Market Committee, Kurukshetra V. ACIT, Kurukshetra

CO 25/CHANDI/2011

• Counselvise Citation: [2011] 122 COUNSELVISE.COM (IT) 5916 (ITAT-CHANDIGARH)
• Duration Of Justice: 1 month(s) 4 day(s)
• Appeal Type: Cross Objection
• Pronouncement Date: 08-04-2011
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2007-2008
• Appeal Filed On: 04-03-2011
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: N K SAINI
• Keywords: Depreciation
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL CHANDIGARH BENCHES A CHANDIGARH BEFORE SHRI D.K.SRIVASTAVA, ACCOUNTANT MEMBER AND MS SUSHMA CHOWLA, JUDICIAL MEMBER ITA NO. 25/CHD/2011 (IN ITA NO. 94/CHD/2011) ASSESSMENT YEAR: 2007-08 MARKET COMMITTEE, VS. THE ACIT, CIRCLE ISMAILABAD KURUKSHETRA ITA NO. 26/CHD/2011 (IN ITA NO. 95/CHD/2011) ASSESSMENT YEAR: 2007-08 MARKET COMMITTEE, VS. THE ACIT, CIRCLE PEHOWA, KURUKSHETRA ITA NO. 27/CHD/2011 (IN ITA NO. 96/CHD/2011) ASSESSMENT YEAR: 2007-08 MARKET COMMITTEE, VS. THE ACIT, CIRCLE THANESAR KURUKSHETRA ITA NO. 28/CHD/2011 (IN ITA NO. 97/CHD/2011) ASSESSMENT YEAR: 2007-08 MARKET COMMITTEE, VS. THE ACIT, CIRCLE SHAHBAD (M) KURUKSHETRA ITA NO. 29/CHD/2011 (IN ITA NO. 98/CHD/2011) ASSESSMENT YEAR: 2007-08 MARKET COMMITTEE, VS. THE ACIT, CIRCLE LADWA KURUKSHETRA 2 & ITA NO. 30/CHD/2011 (IN ITA NO. 93/CHD/2011) ASSESSMENT YEAR: 2007-08 MARKET COMMITTEE, VS. THE ACIT, CIRCLE PIPLI KURUKSHETRA (APPELLANT) (RESPONDENT) APPELLANT BY : NONE RESPONDENT BY: SHRI N.K.SAINI ORDER PER BENCH THE PRESENT CROSS OBJECTIONS RELATING TO DIFFERENT MARKET COMMITTEES HAVE BEEN FILED BY THE ASSESSEE AGAINST THE RESPECTIVE APPEALS FILED BY THE REVENUE RELATING TO ASSESSMENT YEAR 20 07-08 ALL AGAINST ORDER PASSED U/S 143(3) OF THE ACT. ALL THE CROSS OBJE CTIONS OF DIFFERENT ASSESSEES ARE HEARD TOGETHER AND ARE BEING DISPOSED OF BY THIS CONSOLIDATED ORDER FOR THE SAKE OF CONVENIENCE. 2. THE ASSESSEES IN ITS CROSS OBJECTIONS HAS RAISED THE FOLLOWING GROUNDS:- 1. THE DEPRECIATION ALLOWED BY LD. CIT IS CORRECT AND ALREADY ALLOWED BY HON'BLE PUNJAB & HARYANA HIGH COURT, CHANDIGARH IN THE CASE OF CIT, KARNAL V MARK ET COMMITTE, PIPLI, ITA NO. 535 OF 2009 DECIDED ON 5.7.2010. 2. THE HON'BLE BOMBAY HIGH COURT IN CIT VS INSTITUTE O F BANKING PERSONAL SELECTION (IBPS) (2003) 131 TAXMAN 386, DEPRECIATION IS ALLOWED AND FOLLOWED BY VARIOU S 3 ITATS IN THEIR JUDGMENT INCLUDING HON'BLE ITAT, CHD IN ASSESSMENT YEAR 2006-07 DECIDED ON 26.5.2009 IN WHICH DEPRECIATION IS ALLOWED IN THE MARKET COMMITTEES . 3. DESPITE SERVICE OF NOTICE NONE APPEARED ON BEHAL F OF THE ASSESSEE AND AS THE ISSUE IS COVERED BY THE ORDER OF THE TRI BUNAL IN THE CASE OF THE APPEALS FILED BY THE REVENUE, WE PROCEED TO DISPOSE OF THE PRESENT APPEALS AFTER HEARING THE LD. DR FOR THE REVENUE. 4. THE ONLY ISSUE RAISED BY THE ASSESSEE IN THE PRE SENT CROSS OBJECTION IS IN SUPPORT OF THE ORDER OF THE CIT(A) IN GRANTIN G DEPRECIATION ON ASSETS. THE REVENUE HAD FILED APPEALS AGAINST THE ORDER OF THE CIT(A) IN DIRECTING THAT THE ASSESSEE IS ENTITLED TO THE DEPR ECIATION ON ASSETS VALUE OF WHICH HAD BEEN ALLOWED AS A DEDUCTION ON ACCOUNT OF APPLICATION OF INCOME. THE TRIBUNAL FOLLOWING THE EARLIER ORDERS IN THE CASE OF MARKET COMMITTEES AND ALSO THE RATIO LAID DOWN BY THE HON' BLE PUNJAB & HARYANA HIGH COURT IN CIT VS. MARKET COMMITTEE, PIPLI IN I TA NO. 535/CHD/2009 DATE OF DECISION 5.7.2010 HAD HELD THAT THE ASSESSE E IS ENTITLED TO CLAIM OF DEPRECIATION WHICH SHOULD BE REDUCED FROM THE INCOM E FOR DETERMINING THE PERCENTAGE OF FUND WHICH HAVE TO BE APPLIED FOR THE PURPOSE OF TRUST. 5. THE TRIBUNAL FOLLOWING THE ABOVE SAID RATIO HAVE ALLOWED THE CLAIM OF THE ASSESSEE SUBJECT TO THE VERIFICATION EXERCIS ED TO BE CARRIED OUT BY THE ASSESSING OFFICER IN RESPECT OF THE RATE OF DEP RECIATION ALLOWABLE TO THE ASSESSEE FROM YEAR TO YEAR AND THEREAFTER DETER MINING THE WDV AND COMPUTING THE DEPRECIATION FOR THE YEAR UNDER APPEA L. 4 6. IN VIEW OF THE DIRECTION OF THE TRIBUNAL IN ACIT V MARKET COMMITTEE, PIPLI & OTHERS IN ITA NO. 93 TO 98/CHD/ 2011 , THE PRESENT. CROSS OBJECTIONS FILED BY THE ASSESSEE ARE DISMISSE D AS INFRUCTOUS. 15. IN THE RESULT, ALL THE CROSS OBJECTIONS RAISED BY THE ASSESSEE ARE DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON THIS 8 TH DAY OF APRIL, 2011. SD/- SD/- (D.K.SRIVASTAVA) (SUSHMA CHOWLA) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED : 8 TH APRIL, 2011 RKK COPY TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT 4. THE CIT(A) 5. THE DR BY ORDER ASSISTANT REGISTRAR, ITAT, CHANDIGARH