ITAT quashes CIT(E) Order, upholds Nil Income for Mother Theresa Educational Society due to Proper Fund Application and Disallowed Depreciation

The Income Tax Appellate Tribunal (ITAT) quashed an order and upheld nil income for Mother Theresa Educational Society due to proper fund application and disallowed depreciation. The case involved the assessment of the society’s income, where the Assessing Officer (AO) had disallowed depreciation and added it to the society’s income. The society argued that the funds were properly applied for educational purposes and that the depreciation was correctly claimed. The ITAT found that the society had appropriately applied its funds and that the disallowed depreciation should not be added to its income. The tribunal’s decision supports the principle of recognizing legitimate expenses and proper fund application in tax assessments.