The DCITGNR Circle, Gandhinagar V. Adharshila Education & Charitable Trust, Gandhinagar

ITA 1557/AHD/2010

• Counselvise Citation: [2010] 136 COUNSELVISE.COM (IT) 0004 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 month(s) 18 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-08-2010
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Next Hearing Date: 20-08-2010
• Assessment Year: 2007-2008
• Appeal Filed On: 12-05-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SHELLEY JINDAL
• Assessee Lawyers: B T THAKKER
• Keywords: Depreciation; Charitable institution

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD BENCH C BEFORE SHRI G.D.AGRAWAL, VICE-PRESIDENT (AZ) AND SHRI MUKUL KR. SHRAWAT, JUDICIAL MEMBER DATE OF HEARING : 20/08/2010 DRAFTED ON: 24/ 08/2010 ITA NO.1557/AHD/2010 ASSESSMENT YEAR : 2007-08 DCIT GANDHINAGAR CIRCLE GANDHINAGAR VS. ADHARSHILA EDUCATION & CHARITABLE TRUST NATIONAL HIGHWAY NO.8 VILLAGE VALAD DIST.GANDHINAGAR PAN/GIR NO. : AABTA 2713 R (APPELLANT) .. (RESPONDENT) APPELLANT BY : SHRI SHELLEY JINDAL, CIT-DR RESPONDENT BY: SHRI B.T. THAKKER O R D E R PER SHRI MUKUL KR. SHRAWAT, JUDICIAL MEMBER : THIS IS AN APPEAL AT THE BEHEST OF THE REVENUE W HICH HAS EMANATED FROM THE ORDER OF LEARNED CIT(APPEALS)-GANDHINAGAR DATED 10/02/2010 AND THE SOLITARY SUBSTANTIAL GROUND READS AS UNDER: - (1) THE LEARNED CIT(A) HAS ERRED IN LAW AND ON FAC TS IN ALLOWING THE DEPRECIATION @ 30% INSTEAD OF 15% ON S CHOOL BUSES USED FOR ITS STUDENTS. 2. THE ISSUE IN BRIEF AS EMERGED FROM THE CORRESPO NDING ASSESSMENT ORDER PASSED U/S.143(3) OF THE I.T. ACT, 1961 DATE D 07/09/2009 WERE THAT THE ASSESSEE IN THE STATUS OF AOP-TRUST IS RUNNING AN EDUCATIONAL ITA NO. 1557/AHD/2010 DCIT VS. ADHARSHILA EDUCATION & CHARITABLE TRUST ASST.YEAR - 2007-08 - 2 - INSTITUTION. IT WAS NOTICED BY THE ASSESSING OFFIC ER THAT ON SCHOOL BUS, THE ASSESSEE HAS CLAIMED DEPRECIATION @ 30-%. AS PER ASSESSING OFFICER, THE RATE OF DEPRECIATION ALLOWABLE WAS 15% AS PER IT RULES, 1962. ACCORDINGLY, THE EXCESSIVE CLAIM OF DEPRECI ATION WAS DISALLOWED. 3. THE FIRST APPELLATE AUTHORITY HAS CONSIDERED THE FACTS OF THE CASE AND THEREUPON HE HAS FOUND THAT AS PER INCOME TAX R ULES, 1962 DEPRECIATION AT HIGHER RATE IS ALLOWABLE IN RESPECT OF THE COMMERCIAL VEHICLES USED FOR HIRE PURPOSES AS PRESCRIBED IN AP PENDIX-I, ITEM NO.III(2)(II) OF THE I.T.RULES. FACTS HAVE ALSO RE VEALED THAT THE SCHOOL USED TO CHARGE FROM THE STUDENTS THE TRANSPORTATION CHARGES, HENCE, THE VEHICLE IN QUESTION USED FOR THE PURPOSES OF THE AC TIVITY OF THE TRUST. THE LEARNED CIT(APPEALS) HAS DECIDED THIS ISSUE IN FAVO UR OF THE ASSESSEE VIDE PARAGRAPH NOS.3.3 & 3.4.; REPRODUCED BELOW:- 3.3. AFTER DUE CONSIDERATION, I FIND THE APPELLANT S STAND TO BE CORRECT. CLEARLY THE APPELLANT IS USING THESE BUSE S FOR HIRING AND SHOWING ITS INCOME ACCORDINGLY. THE ASSESSING OFFI CER HAS NOT DISPUTED THE FCT THAT THE ASSESSEE HAS RECOVERED THESE AMOUN TS FROM STUDENTS, ALTHOUGH IT CAN BE CALLED TO BE IN THE BUSINESS OF HIRING. THERE DOES NOT APPEAR TO BE ANY SPECIFIC CATEGORY OF SCHOOL BUSES AS SUCH IN THE RULES. IN THE FACTS OF THE CASE THE VEHICLES IN Q UESTION SHALL HAVE TO BE COVERED BY THE CLASSIFICATION MOTOR BUSES TA X IS USED IN A BUSINESS OF RUNNING THEM ON HIRE (PART A III (3) ( III). 3.4. THEREFORE, ASSESSING OFFICER IS DIRECTED TO AL LOW DEPRECIATION @ 30%. 4. NOW BEFORE US, A COPY OF THE APPENDIX-I DESCRIBI NG THE ADMISSIBLE RATES OF DEPRECIATION ARE PLACED. ON CAREFUL PERUS AL OF THE SAME, WE ARE OF THE VIEW THAT ONCE THE VEHICLE IN QUESTION IS ME ANT FOR HIRING PURPOSE ITA NO. 1557/AHD/2010 DCIT VS. ADHARSHILA EDUCATION & CHARITABLE TRUST ASST.YEAR - 2007-08 - 3 - FOR TRANSPORTING THE STUDENTS OF THE SCHOOL, THEREF ORE, WE ARE OF THE VIEW THAT THE LEARNED CIT(APPEALS) HAS RIGHTLY ALLOWED T HE CLAIM. REVENUES GROUND IS HEREBY DISMISSED. 5. IN THE RESULT, THE APPEAL OF THE REVENUE IS D ISMISSED. ORDER SIGNED, DATED AND PRONOUNCED IN THE COURT ON 31/ 08 /2010. SD/- SD/- ( G.D.AGRAWAL ) ( MUKUL KR. SHRAWAT ) VICE PRESIDENT (AZ) JUDICIAL ME MBER AHMEDABAD; DATED 31/ 08 /2010 T.C. NAIR, SR. PS COPY OF THE ORDER FORWARDED TO : 1. THE ASSESSEE. 2. THE DEPARTMENT. 3. THE CIT CONCERNED 4. THE LD. CIT(APPEALS)-GANDHINAGAR 5. THE DR, AHMEDABAD BENCH 6. THE GUARD FILE. BY ORDER, //TRUE COPY// (DY./ASSTT.REGISTRAR), ITAT, AHMEDABAD