ACIT.CIRCLE-1 ,, RANCHI vs. MOHINI DEVI CHARITABLE TRUST, VARANASI

Though the Revenue has taken four grounds of appeal, but the only issue involved in the appeal is whether assessee is entitled for depreciation amounting to Rs.1,32,68,744/-.

With the assistance of ld. Representatives, we have gone through the record carefully. A perusal of the record would suggest that the assessee is a Charitable Institution duly registered under section 12AA of the Income Tax Act. It has claimed depreciation, which was disallowed to it by the ld. Assessing Officer on the ground that the assessee has already applied the expenditure incurred for purchase of capital asset on their acquisition, therefore, it is not entitled for depreciation again. However, this year is prior to the amendment made in section 11(1) of the Income Tax Act. The ld. CIT(Appeals) has rightly followed the decision of the Hon’ble Supreme Court in the case of Rajasthan & Gujarati Charitable Foundation Poona, reported in (2018) 300 CTR 1 (SC)/ 89 taxmann.com 127. After considering the reasoned finding of the ld. CIT(Appeals), we do not find any error in it.