ITO, Coimbatore V. Kovai Medical Centre Research and Educational Trust, Coimbatore

ITA 2098/CHNY/2014

• Counselvise Citation: [2018] 126 COUNSELVISE.COM (IT) 5024 (ITAT-CHENNAI)
• Duration Of Justice: 3 year(s) 4 month(s) 30 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-01-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: D
• Next Hearing Date: 01-08-2017
• Assessment Year: 2010-2011
• Appeal Filed On: 11-08-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: MRS RU GEORGE
• Keywords: Depreciation; Charitable institution

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL D BENCH, CHENNAI ... , , $ BEFORE SHRI N.R.S. GANESAN, JUDICIAL MEMBER AND SHRI S. JAYARAMAN, ACCOUNTANT MEMBER ./ I.T.A. NO. 2098/MDS/2014 / ASSESSMENT YEAR : 2010-11 INCOME TAX OFFICER, COMPANY WARD I, 1 ST FLOOR, 63, RACE COURSE, COIMBATORE 641 018. VS. M/S. KOVAI MEDICAL CENTRE RESEARCH AND EDUCATIONAL TRUST, KMCH CAMPUS, AVINASHI ROAD, COIMBATORE 641 014. [PAN: AAATK 2825P] ( / APPELLANT) ( / RESPONDENT) & ' / APPELLANT BY : NONE *+& ' / RESPONDENT BY : MRS. RUBY GEORGE, CIT ' /DATE OF HEARING : 26.12.2017 ' /DATE OF PRONOUNCEMENT : 10.01.2018 /O R D E R PER S. JAYARAMAN, ACCOUNTANT MEMBER: THE REVENUE FILED THIS APPEAL AGAINST THE ORDER O F COMMISSIONER OF INCOME TAX (APPEALS)-I, COIMBATORE IN ITA NO. 33 /2013-14 DATED 01.05.2014 FOR ASSESSMENT YEAR 2010-11. :-2-: ITA NO. 2098/MDS/2014 2. M/S. KOVAI MEDICAL CENTRE RESEARCH AND EDUCATION AL TRUST, THE ASSESSEE, IS A CHARITABLE INSTITUTION. WHILE MAKIN G THE ASSESSMENT FOR ASSESSMENT YEAR 2010-11, THE AO REJECTED THE ASSESS EES CLAIM OF DEPRECIATION FOR COMPUTING THE INCOME U/S. 11(1) ON THE GROUND THAT THE COST INCURRED BY THE ASSESSEE AS ADDITION TO FIXED ASSET S HAS ALREADY BEEN TREATED AS AN APPLICATION OF FUNDS FOR CHARITABLE PURPOSES AND THEREFORE, A FURTHER CLAIM OF DEPRECIATION WOULD AMOUNT TO DOUBLE DEDUCT ION, WHICH IS NOT PERMISSIBLE IN LAW. AGGRIEVED, THE ASSESSEE FILED THIS APPEAL AND THE CIT(A) ALLOWED THE APPEAL. 3. AGAINST THE ORDER OF THE CIT(A), THE REVENUE FIL ED THIS APPEAL, PRIMARILY SEEKING CONFIRMATION OF DISALLOWANCE OF DEPRECIATIO N MADE BY THE AO. 4. WE HEARD THE RIVAL SUBMISSIONS. THE APEX COURT IN RAJASTHAN AND GUJARATI CHARITABLE FOUNDATION POONA IN CIVIL NO. 7 186 OF 2014 DATED 13.12.2017 FOUND THAT EVEN THOUGH THE COST OF ASSET WAS ALLOWED AS APPLICATION OF INCOME IN THE YEAR OF ACQUISITION OF ASSET, THE CHARITABLE INSTITUTION IS STILL ENTITLED FOR DEPRECIATION. IN VIEW OF THIS JUDGEMENT OF APEX COURT, THIS TRIBUNAL IS UNABLE TO UPHOLD THE CONTEN TION OF THE LD. DR. BY RESPECTFULLY FOLLOWING THE JUDGEMENT OF APEX COURT IN RAJASTHAN AND GUJARATI CHARITABLE FOUNDATION POONA, SUPRA, AND FOR THE REA SONING STATED THEREIN, THE ORDERS OF BOTH THE AUTHORITIES BELOW ARE SET ASIDE AND THE ASSESSING OFFICER IS :-3-: ITA NO. 2098/MDS/2014 DIRECTED TO ALLOW THE DEPRECIATION AS CLAIMED BY TH E ASSESSEE AND THE REVENUES APPEAL IS DISMISSED. 5. IN THE RESULT, THE REVENUES APPEAL IS DISMISSED . ORDER PRONOUNCED ON WEDNESDAY, THE 10 TH DAY OF JANUARY, 2018 AT CHENNAI. SD/- ( . . . ) (N.R.S. GANESAN) ! ' /JUDICIAL MEMBER SD/- ( ) (S. JAYARAMAN) ' /ACCOUNTANT MEMBER /CHENNAI, 1 /DATED: 10 TH JANUARY, 2018 JPV ' *23 43 /COPY TO: 1. &/ APPELLANT 2. *+& /RESPONDENT 3. 5 ( )/CIT(A) 4. 5 /CIT 5. 3 * /DR 6. 7 /GF