1 Section 11 – (i) Depreciation allowed on fixed assets cost of which was allowed as application of income; (ii) Assessee allowed the benefit of carry forward of deficit for future set-off.
The assessee being a charitable organisation registered u/s. 12A was engaged in carrying on activities of charitable nature. The dispute involved in the appeal was on two issues - firstly, the Revenue was aggrieved by the decision of the CIT(A) in directing the AO to allow the benefit of depreciation and secondly, the action of the CIT(A) in allowing the assessee the benefit of carry forward of the deficit of Rs. 3.5 crore for future set-off.