Case Law Details
ACIT Vs M/s. Mayo College General Council (ITAT Jodhpur)
The deduction of depreciation for Rs.300.37 Lacs as claimed by the assessee was denied by Ld. AO on the reasoning that cost of fixed asset is an application of income and therefore further deduction of depreciation tantamount to double deduction.
The Ld. CIT(A) allowed depreciation by following the decision of Hon’ble Karnataka High Court in the case of DIT V/s Al-Ameen Charitable Fund Trust (383 ITR 517) wherein it was held that amendment to Section 11(6) was prospective in nature and operative w.e.f. 01/04/2015 only. Aggrieved the revenue is in further appeal before us.
We find that this issue is squarely covered in assessee’s favor by the recent decision of Hon’ble Supreme Court titled as CIT Vs. Rajasthan & Gujarati Charitable Foundation, Poona [89 Taxmann.com 127] which has been rendered after considering the decisions of CIT v. Institute of Banking Personnel Selection (IBPS) [2003] 131 Taxman 386 (Born.) & Lissie Medical Institutions v. CIT [2012] [348 ITR 344 (Ker.)]. The Hon’ble court has concluded the matter in the following manner:-
2. After hearing learned counsel for the parties, we are of the opinion that the aforesaid view taken by the Bombay High Court correctly states the principles of law and them is no need to interfere with the same.
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