Income Tax Officer(Exemptions) Ward-1 , Mysore V. M/s Sadvidya educational Institution , Mysore

ITA 1561/BANG/2018

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 1311 (ITAT-BANGALORE)
• Duration Of Justice: 3 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-09-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Assessment Year: 2014-2015
• Appeal Filed On: 11-05-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Depreciation; Opportunity of being heard; Reasonable cause

Judgement Text

ITA.1561/BANG/2018 PAGE - 1 IN THE INCOME TAX APPELLATE TRIBUNAL BENGALURU BENCH 'C', BENGALURU BEFORE SHRI. JASON P. BOAZ, ACCOUNTANT MEMBER AND SHRI. LALIET KUMAR, JUDICIAL MEMBER I.T.A NO.1561/BANG/2018 (ASSESSMENT YEAR : 2014-15) INCOME-TAX OFFICER (EXEMPTIONS), WARD 1, MYSURU .. APPELLANT V. M/S. SADVIDYA EDUCATIONAL INSTITUTION, NO.7, NARAYAN SASTRY ROAD, DEVRAJ MOHALLA, MYSURU 570024 .. RESPONDENT PAN : AABAS6788H ASSESSEE BY : SHRI. RAVI SHANKAR, ADVOCATE REVENUE BY : DR. P. V. PRADEEP KUMAR, ADDL. CIT HEARD ON : 05.09.2018 PRONOUNCED ON : 07.09.2018 O R D E R PER LALIET KUMAR, JUDICIAL MEMBER : THE PRESENT APPEAL IS FILED BY THE REVENUE AGAINST THE ORDER OF THE CIT (A), MYSURU, DT.30.11.2017, FOR THE ASSE SSMENT YEAR 2014-15, ON THE FOLLOWING GROUNDS : ITA.1561/BANG/2018 PAGE - 2 02. THE LD. DR RELIES UPON THE ORDER PASSED BY THE AO. 03. THE LD. AR SUBMITTED THAT THE ISSUE IS COVERED BY THE JUDGMENT OF THE HONBLE SUPREME COURT IN THE MATTER OF RAJASTHAN AND GUJARATI CHARITABLE FOUNDATION [(2018) 402 ITR 441]. 04. WE HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE RECORD. IN PARA 3 OF THE ORDER THE CIT (A) HAS DECIDED THE ISSUE IN FAVOUR OF THE ASSESSEE, BASED ON THE JUDGMENT OF THE HONBLE SUPREME COURT IN THE MATTER OF RAJASTHAN AND GUJARATI CHARITABLE FOUNDATION (SUPRA), WHICH IS TO THE FOLLOWING EFFECT : ITA.1561/BANG/2018 PAGE - 3 3. THE APPELLANT IS AN ASSOCIATION OF PERSONS REGIS TERED U/S.12A OF THE ACT. FOR THE A.Y.2014-15, THE APPELLANT FILED A RETURN OF INCOME ON 22/09/2014, ADMITTING NIL INCOME. THE ASSESSING OFFICER CONCLUDED THE SCRUTINY ASSESSMENT PROCEEDINGS BY DI SALLOWING THE CLAIM OF DEPRECIATION AMOUNTING TO RS.22,19,377/-. BESIDES, THE ASSESSING OFFICER DID NOT PERMIT THE BENEFIT OF CAR RYING FORWARD THE EXCESS AMOUNT OF APPLICATION PERTAINING TO THE EARL IER YEARS AMOUNTING TO RS.1,00,73,439/- AND ALSO DID NOT PERM IT THE BENEFIT OF CARRYING FORWARD THE UNABSORBED APPLICATION OF T HE CURRENT YEAR. THESE ARE THE ONLY TWO ISSUES THAT ARE CONTES TED IN ALL THE FOUR GROUNDS OF THIS APPEAL PREFERRED AGAINST THE I MPUGNED ORDER. WHEN A HEARING WAS POSTED AFFORDING AN OPPORTUNITY OF BEING HEARD TO THE APPELLANT, NONE APPEARED. A LETTER, DT .30/11/2017 WAS RECEIVED FROM THE AUTHORIZED REPRESENTATIVE SHRI S. LAKHSMINARASIMHA, FCA STATING THAT HE WAS UNABLE TO ATTEND THE HEARING, AS HE WAS PREOCCUPIED WITH OTHER PROFESSIO NAL WORK. FOR THIS REASON, AN ADJOURNMENT WAS SOUGHT. THE LETTER OF ADJOURNMENT WAS CONSIDERED AS PER LAW AND IT IS FOUND THAT NO E VIDENCE WITH REGARD TO A REASONABLE CAUSE PREVENTING EITHER THE APPELLANT OR THE AUTHORIZED REPRESENTATIVE WAS FURNISHED. THEREFORE, THE GROUNDS OF APPEAL ARE DECIDED AS PER LAW, ON THE BASIS OF THE MATERIAL AVAILABLE ON RECORD, AS FOLLOWS: THE 2ND GROUND OF APPEAL PERTAINS TO THE APPELLANT'S CLAIM BOTH FOR BRINGING FORWARD THE AMOUNT OF EXCESS OF EXPENDITURE OVER APPLICATION MADE IN THE EARLIER YEARS TO THE CURRENT YEAR FOR SETTING IT OFF AND THE APPELLA NT'S CLAIM FOR THE EXCESS OF EXPENDITURE OF THE CURRENT YEAR TO BE CAR RIED OVER TO THE FUTURE YEARS. THIS ISSUE IS COVERED IN FAVOR OF THE APPELLANT VIDE THE DECISION OF THE HONORABLE JURISDICTIONAL ITAT, BANG ALORE RENDERED IN ITA NO.124/BANG/2014, DT.20/10/2015 IN THE CASE OF KARNATAKA FOOD AND CIVIL SUPPLIES VS. DEPT. OF INCOME-TAX. TH EREFORE, AFTER DUE CONSIDERATION OF THE FACTS OF THE APPELLANT AS PER LAW, RESPECTFULLY FOLLOWING THE DECISION OF THE JURISDIC TIONAL HON. ITAT, BANGALORE, THE 2ND GROUND OF APPEAL IS ALLOWED. THE 3RD GROUND OF APPEAL PREFERRED ON THE APPELLANT'S CLAIM OF DEPREC IATION IS COVERED IN FAVOR OF THE APPELLANT BY THE DECISION O F THE HONORABLE SUPREME COURT OF INDIA RENDERED IN THE CASE OF CIT- III, PUNE VS. RAJASTHAN AND GUJARATI CHARITABLE FOUNDATION POONA IN CIVIL APPEAL NO.7186 OF 2014 AND THEREFORE, RESPECTFULLY FOLLOWING THE DECISION OF THE HONORABLE SUPREME COURT OF INDIA CI TED SUPRA, THE 3RD GROUND OF APPEAL IS ALLOWED. THE 1ST AND THE 4T H GROUNDS OF APPEAL ARE GENERAL IN NATURE AND THEREFORE, ARE NOT SEPARATELY ADJUDICATED. ITA.1561/BANG/2018 PAGE - 4 05. ON EXAMINING THE FACTS, WE FIND THAT ALL THE GR OUNDS OF THE REVENUE ARE COVERED BY THE DECISION RENDERED BY THE HONBLE SUPREME COURT IN RAJASTHAN AND GUJARATI CHARITABLE FOUNDATION (SUPRA). THEREFORE RESPECTFULLY FOLLOWING THE DECI SION WE HEREBY DISMISS THE APPEAL OF THE REVENUE. 06. IN THE RESULT, APPEAL OF THE REVENUE IS DISMISS ED. ORDER PRONOUNCED IN THE OPEN COURT ON 7TH DAY OF SE PTEMBER, 2018. SD/- SD/- (JASON P. BOAZ) (LALIET KUMAR) ACCOUNTANT MEMBER JUDICIAL MEMBE R BENGALURU DATED : 07.09.2018 MCN* COPY TO: 1. THE ASSESSEE 2. THE ASSESSING OFFICER 3. THE COMMISSIONER OF INCOME-TAX 4. COMMISSIONER OF INCOME-TAX(A) 5. DR 6. GF, ITAT, BANGALORE BY ORDER SENIOR PRIVATE SECRETARY, INCOME TAX APPELLATE TRIBUNAL, BANGALORE.