The Dirctor of Income tax(Exemption), Ahmedabad V. Sardar Patel Institure Of Public Administration, Ahmedabad

ITA 1322/AHD/2011

• Counselvise Citation: 132220514 RSA 2011
• Duration Of Justice: 10 month(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-03-2012
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Next Hearing Date: 01-03-2012
• Assessment Year: 2008-2009
• Appeal Filed On: 03-05-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: D C PATWARI
• Assessee Lawyers: M G PATEL
• Keywords: Depreciation; Charitable institution; Capital expenditure

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD BENCH C AHMEDABAD BEFORE SHRI, A.K.GARODIA, ACCOUNTANT MEMBER AND SHRI KUL BHARAT, JUDICIAL MEMBER ITA NO.1322/AHD/2011 ASSESSMENT YEAR :2008-09 DIRECTOR OF INCOME-TAX (EXEMPTION), AHMEDABAD V/S . SARDAR PATEL INSTITUTE OF PUBLIC ADMINISTRATION OPP. ISRO, SATELLITE, AHMEDABAD PAN NO.AAAJS2448C (APPELLANT) .. (RESPONDENT) / BY APPELLANT SHRI D.C. PATWARI, CIT-DR / BY RESPONDENT SHRI M.G. PATEL, AR / DATE OF HEARING 01-03-2012 / DATE OF PRONOUNCEMENT 07- 03-2012 O R D E R PER KUL BHARAT, JUDICIAL MEMBER:- PRESENT APPEAL HAS BEEN PREFERRED BY THE REVENUE A GAINST THE ORDER DATED 28-02-2011 PASSED BY THE LD. COMMISSIONER OF INCOME-TAX (APPEALS)- XXI, AHMEDABAD FOR ASSESSMENT YEAR 2008-09. 2. THE FACTS IN BRIEF RESULTING INTO FILING OF THE PRESENT APPEAL ARE STATED AS UNDER:- THE ASSESSEE IS A CHARITABLE INSTITUTE THE RETURN OF INCOME WAS FILED ON 03-09-2008 DECLARING TOTAL INCOME AT RS. NIL. THE C ASE WAS TAKEN UP AS SCRUTINY AND NOTICE U/S. 143(2) WAS ISSUED. DURING THE COURSE OF ASSESSMENT ITA NO.1322/AHD/2011 A.Y. 2008-09 DIRECTOR OF INCOME-TAX (EXEMP) ABD V. SARDAR PATEL INSTI TUTE OF PUBLIC ADMN. PAGE 2 PROCEEDINGS, THE ASSESSING OFFICER OBSERVED THAT TH E ASSESSEE HAD CLAIMED THE DEPRECIATION OF RS.1,57,12,754/-. THE ASSESSEE WAS ASKED TO SHOW-CAUSE CONVEYED BY THE CLAIM OF DEPRECIATION SHOULD NOT BE ALLOWED IN VIEW OF DECISION OF HONBLE SUPREME COURT IN THE CASE OF ESCORTS LTD. V. UNION OF INDIA (1993) 199 ITR 43 (SC) AS THE CAPITAL EXPENDITURE FOR ACQUIRING THE ASSET HAS ALREADY BEEN ALLOWED AS AN EXPENDITURE. THE ASS ESSEE VIDE ITS REPLY DATED 08-12-2010 MADE THE FOLLOWING SUBMISSIONS:- FIRST AND FOREMOST, CONTRARY TO YOUR CLAIM MADE IN YOUR ABOVE COMMUNICATION, THE CASE OF ESCORTS LTD. V. UNION OF INDIA (1993) 199 ITR 43 IS NOT APPLICABLE AT ALL TO INSTANT CASE OF SPIPA BEFORE YOU AS SPIPA IS A CHARITABLE INSTITUTION AND IN THE CASE C ITED BY YOU, THE CLAIM OF DEPRECIATION PERTAINS TO SOME OTHER SECTION OF T HE ACT WHEN 100% (OR MORE) DEPRECIATION HAS ALREADY BEEN PROVIDED UNDER SECTION 35. ANYWAY NOT THAT YOU HAVE RAISED THIS ISSUE, WE SEEK TO DRAW YOUR ATTENTION TO THE FACT THAT THE ISSUE RAISED BY YOU HAS ALREADY BEEN APPROPRIATELY DEALT WITH IN FAVOUR OF ASSESSEE IN C ASES OF 1. EIGHTH INCOME-TAD OFFICER V. TRUSTEES OF MARATHI MISSION [BOMBAY] [1982] 001 ITD 0539 2. COMMISSIONER OF INCOME-TAX V. SOCIETY OF THE SIS TERS OF ST. ANNE [KARNATAKA HIGH COURT] [1984] 146 ITR 0028 3. COMMISSIONER OF INCOME-TAX V. RAIPUR PALLOTTINE SOCIETY [MADHYA PRADESH HIGH COURT] [1989] 180 ITR 0579 4. COMMISSIONER OF INCOME-TAX V. SHETH MANILAL RACH HODDAS VISHRAM BHAVAN TRUST [GUJARAT HIGH COURT] [1992] 198 ITR 49 8 5. DIT (EXEMPTION) V. FRAMJEE CAWASJEE INSTITUTE [B OMBAY HIGH COURT] [1993] 109 CTR 463 6. COMMISSIONER OF INCOME-TAX V. INSTITUTE OF BANKI NG [BOMBAY HIGH COURT] [2003] 264 ITR 0110 BY NONE OTHER THAN JUSTICE S.H. KAPADIA WHO IS CHIE F JUSTICE OF INDIA THE CONTENTION OF THE ASSESSEE WAS NOT ACCEPTED BY THE ASSESSING OFFICER APPLYING THE DECISION OF THE HONBLE SUPREME COURT IN THE CASE OF ESCORTS LTD. (SUPRA). THUS CLAIM OF DEPRECIATION OF RS.1,57,12,7 54/- WAS DISALLOWED. THE ASSESSEE FEELING AGGRIEVED BY THE ORDER OF AO PREFE RRED APPEAL BEFORE LD. CIT(A). THE LD. CIT(A) AFTER CONSIDERING THE SUBMIS SION MADE BY THE AR AND THE CASE LAWS AS RELIED UPON BY HIM ALLOWED THE APP EAL HOLDING THAT ACTION OF ITA NO.1322/AHD/2011 A.Y. 2008-09 DIRECTOR OF INCOME-TAX (EXEMP) ABD V. SARDAR PATEL INSTI TUTE OF PUBLIC ADMN. PAGE 3 THE AO IN TREATING THE DEPRECIATION AT DISALLOWABLE APPEARS TO BE QUITE UNJUSTIFIED AND REJECTED THE AO'S STAND. 3. BEFORE US THE REVENUE FEELING AGGRIEVED BY THE O RDER OF LD. CIT(A) PREFERRED THE PRESENT APPEAL ON THE ONLY FOLLOWING GROUNDS:- 1. LEARNED ADDL. CIT HAS GRAVELY ERRED IN LAW AND ON FACTS IN DENYING THE CLAIM OF DEPRECIATION OF RS.1,57,12,754/-. 4. BEFORE US LD. CIT-DR HAS SUPPORTED THE ASSESSMEN T ORDER AND MADE SUBMISSION THAT THE VIEW OF THE ASSESSING OFFICER W AS CORRECT. ON THE CONTRARY, THE LD. AR FOR THE ASSESSEE ARGUED THAT T HE JUDGMENT OF HONBLE SUPREME COURT IN THE CASE OF ESCORTS LTD. (SUPRA) IS NOT APPLICABLE IN THE PRESENT CASE. THE AR FURTHER ARGUED THAT IN THE IDE NTICAL FACTS AND CIRCUMSTANCES OF HONBLE PUNJAB AND HARYANA HIGH CO URT HAS DISTINGUISHED THE JUDGMENT OF THE HONBLE SUPREME COURT IN FAVOUR OF THE ASSESSEE. THE LD. AR HAS RELIED UPON THE FOLLOWING CASE LAWS:- I) CIT V. SHETH MANILAL RANCHHODDAS VISHRAM BHAVAN TRUST 198 ITR 590 (GUJ) II) CIT V. INSTITUTE OF BANKING PERSONNEL SELECTIO N 264 ITR 110 (BOM) III) CIT V. SOCIETY OF THE SISTERS OF ST. ANNE 146 ITR 28 (KER) IV) CIT V. RAIPUR PALLOTTINE SOCIETY 180 ITR 579 ( MP) V) CIT V. MARKET COMMITTEE, PIPLI 330 ITR 16 (P&H) VI) CIT V. TINY TOTS EDUCATION SOCIETY 330 ITR 21 (P&H) WE HAVE CONSIDERED FACTS AND CIRCUMSTANCES OF THE C ASE AND SUBMISSIONS MADE BY THE RESPECTIVE REPRESENTATIVES OF THE PARTI ES. THE ASSESSING OFFICER HAS DISALLOWED THE CLAIM FOLLOWING THE JUDGMENT PAS SED BY THE HONBLE SUPREME COURT IN THE CASE OF ESCORTS LTD. (SUPRA). WE FIND THE HONBLE HIGH COURT PUNJAB AND HARYANA HAS DISTINGUISHED THE JUDG MENT OF THE HONBLE SUPREME COURT IN THE CASE OF CIT V. TINY TOTS EDUCATION SOCIETY 330 ITR 21 (P&H). IN VIEW OF THE FACT THAT THE ISSUE HAS ALREA DY BEEN SETTLED BY THE HOBLE HIGH COURT OF PUNJAB & HARYANA RESPECTFULLY FOLLOWI NG THE RATIO LAID THEREIN WE ITA NO.1322/AHD/2011 A.Y. 2008-09 DIRECTOR OF INCOME-TAX (EXEMP) ABD V. SARDAR PATEL INSTI TUTE OF PUBLIC ADMN. PAGE 4 FIND NO INFIRMITY INTO THE IMPUGNED ORDER OF THE LD . CIT(A). THEREFORE, THE PRESENT APPEAL STANDS DISMISSED. WE FIND NO INFIRMI TY IN THE ORDER OF THE LD. CIT(A). IN VIEW OF THE ABOVE, THE APPEAL OF THE REV ENUE IS DISMISSED. 5. IN THE RESULT, APPEAL OF REVENUE IS DISMISSED. ORDER PRONOUNCED IN OPEN COURT ON 07/03 /2012 SD/- SD/- (A.K.GARODIA) (KUL BHARAT) (ACCOUNTANT MEMBER) (JUDICIAL MEMBER) AHMEDABAD, *DKP -07/03/2012 ()* + ,- ,- ,- ,- ../ ../ ../ ../ 0/ 0/ 0/ 0/ / COPY OF ORDER FORWARDED TO:- 1. / APPELLANT 2. / RESPONDENT 3. *.2 , ,3 / CONCERNED CIT 4. , ,3- / CIT (A) 5. /67 ...2, , .2 , ()* / DR, ITAT, AHMEDABAD 6. 7:; <= / GUARD FILE. BY ORDER/ ,- , /TRUE COPY/ >/ ( ? , .2 , ()* +