Income-tax Officer, V. Shri Gajanan maharaj Shikshan Prasarak Mandal, Pune

ITA 1442/PUN/2014

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 1829 (ITAT-PUNE)
• Duration Of Justice: 1 year(s) 10 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-05-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2009-2010
• Appeal Filed On: 14-07-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ANIL CHAWARE
• Assessee Lawyers: RAMESH N RAO
• Keywords: Capital asset; Depreciation; Charitable institution
• Section: 12

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH A , PUNE , . . , BEFORE MS. SUSHMA CHOWLA, JM AND SHRI R.K. PANDA, AM . / ITA NO. 1 442 /PN/201 4 / ASSESSMENT YEAR : 20 0 9 - 1 0 THE INCOME TAX OFFICER, WARD 10(1), PUNE . / APPELLANT VS. SHR EE GAJANAN MAHARAJ SHIKSHAN PRASARAK MANDAL, DHANKAWADI, PUNE 411043 . / RESPONDENT PAN : AAETS9474J / APPELLANT BY : SHRI ANIL CHAWARE / RESPONDENT BY : SHRI RAMESH N. RAO / / / DATE OF HEARING : 17 . 0 5 .201 6 DATE OF PRONOUNCEMENT: 17 . 0 5 .201 6 / ORDER PER SUS HMA CHOWLA, J M : TH IS APPEAL FILED BY THE REVENUE IS AGAINST THE ORDER OF CIT (A) - V , PUNE , DATED 30 . 04 .20 1 4 RELATING TO ASSESSMENT YEAR 20 0 9 - 1 0 AGAINST ORDER PASSED UNDER SECTION 1 4 3(3) OF THE INCOME - TAX ACT , 1961 (IN SHORT THE ACT) . 2 . THE REVENUE HAS R AISED THE FOLLOWING GROUNDS OF APPEAL: - 1. WHETHER ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, THE LD.CIT(A) WAS JUSTIFIED IN ALLOWING THE CLAIM OF DEPRECIATION OF RS.51,06,789/ - WHEN THE ASSETS ON WHICH DEPRECIATION WAS CLAIMED WERE ACQUIRED OUT OF APPLICATION OF INCOME AND ALLOWING OF DEPRECIATION WOULD AMOUNT TO DOUBLE DEDUCTION? 3 . THE ISSUE RAISED IN THE PRESENT APPEAL FILED BY THE REVENUE IS AGAINST THE ORDER OF CIT(A) IN ALLOWING THE CLAIM OF DEPRECIATION OF RS.51,06,789/ - ON ITA NO. 1 442 /PN/20 1 4 SHREE GAJANAN MAHARAJ SHIKSHAN PRASARAK MANDAL 2 THE ASSETS, COS T OF WHICH WAS ALLOWED AS DEDUCTION ON ACCOUNT OF APPLICATION OF INCOME. 4. THE LEARNED AUTHORIZED REPRESENTATIVE FOR THE ASSESSEE POINTED OUT THAT THE ISSUE RAISED IN THE PRESENT APPEAL IS SQUARELY COVERED BY THE ORDER S OF HONBLE BOMBAY HIGH COURT IN DI RECTOR OF INCOME TAX (EXEMPTION) VS. FRAMJEE CAWASJEE INSTITUTE (1993) 109 CTR 463 (BOM) AND THE HONBLE HIGH COURT OF PUNJAB & HARYANA IN CIT VS. MARKET COMMITTEE, PIPLI (2011) 330 ITR 16 (P&H) . 5. THE LEARNED DEPARTMENTAL REPRESENTATIVE FOR THE REVENUE PLACED RELIANCE ON THE ORDER OF ASSESSING OFFICER. 6. BRIEFLY, IN THE FACTS OF THE PRESENT CASE, THE ASSESSEE TRUST WAS REGISTERED AS CHARITABLE TRUST UNDER SECTION 12 A OF THE ACT. THE ASSESSEE FOR THE YEAR UNDER CONSIDERATION HAD CLAIMED DEDUCTION ON AC COUNT OF DEPRECIATION OF RS.76,97,220/ - ON MOVABLE AND IMMOVABLE ASSETS. THE ASSESSING OFFICER DISALLOWED THE CLAIM OF ASSESSEE SINCE THE ASSESSEE TRUST HAD CLAIMED THE EXPENDITURE ON ACQUISITION OF SUCH CAPITAL ASSETS AS APPLICATION OF INCOME. THE ASSES SING OFFICER WAS OF THE VIEW THAT IF DEPRECIATION IS ALLOWED ON SUCH ASSETS, IT WILL AMOUNT TO DOUBLE DEDUCTION . THE CIT(A) HOWEVER, ALLOWED THE CLAIM OF ASSESSEE, IN VIEW OF THE RATIO LAID DOWN BY THE HONBLE BOMBAY HIGH COURT IN DIRECTOR OF INCOME TAX ( EXEMPTION) VS. FRAMJEE CAWASJEE INSTITUTE (SUPRA) . 7. THE REVENUE IS IN APPEAL AGAINST THE ORDER OF CIT(A). 8. WE FIND THAT THE ISSUE IS SQUARELY COVERED IN FAVOUR OF THE ASSESSEE BY THE RATIO LAID DOWN BY THE HONBLE BOMBAY HIGH COURT IN DIRECTOR OF INC OME TAX ITA NO. 1 442 /PN/20 1 4 SHREE GAJANAN MAHARAJ SHIKSHAN PRASARAK MANDAL 3 (EXEMPTION) VS. FRAMJEE CAWASJEE INSTITUTE (SUPRA) AND HONBLE HIGH COURT OF PUNJAB & HARYANA IN CIT VS. MARKET COMMITTEE, PIPLI (SUPRA). THE COURTS HAVE HELD THAT THOUGH THE AMOUNT SPENT ON ACQUISITION OF ASSETS HAD BEEN TREATED AS APPLICATION OF INCOME OF THE TRUST IN THE YEAR IN WHICH THE SAID INCOME WAS SPENT ON ACQUIRING THOSE ASSETS, HOWEVER, DEPRECIATION IN RESPECT OF THOSE ASSETS WAS TO BE ALLOWED WHILE COMPUTING THE INCOME OF TRUST IN SUBSEQUENT YEARS. FOLLOWING THE SAME PARITY OF REASONI NG, WE FIND NO MERIT IN THE GROUNDS OF APPEAL RAISED BY THE REVENUE AND THE SAME ARE DISMISSED. 9 . IN THE RESULT, THE APPEAL OF THE REVENUE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON THIS 17 TH DAY OF MAY , 201 6 . SD/ - SD/ - ( R.K. PANDA ) ( SUSHMA CHOWLA ) / ACCOUNTANT MEMBER / JUDICIAL MEMBER / ACCOUNTANT MEMBER / JUDICIAL MEMBER / PUNE ; DATED : 17 TH MAY , 201 6 . GC VSR / COPY OF THE ORDER IS FORWARDED TO : 1. / THE APPELLANT ; 2. / THE RESPONDENT; 3. ( ) / THE CIT (A) - V , PUNE ; 4. / THE CIT - V , PUNE ; 5. , , / DR A , ITAT, PUNE; 6. / GUARD FILE . / BY ORDER , // TRUE COPY // / SR. PRIVATE SECRETARY , / ITAT, PUNE