Little Scholars Academy vs ACIT, Central Circle, Moradabad

Parties Involved

Facts Summary

For the assessment year 2018-19, the assessee society filed its return of income declaring NIL income, claiming depreciation on assets amounting to Rs. 56,58,946/-. The Assessing Officer disallowed the depreciation claim by invoking provisions of section 11(6) of the Income Tax Act, 1961. The assessee appealed against this decision, arguing that the disallowance was erroneous as the depreciation on assets acquired during A.Y. 2018-19 was not claimed as application of income for charitable purposes. The assessee also argued that the provisions of section 11(6) were prospective and not retrospective.…

Legal Issues

• 1. Whether the Commissioner of Income Tax (Appeals) erred in disallowing the entire depreciation claimed by the assessee?
• 2. Whether the Commissioner of Income Tax (Appeals) erred in appreciating the provisions of section 11(6) of the Act?
• 3. Whether the Commissioner of Income Tax (Appeals) erred in not appreciating the decision of the Hon'ble Apex Court in the case of CIT vs Rajasthan and Gujrati Charitable Foundation?

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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