Jha Educational Trust , Kolkata vs Ito(Exemption), Ward - 1(1), Kolkata , ... on 29 November, 2019
Tthat depreciation on assets whose acquisition cost has been treated as application of
income in earlier years of purchases has been allowed all along in the past at the time of
assessment. In order to prohibit allowance of such depreciation the Finance Minister made
amendment in Section 11 of the I.T. Act, 1961 by insertion of sub-section 6 in that effective
from 01.04.2015 i.e. from AY 2015 - 16. By this amendment it has been laid out for
determination of income of the Charitable Trust required to be applied or accumulated or
set apart for application, then for such purpose the income shall be determined without any
deduction or allowance by way of depreciation or otherwise in respect of any asset,
acquisition of which has been claimed as an application of income under this section in the
same or in any other previous year. This amendment is prospective and is applicable from
A.V. 2015 -16 and onward. This amendment in section 11 applicable from 01.04.2015 has
been held to be prospective as held by the Hon'ble High Court at Karnataka in the case of
Director of IT (Exemp.) and another - vs. - AL Amen Charitable Trust reported in (2016)
383 ITR 517 (Kar). Accordingly, Jurisdictional Hon'ble High Court at Calcutta in the case
of CIT - Vs- Siliguri Accumulated Market Committee Report in (2014) 366 ITR 51(Calcutta)
has allowed depreciation, in the similar facts of the case. It is respectfully submitted that
precedent and judgment of Jurisdictional Hon'ble High Court at Calcutta should be followed
in the State of West Bengal, and depreciation as such should be allowed. It is submitted that
I have already filed a copy of the judgment in the matter of Director of Income Tax
4
ITA No. 320/Kol/2018
Jha Educational Trust, AY: 2009-10
(Exemption) - Vs- Medical Trust of the 7th day Adventists Reported in (2017) 398 ITR 721
Madras. In the said case the Hon'ble Madras High Court considered all the judgments
passed post amendment of Section 11 including the judgment of the Hon'ble High Court at
Calcutta and after considering particular judgment Kerala High Court in the matter of
Lissie Medical Institution - Vs- CIT (2012) 348 ITR 344 (Kerala) which is not in favour of
the assessee still the Hon'ble Madras High Court allowed the claim of depreciation of the
assessee. In this connection it may be further considered that the judgment of the
Jurisdictional High Court at Calcutta has been passed after the said judgment of the Lissie
Medical Institution and therefore, it is respectfully submitted that the Calcutta High Court
Judgment should be followed."