C.I.T.-Iii,Pune vs Rajasthan And Gujarati Charitable ... on 13 December, 2017
7. The Hon'ble High Court has answered both the questions in
affirmative and against the Revenue. The Hon'ble High Court has
observed that income from properties held under Trust has to be
arrived at in normal commercial manner without classifying under
various heads. Recently, Hon'ble Supreme Court in similar case in the
matter of CIT Vs. Rajasthan& Gujarati Charitable Foundation Poona
(supra) decided similar issue in favour of the assessee. Hon'ble Apex
Court held that in case of assessee-trust registered under section 12A,
even though expenditure incurred for acquisition of capital assets was
treated as application of income for charitable purposes under section
ITA No.2889 /Ahd/2016 with CO
4
11(1)(a), yet depreciation would be allowed on assets so purchased for
calculation of its income. Therefore, respectfully following the above two
decisions of the Hon'ble Courts, we are of the view that the ld.CIT(A)
has not committed any error while allowing the depreciation to the
assessee. We do not find any merit in this appeal. It is rejected.