R.P. Tolani, Judicial Member - This is a set of cross appeals for A.Y. 2006-07 and assessee's appeal for A.Y. 2007-08. All these appeals are heard together and being disposed of by a common order for the sake of convenience. Respective grounds are as under:

ITA no. 3602/Del/09 (Assessee's appeal for A.Y. 2006-07):

"1.1 That on the law, facts and in the circumstances of the case, the learned CIT (Appeals) has erred in sustaining the addition of Rs. 1.50 crores u/s 68 of Income-tax Act, 1961 being the corpus donation received by the appellant trust from S. Jagjit Singh in utter disregard to the facts and evidence of the case on record as reproduced in the impugned order and relying merely on alleged denial of making any donation in form of statement recorded by the Additional Director of Income-tax (Investigation), inter alia, the learned CIT (Appeals) failed to appreciate that without allowing the requested opportunity to the appellant to cross examine the party, the said evidence could not be used as evidence in law.

1.2 Without prejudice, even otherwise, the alleged assertion of the party in the statement denying the fact of making the donation stood vitiated by other evidence on record, the party himself not disputing the donation to the appellant Trust of his own funds and under his own direction.

2. That on the law, facts and in the circumstances of the case, the learned CIT (Appeals) has erred in sustaining the addition of Rs. 25 lacs as corpus donation received by means of account payee cheque from Shri Piyush Jain in utter disregard to the confirmatory letter dated 24-02-2006 forwarding the donation containing details of payment of cheque and details of bank account number and branch as also the appellant's request for summoning the party and the requisite information from his bank account.

3. That on the law, facts and in the circumstances of the case, the learned CIT (Appeals) has erred in treating the development fund charges of Rs. 59,58,384/- recovered during the year and directly credited to the development fund in the balance sheet as corpus of the trust. The receipts were embedded as source with the obligation to apply them to the development activities for the welfare of the students.

4. That on the law, facts and in the circumstances of the case, the learned CIT (Appeals) has erred in confirming the denial of depreciation in computing the real income for the purpose of determination of application of income on the ground that investment in fixed assets had duly been claimed as application of income and acceptance of the appellant's claim amounted to granting of double deduction.

5. That the order of CIT (Appeals) is wrong being in violation of the principles of natural justice and contrary to facts and law of the case.

6. That the appellant craves leave to add, alter or amend or forego any grounds of appeal at the time of hearing.

ITA no. 3856/Del/09 (Revenue's appeal for A.Y. 2006-07):

"1. Whether on the facts & in the circumstances of the case, the ld. CIT(A) was correct in holding that there was no violation of the provisions of Section 13(1)(c) read with Section 13(2) of the I.T. Act, 1961 particularly when a sum of Rs. 8,17,15,200/- was in fact given as loan or advance by the assessee to M/s Ansal Properties and Infrastructure Ltd. and as such it cannot be treated as the sum paid for purchase of plots from M/s Ansal Properties and Infrastructure Ltd. at Gurgaon.

2. Whether on the facts & in the circumstances of the case, the 'Agreement to Sell' entered into by Charanjiv Charitable Trust with Ansal Properties and Infrastructure Ltd. in March 2004 can be considered as real or genuine for effecting the transfer of plots at Gurgaon particularly when such agreement was, a colourable device, made simply for facilitating transfer of funds by the assessee to M/s Ansal Properties and Infrastructure Ltd. in order to escape the rigors contained in Section 13(1)(c) read with section 13(2) of the Income-tax Act, 1961.

3. Whe