ITO (E), New Delhi V. Adhishakti Laboratory for Theatre Art Research Public Charitable Trust Education Foundation, New Delhi

ITA 2454/DEL/2016

• Counselvise Citation: [2018] 121 COUNSELVISE.COM (IT) 5864 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-05-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Assessment Year: 2010-2011
• Appeal Filed On: 03-05-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Depreciation; Charitable institution
• Section: 143(3); 154; 11

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCHES : C : NEW DELHI BEFORE SHRI R.S. SYAL, VICE PRESIDENT AND SMT. BEENA A. PILLAI, JUDICIAL MEMBER ITA NO.2454/DEL/2016 ASSESSMENT YEAR : 2010-11 ITO(E), TRUST WARD-1(1), NEW DELHI. VS. ADHISHAKTI LABORATORY FOR THEATRE ART RESEARCH PUBLIC CHARITABLE TRUST EDUCATION FOUNDATION, 1 ST FLOOR, 50/8, TOLSTOY LANE, JANPATH, NEW DELHI. PAN: AAATA0972B (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI R. VENKATRAMAN, CA DEPARTMENT BY : SHRI ARUN KUMAR YADAV, SR. DR DATE OF HEARING : 29.05.2018 DATE OF PRONOUNCEMENT : 30.05.2018 ORDER PER R.S. SYAL, VP: THIS APPEAL FILED BY THE REVENUE ARISES OUT OF THE ORDER PASSED BY THE CIT(A) ON 23.02.2016 IN RELATION TO THE ASSESSMENT YEAR 2010-11. ITA NO.2454/DEL/2016 2 2. BRIEFLY STATED, THE FACTS OF THE CASE ARE TH AT THE ASSESSEE IS A CHARITABLE SOCIETY WHICH CLAIMED EXEMPTION U/S 11 OF THE ACT. THE ASSESSMENT WAS FINALIZED ACCORDINGLY DETERMINING NIL INCOME. THER EAFTER, PROCEEDINGS WERE TAKEN UP U/S 154 BY THE ASSESSING OFFICER, IN WHICH IT WAS HELD THAT THE DEFICIT ACCUMULATED FROM ASSESSMENT YEAR 2004-05 TO 2008-09 AMOUNTING TO RS.51,77,934/-, SET OFF BY THE ASSESSEE FROM THE TA XABLE INCOME FOR THE YEAR WAS NOT ELIGIBLE FOR BROUGHT FORWARD. HE ALSO DISA LLOWED THE ASSESSEES CLAIM OF DEPRECIATION ON ASSETS AMOUNTING TO RS.9,13,783/ -. THE LD. CIT(A) DECIDED BOTH THESE ISSUES IN THE ASSESSEES FAVOUR AGAINST WHICH THE REVENUE HAS COME UP IN APPEAL BEFORE US. 3. WE HAVE HEARD BOTH THE SIDES AND PERUSED THE REL EVANT MATERIAL ON RECORD. THE FIRST ISSUE IS AGAINST NOT ALLOWING SET OFF BY THE AO OF THE BROUGHT FORWARD LOSS OF RS.51,77,934/- PERTAINING TO THE EA RLIER ASSESSMENT YEARS. IT IS OBSERVED FROM THE IMPUGNED ORDER THAT THE SAID LOSS OF RS.51.77 LAC WAS DETERMINED BY MEANS OF THE ORDERS PASSED U/S 143(3) OF THE ACT IN EARLIER YEARS. UNDER SUCH SITUATION, WE SEE NO INFIRMITY I N THE IMPUGNED ORDER IN ALLOWING SET OFF OF THE BROUGHT FORWARD LOSS. ITA NO.2454/DEL/2016 3 4. IN SO FAR AS THE DISALLOWANCE OF DEPRECIATION IS CONCERNED, WE FIND THAT THIS ISSUE IS NO MORE RES INTEGRA IN VIEW OF THE JUDGMENT OF THE HON'BLE SUPREME COURT IN CIT VS. RAJASTHAN AND GUJARATI CHARITABLE FOUNDATIO N (2018) 402 ITR 441 (SC) IN WHICH THE ISSUE HAS BEEN DECIDED IN THE ASSESSEES FAVOUR IN ALLOWING DEPRECIATION BY HOLDI NG THAT THE AMENDMENT CARRIED OUT BY WAY OF SECTION 11(6), NOT PERMITTING THE CLAIM OF DEPRECIATION IN SUCH CIRCUMSTANCES, IS APPLICABLE PROSPECTIVELY FROM 01.04.2015. SINCE THE ASSESSMENT YEAR UNDER CONSIDERATION IS A PERIOD PRIOR TO THE AMENDMENT, WE HOLD THAT THE LD. CIT(A) WAS JUSTIFIED IN ACCEPT ING THE ASSESSEES CLAIM ON THIS COUNT. 5. IN THE RESULT, THE APPEAL FILED BY THE REV ENUE IS DISMISSED. THE ORDER PRONOUNCED IN THE OPEN COURT ON 30 TH MAY, 2018. SD/- SD/- [BEENA A. PILLAI] [R.S. SYAL] JUDICIAL MEMBER VICE PRESIDENT DATED, 30 TH MAY, 2018. DK ITA NO.2454/DEL/2016 4 COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT (A) 5. DR, ITAT AR, ITAT, NEW DELHI.