Sri Srinivasa Educational & Charitable Trust Vs DCIT (ITAT Bangalore)
ITAT Bangalore held that once the genuineness of the building construction expenditure is proved, the consequential claim of depreciation on such genuine assets cannot be denied to trust since depreciation was claimed only on actual assets used for charitable purpose.
Facts- The assessee is a charitable trust incorporated under section 25 of the companies Act 1956 corresponding to section 8 of the companies Act 2013.Post search operation, AO completed the assessment vide order dated 24th November 2023, assessing the total income at Rs. 123,94,28,202/- as against the return income of Rs. 9,53,220/- for the AY 2020-21. Likewise, the AO completed the assessment for AY 2021-22 vide order dated 28th November 2023 assessing the total income at Rs. 138,43,73,474/- as against the returned income of Rs. 6,95,140/-.
CIT(A) dismissed the appeal. Being aggrieved, the present appeal is filed.
Conclusion- Held that since the prohibitory orders under section 132(3) were not validly issued and the search year was rightly in F.Y. 2020–21, the computation of limitation must be made from 31.03.2021. Accordingly, the assessments completed in November 2023 are barred by limitation under section 153B of the Act. The assessee, therefore, succeeds on this technical ground.
