M.V.A.Trust, CHENNAI V. ITO, CHENNAI

ITA 1024/CHNY/2017

• Counselvise Citation: [2018] 121 COUNSELVISE.COM (IT) 5307 (ITAT-CHENNAI)
• Duration Of Justice: 11 month(s) 20 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-04-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2012-2013
• Appeal Filed On: 26-04-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: M KARUNAKARAN
• Keywords: Depreciation; Charitable institution
• Section: 143(3); 11

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL , A B ENCH, CHENNAI . . . , . , BEFORE SHRI N.R.S. GANESAN, JUDICIAL MEMBER AND SHRI A.MOHAN ALANKAMONY, ACCOUNTANT MEMBER ./ I.T.A.NO.1024/CHNY/2017 ( / ASSESSMENT YEAR: 2012-13) M/S. M.V.A. TRUST, 3/2, SRIRAM NAGAR NORTH STREET, ALWARPET, CHENNAI 600 018. VS THE INCOME TAX OFFICER, (EXEMPTIONS) WARD -1, CHENNAI 34. PAN: AAATM0647F ( /APPELLANT) ( /RESPONDENT) / APPELLANT BY : SHRI M. KARUNAKARAN, ADVOCATE / RESPONDENT BY : SHRI AR.V. SREENIVASAN, JCIT /DATE OF HEARING : 08.02.2018 /DATE OF PRONOUNCEMENT : 16.04.2018 / O R D E R PER A. MOHAN ALANKAMONY, AM:- THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST TH E ORDER PASSED BY THE LEARNED COMMISSIONER OF INCOME TAX (A PPEALS)-17, CHENNAI, DATED 01.03.2017 IN ITA NO.19/2015-16/CIT( A(-17 FOR THE ASSESSMENT YEAR 2012-13 PASSED U/S.250(6) R.W.S . 143(3) OF THE ACT. 2 THE ASSESSEE HAS RAISED SEVERAL GROUNDS IN ITS AP PEAL HOWEVER THE CRUX OF THE ISSUE IS THAT THE LD.CIT(A) HAS ERRED IN 2 ITA NO. 1024/CHNY/2017 CONFIRMING THE ORDER OF THE LD.AO WHO HAD DISALLOWE D THE ASSESSEES CLAIM OF DEPRECIATION ON FIXED ASSETS ON THE GROUND THAT IT WOULD AMOUNT TO DOUBLE DEDUCTION. 3. THE BRIEF FACTS OF THE CASE ARE THAT THE ASSESSE E IS A TRUST REGISTERED U/S.12A(A) OF THE ACT, FILED ITS RETURN OF INCOME FOR THE ASSESSMENT YEAR 2012-13 ON 27.09.2012 DECLARING GRO SS RECEIPTS OF RS.47,83,691/- AND ADMITTING TOTAL INCOME AS NI L AFTER CLAIMING EXEMPTION U/S.11 OF THE ACT. THE CASE WAS SELECTED FOR SCRUTINY AS PER BOARDS GUIDELINES AND NOTICE U/S. 143(2) OF THE ACT WAS ISSUED ON 23.09.2013 AND FINALLY THE ASSESSMENT ORD ER WAS PASSED U/S.143(3) OF THE ACT ON 19.03.2015 WHEREIN THE LD.AO REJECTED THE ASSESSEES CLAIM OF DEPRECIATION ON FI XED ASSETS AMOUNTING TO RS.24,84,684/- BY HOLDING THAT THE ASS ESSEE IS NOT ELIGIBLE TO CLAIM DEPRECIATION ON THE FIXED ASSET, THE COST OF WHICH HAS BEEN CLAIMED AS APPLICATION OF INCOME AND THERE BY ASSESSED THE TAXABLE INCOME OF THE ASSESSEE AT RS.40,66,137/ -. 4. ON APPEAL THE LD.CIT(A) CONFIRMED THE ORDER OF T HE LD.AO BY AGREEING WITH HIS VIEW. 3 ITA NO. 1024/CHNY/2017 5. AT THE OUTSET WE FIND THAT THE ISSUE IS DECIDED IN FAVOUR OF THE ASSESSEE BY THE HONBLE APEX COURT IN THE CASE CIT VS. RAJASTHAN & GUJARATI CHARITABLE FOUNDATION, PUNE RE PORTED IN 89 TAXMANN.COM 127 WHEREIN IT WAS HELD THAT THE ASSESS EE THOUGH CHARITABLE INSTITUTION ELIGIBLE FOR THE BENEFIT OF SECTION 11 OF THE ACT WOULD BE ENTITLED TO AVAIL THE CLAIM OF DEPRECIATIO N FOR ARRIVING AT ITS NET INCOME. THEREFORE FOLLOWING THE RATIO LAID DOWN BY THE HONBLE APEX COURT IN THE CASE CITED SUPRA, WE HERE BY DIRECT THE LD.AO TO ALLOW THE CLAIM OF DEPRECIATION ON THE ELI GIBLE ASSET. IT IS ORDERED ACCORDINGLY. 6. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALL OWED. ORDER PRONOUNCED ON THE 16 TH APRIL, 2018 AT CHENNAI. SD/- SD/- ( . . . ) (N.R.S. GANESAN) /JUDICIAL MEMBER ( . ) (A. MOHAN ALANKAMONY) / ACCOUNTANT MEMBER #$ /CHENNAI, %& /DATED 16 TH APRIL, 2018 RSR & () *) /COPY TO: 1. /APPELLANT 2. /RESPONDENT 3. - ( )/CIT(A) 4. - /CIT 5. )./ 0 /DR 6. /1 /GF