreciation, relying on the decision of the Court in the case of CIT v. Institute of Banking Personal Services (2003) 264 ITR 110 (Bom): 2003 TaxPub(DT) 1343 (Bom-HC). Held: Following the decision of the Court in CIT v. Institute of Banking Personnel Services (2003) 264 ITR 110 (Bom): 2003 TaxPub(DT) 1343 (Bom-HC), CIT(A) was justified in allowing assessee's claim of depreciation on assets acquired and put to 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.

Followed:CIT v. Institute of Banking Personnel Selection (2003) 264 ITR 110 (Bom): 2003 TaxPub(DT) 1343 (Bom-HC).

REFERRED : Escorts Ltd. v. UOI & Ors. (1993) 199 ITR 43 (SC) : 1993 TaxPub(DT) 785 (SC),ADIT v. Society for Applied Microwave Electronic Engineering & Research IIT Campus Hill Side [ITA. No. 5647/Mum/2011, C.O. No. 90/Mum/2012, dt. 5-6-2013].

FAVOUR : In assessee's favour.

A.Y. : 2008-09

INCOME TAX ACT, 1961

Section 11(1)(a)