A registered trust is entitled to claim depreciation even though benefit of application of fund had already been granted to it at time of purchase of assets

IT : Where society, running school, had received development fund as part of students fee which was utilised in amenities and welfare of students, same was to be regarded as capital receipt not chargeable to tax
IT : A registered trust is entitled to claim depreciation even though benefit of application of fund had already been granted to it at time of purchase of assets
■■■
[2014] 49 taxmann.com 294 (Delhi - Trib.)
IN THE ITAT DELHI BENCH 'D'
Income-tax Officer (Exemption)
v.
J.D.Tytler School Society*
Bhavnesh Saini, JUDICIAL MEMBER
AND Shamim Yahya, ACCOUNTANT MEMBER
IT Appeal No. 4476 (Delhi) of 2011
[ASSESSMENT YEAR 2008-09]
JANUARY  8, 2014
I. Section 4, read with sections 11 and 12, of the Income-tax Act, 1961 - Income - Chargeable as (Development fund) - Assessment year 2008-09 - Whether where assessee-society engaged in Charitable object of running school, received certain amount as development fund as part of students fee, in view of fact that said amount was utilised for development of amenities and welfare of students, same was to be regarded as capital receipt not chargeable to tax - Held, yes [Para 8] [In favour of assessee]
II. Section 32, read with section 12AA of the Income-tax Act, 1961 - Depreciation - Allowance/rate of (Charitable trust) - Assessment year 2008-09 - Assessee-society claimed depreciation on certain assets - Whether even though benefit of application of fund had already been taken when assets were purchased, in view of order passed in case of CIT v. Tiny Tots Education Society [2011] 330 ITR 21/11 taxmann.com 242 (Punj. & Har.), assessee's claim for depreciation was to be allowed - Held, yes [Para 15] [In favour of assessee]