Advaidha Sabha, Trichy V. ACIT Circle 1(2), Trichy

ITA 1972/CHNY/2018

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 6570 (ITAT-CHENNAI)
• Duration Of Justice: 10 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-04-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Assessment Year: 2011-2012
• Appeal Filed On: 19-06-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: DR M SRINIVASA RAO
• Assessee Lawyers: N QUADIR HOSEYN DR L NATARAJAN
• Keywords: Depreciation; Set aside
• Section: 11

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL D BENCH, CHENNAI . . . , ! ' # , % #& BEFORE SHRI N.R.S. GANESAN, JUDICIAL MEMBER AND SHRI INTURI RAMA RAO, ACCOUNTANT MEMBER ./ ITA NO.1971/CHNY/2018 ) *) / ASSESSMENT YEAR : 2010-11 M/S NATIONAL COLLEGE COUNCIL, POST BOX NO.369, CHATRAM BUS STAND, TEPPAKULAM, TIRUCHIRAPALLI 620 002. PAN : AAATT 6266 H V. THE ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE 1(2), TIRUCHIRAPALLI. (,-/ APPELLANT) (./,-/ RESPONDENT) ./ ITA NO.1972/CHNY/2018 ) *) / ASSESSMENT YEAR : 2011-12 M/S ADVAIDHA SABHA, NO.35, PATHAYEE KIDANGU LANE, CHINNAKADAI STREET, TIRUCHIRAPALLI 620 002. PAN : AAATA 0742 M V. THE ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE 1(2), TIRUCHIRAPALLI. (,-/ APPELLANT) (./,-/ RESPONDENT) ,- 0 1 / APPELLANTS BY : SHRI N. QUADIR HOSEYN, ADVOCATE DR. L. NATARAJAN, CA ./,- 0 1 / RESPONDENT BY : DR. M. SRINIVASA RAO, CIT 2 0 3% / DATE OF HEARING : 22.04.2019 45* 0 3% / DATE OF PRONOUNCEMENT : 30.04.2019 2 I.T.A. NOS.1971 & 1972/CHNY/18 / O R D E R PER N.R.S. GANESAN, JUDICIAL MEMBER : BOTH THE APPEALS OF TWO DIFFERENT ASSESSEES ARE D IRECTED AGAINST THE COMMON ORDER PASSED BY THE COMMISSIONER OF INCOME TAX (APPEALS) -1, TIRUCHIRAPALLI, DATED 18.05.2018 AND PERTAIN TO ASSESSMENT YEARS 2010-11 AND 2011-12 RESPECTIVELY. THEREFORE, WE HEARD BOTH THE APPEALS TOGETHER AND DISPOSING TH E SAME BY THIS COMMON ORDER. 2. SHRI N. QUADIR HOSEYN, THE LD.COUNSEL APPEARED F OR BOTH THE ASSESSEES, SUBMITTED THAT THE ASSESSEES CLAIMED DEP RECIATION IN RESPECT OF THE ASSET USED FOR THE CHARITABLE ACTIVI TIES. ACCORDING TO THE LD. COUNSEL, THE ASSESSING OFFICER DISALLOWED T HE CLAIM OF THE ASSESSEES ON THE GROUND THAT THE ASSESSEES ALREADY CLAIMED EXEMPTION IN RESPECT OF INVESTMENT UNDER SECTION 11 OF THE INCOME- TAX ACT, 1961 (IN SHORT 'THE ACT'). THEREFORE, IT AMOUNTS TO DOUBLE DEDUCTION. ACCORDING TO THE LD. COUNSEL, THE CIT(A PPEALS) CONFIRMED THE ORDER OF THE ASSESSING OFFICER ON THE GROUND THAT SECTION 11(6) OF THE ACT, WHICH WAS INTRODUCED WITH EFFECT FROM 01.04.2015, IS NOT APPLICABLE RETROSPECTIVELY . AC CORDING TO THE LD. COUNSEL, THE APEX COURT IN THE CASE OF CIT V. RAJAS THAN AND 3 I.T.A. NOS.1971 & 1972/CHNY/18 GUJARATI CHARITABLE FOUNDATION POONA (2018) 402 ITR 441EXAMINED THIS ISSUE AND FOUND THAT THE ASSESSEE IS ELIGIBLE TO CLAIM DEPRECIATION AND THE ASSESSING OFFICER HAS TO COMPU TE THE INCOME ON COMMERCIAL PRINCIPLES. IN VIEW OF THIS JUDGMENT OF APEX COURT, ACCORDING TO THE LD. COUNSEL, THE PARLIAMENT AMENDE D SECTION 11 OF THE ACT BY INTRODUCING CLAUSE (6), THEREFORE, THE D EPRECIATION CLAIMED BY THE ASSESSEES CANNOT BE DENIED IN RESPEC T OF THE EARLIER ASSESSMENT YEARS. 3. WE HEARD DR. M. SRINIVASA RAO, THE LD. DEPARTMEN TAL REPRESENTATIVE ALSO. THE APEX COURT IN THE CASE OF RAJASTHAN AND GUJARATI CHARITABLE FOUNDATION POONA (SUPRA) FOUND THAT THE ASSESSEES ARE ELIGIBLE FOR DEPRECIATION IN RESPECT OF THE ASSET FOR WHICH THE COST OF INVESTMENT WAS ALLOWED AS EXEMPTI ON UNDER SECTION 11 OF THE ACT. IN VIEW OF THIS JUDGMENT OF APEX COURT, THIS TRIBUNAL IS OF THE CONSIDERED OPINION THAT BOTH THE ASSESSEES ARE ELIGIBLE FOR DEPRECIATION AS CLAIMED. ACCORDINGLY, THE ORDERS OF THE LOWER AUTHORITIES ARE SET ASIDE IN RESPECT OF THE A SSESSEES / APPELLANTS BEFORE THIS TRIBUNAL AND THE ASSESSING O FFICER IS DIRECTED TO GRANT DEPRECIATION IN RESPECT OF THE CAPITAL ASS ET WHICH WAS USED FOR CHARITABLE ACTIVITIES. 4 I.T.A. NOS.1971 & 1972/CHNY/18 4. IN THE RESULT, BOTH THE APPEALS FILED BY THE ASS ESSEES ARE ALLOWED. ORDER PRONOUNCED IN THE COURT ON 30 TH APRIL, 2019 AT CHENNAI. SD/- SD/- ( ! ' # ) ( . . . ) (INTURI RAMA RAO) (N.R.S. GANESAN) % / ACCOUNTANT MEMBER /JUDICIAL MEMBER /CHENNAI, 7 /DATED, THE 30 TH APRIL, 2019. KRI. 0 .389 :9*3 /COPY TO: 1. ,- /APPELLANT 2. ./,- /RESPONDENT 3. 2 ;3 () /CIT(A)-1, TIRUCHIRAPPALLI 4. CIT (EXEMPTIONS), CHENNAI 5. 9< .3 /DR 6. ) = /GF.