ITO, Coimbatore V. M/s. Ellen Charitable Trust, Coimbatore

ITA 1910/CHNY/2013

• Counselvise Citation: [2014] 140 COUNSELVISE.COM (IT) 73654 (ITAT-CHENNAI)
• Duration Of Justice: 3 month(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-02-2014
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 13-02-2014
• Assessment Year: 2010-2011
• Appeal Filed On: 31-10-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: R K V SUNDAR
• Keywords: Depreciation; Charitable institution
• Section: 11

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH, CHENNAI . . . , ! , ' # $ BEFORE DR. O.K. NARAYANAN, VICE PRESIDENT & SHRI VIKAS AWASTHY, JUDICIAL MEMBER ./ I.T.A. NO. 1910/MDS/2013 / ASSESSMENT YEAR : 2010-11 INCOME TAX OFFICER, COMPANY WARD-I, 1 ST FLOOR, 63, RACE COURSE, COIMBATORE-641 018 ( !% /APPELLANT) VS M/S. ELLEN CHARITABLE TRUST, NO.287, DR.RAJENDRA PRASAD ROAD, COIMBATORE-641 012 [PAN: AAATE 0450 G] ( &'!% /RESPONDENT) / APPELLANT BY : SHRI SHAJI P. JACOB, ADDL.CIT / RESPONDENT BY : SHRI R.K.V.SUNDAR , ADVOCATE / DATE OF HEARING : 13-02-2014 /DATE OF PRONOUNCEMENT : 13-02-2014 #( / O R D E R PER VIKAS AWASTHY, JUDICIAL MEMBER: THE APPEAL HAS BEEN FILED BY THE REVENUE AGAINST T HE ORDER OF COMMISSIONER OF INCOME TAX(APPEALS)-I, COIMBATOR E, DATED 21-08-2013 RELEVANT TO THE ASSESSMENT YEAR (AY) 201 0-11. ITA. NO. 1910/MDS/13 2 2. THE ASSESSEE IS A TRUST REGISTERED U/S.12A OF TH E INCOME TAX ACT, 1961 (HEREIN AFTER REFERRED TO AS THE ACT). IN THE INCOME AND EXPENDITURE STATEMENT FOR THE FINANCIAL YEAR ENDING 31-03-2010, THE ASSESSEE-TRUST HAS CLAIMED DEPRECIATION TO THE TUNE OF ` 25,84,318/-. THE ASSESSING OFFICER VIDE ORDER DATE D 31-12-2012, DIS-ALLOWED THE DEPRECIATION. THE ASSESSING OFFICE R FOLLOWED THE JUDGMENT OF THE HONBLE KERALA HIGH COURT IN THE CA SE OF M/S. LISSIE MEDICAL INSTITUTION VS. CIT IN ITA NO.42/2011 DECIDED ON 17-02-2012, WHEREIN IT HAS BEEN HELD THAT DEPRECIATION CLAIMED BY THE TRUST IS OUTSIDE THE PURVIEW OF SECTION 11 OF T HE ACT. 3. AGGRIEVED AGAINST THE ASSESSMENT ORDER DATED 31- 12-2012, THE ASSESSEE PREFERRED AN APPEAL BEFORE THE CIT(APP EALS). THE CIT(APPEALS) FOLLOWED THE ORDER OF THE TRIBUNAL IN THE CASE OF M/S. CMS EDUCATIONAL & CHARITABLE TRUST IN ITA NO.2261/M DS/2012 DECIDED ON 17-04-2013 AND ALLOWED THE APPEAL OF THE ASSESSEE. IN THE CASE OF M/S. CMS EDUCATIONAL & CHARITABLE TRUST (SUPRA), THE TRIBUNAL PLACED RELIANCE ON THE DECISIONS OF TH E HONBLE PUNJAB & HARYANA HIGH COURT IN THE CASE OF CIT VS. TINY TOTS EDUCATION SOCIETY REPORTED AS 330 ITR 21 AND CIT VS. MARKET COMMITTEE, PIPLI REPORTED AS 330 ITR 16, WHEREIN IT HAS BEEN HELD THAT CLAIM OF DEPRECIATION DO NOT RESULT IN DOUBLE DEDUCTION. TH E CIT(APPEALS) ITA. NO. 1910/MDS/13 3 APPLIED THE RATIO LAID DOWN IN THE CASE OF CIT VS. VEGETABLE PRODUCTS LTD., REPORTED AS 88 ITR 192 (SC) AND DECIDED THE ISSUE IN FAVOUR OF THE ASSESSEE. 4. WE FIND THAT IN THE PRESENT APPEAL, ISSUE RAISED IS SQUARELY COVERED BY THE EARLIER ORDER OF THE TRIBUNAL IN THE CASE OF CMS EDUCATIONAL & CHARITABLE TRUST (SUPRA). IN VIEW OF THE ABOVE, THE APPEAL OF THE REVENUE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT AT THE TIME OF H EARING ON THURSDAY, THE 13 TH FEBRUARY, 2014 AT CHENNAI. SD/- SD/- (DR. O.K. NARAYANAN) (VIK AS AWASTHY) VICE PRESIDENT JUDICIAL MEMBER DATED: 13 TH FEBRUARY, 2014 TNMM COPY TO: APPELLANT/RESPONDENT/CIT(A)/CIT/DR