The ADIT.,(Exemption), Ahmedabad V. Ahmedabad Urban Development Authority, Ahmedabad

ITA 2654/AHD/2012

• Counselvise Citation: [2013] 120 COUNSELVISE.COM (IT) 0563 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-02-2013
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 22-01-2013
• Assessment Year: 2008-2009
• Appeal Filed On: 27-11-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RAHUL KUMAR SRDR
• Assessee Lawyers: S N SOPARKAR SRAR
• Keywords: Depreciation; Charitable institution
• Section: 32

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD BENCH A AHMEDABAD BEFORE SHRI, A.K.GARODIA, ACCOUNTANT MEMBER AND SHRI KUL BHARAT, JUDICIAL MEMBER ITA NO.2653-2654/AHD/2012 ASSESSMENT YEARS :2007-08 & 2008-09 ASSTT. DIRECTOR OF INCOME-TAX (EXEMPTION). AHMEDABAD V/S . AHMEDABAD URBAN DEVELOPMENT AUTHORITY, SARDAR VALLABHHHAI SANKUL, USMANPURA, ASHRAM ROAD, AHMEDABAD 280013 [ PAN NO. AAALA 0233B ] / APPELLANT .. / RESPONDENT) /BY ASSESSEE SHRI S.N.SOPARKAR, SR-AR /BY RESPONDENT SHRI RAHUL KUMAR, SR-DR /DATE OF HEARING 22-01-2013 ! /DATE OF PRONOUNCEMENT 28-02-2013 ' ' ' ' / // / O R D E R PER KUL BHARAT, JUDICIAL MEMBER:- THESE TWO APPEALS BY THE REVENUE ARE DIRECTED AGAI NST THE DIFFERENT ORDERS OF COMMISSIONER OF INCOME-TAX (APPEALS)-XXI, AHMEDABAD (CIT(A) FOR SHORT) OF EVEN DATED I.E., ON 18-09-2012 PERTAI NING TO ASSESSMENT YEAR (AY) 2007-08 & 2008-09. FIRST WE TAKE UP REVENUES APPEAL IN ITA NO.2653/AH D/2012 FOR A.Y. 07-08. 2. THE REVENUE HAS RAISED THE FOLLOWING GROUNDS OF APPEAL:- THE LD. CIT(A) HAS ERRED IN LAW AND ON FACTS IN AL LOWING THE APPEAL OF THE ASSESSEE. ITA NO.2653-54/AHD/2012 A.Y.S 07- 08 * 08-09 ADIT (EXM) ABD V. AUDA PAGE 2 I) THE LD. COMMISSIONER OF INCOME-TAX (APPEALS) HAS ERRED IN LAW AND ON FACTS IN DELETING THE DISALLOWANCE OF DEPREC IATION OF RS.49,98,000/- MADE BY THE ASSESSING OFFICER. II) THE LD. CIT(A) HAS ERRED IN LAW AND ON FACTS IN ALLOWING DEPRECIATION ON THE ASSETS, THE COST OF WHICH HAS A LREADY BEEN ALLOWED AS A DEDUCTION ON ACCOUNT OF APPLICATION OF INCOME AS THIS WOULD AMOUNT TO DOUBLE DEDUCTION IN VIEW OF TH E DECISION OF THE HONBLE SUPREME COURT IN THE CASE OF ESCORTS LT D., 199 ITR 43. III) WHETHER, ON THE FACTS AND IN THE CIRCUMSTANCES OF THE, DEDUCTION OF DEPRECIATION U/S. 32 WHICH FALLS UNDER THE HEAD PROFIT AND GAINS FROM BUSINESS AND PROFESSION OF THE INCOME T AX ACT, 1961 WOULD BE AVAILABLE TO A CHARITABLE TRUST WHOSE INCO ME IS OTHERWISE NOT ASSESSABLE UNDER THE ABOVE HEAD. 3. ALL THE GROUNDS ARE INTER-CONNECTED THEREFORE AR E BEING DISPOSED OFF TOGETHER. THE ONLY CONTROVERSY IN THIS APPEAL IS WI TH REGARD TO DELETION OF DISALLOWANCE OF DEPRECIATION. LD. SR-DR SHRI RAHUL KUMAR, FOR THE REVENUE ARGUED THAT THE DELETION IS NOT JUSTIFIED. HE RELIE D ON THE DECISION OF HONBLE HIGH COURT OF KERALA IN THE CASE OF LISISIE MEDICAL INSTITUTIONS V. CIT (2012) 24 TAXMAN.COM 9 (KER). HE HAS ALSO MADE A WRITTEN SUBM ISSION IN SUPPORT OF HIS ARGUMENT THAT THE ASSESSEE-TRUST IS NOT ENTITLED FO R DEPRECIATION. ON THE CONTRARY, LD. SR-AR SHRI S.N.SOPARKAR FOR THE ASSES SEE SUBMITTED THAT THIS ISSUE IS SQUARELY COVERED IN FAVOUR OF ASSESSEE BY THE JUDGMENT OF THE HONBLE JURISDICTIONAL HIGH COURT RENDERED IN THE C ASE OF CIT V. SHETH MANILAL RANCHHODDAS VISHRAM BHAVAN TRUST (1992) 198 ITR 598 (GUJ). 4. WE HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE MATERIALS AVAILABLE ON RECORD AND THE CASE LAW CITED BY BOTH THE SIDES. WE FIND THAT THIS ISSUE HAS ALREADY BEEN DECIDED BY THE HONBLE CO-OR DINATE BENCH OF THIS TRIBUNAL IN ITA NO. 2658/AHD/2012 & CO NO. 06/AHD/2012 RENDERED IN THE CASE OF ADIT (EXAM) V. FRIENDS OF WWB INDIA DATED 31-01-2013 AND THE DECISION OF HONBLE JURISDICTIONAL HIGH COURT RENDE RED IN THE CASE OF SHETH MANILAL RANCHHODDAS VISHRAM BHAVAN TRUST (SUPRA) HAS TAKEN A VIEW IN FAVOUR OF THE ASSESSEE-TRUST. MOREOVER, THE HONBLE JURISDICTIONAL HIGH COURT ITA NO.2653-54/AHD/2012 A.Y.S 07- 08 * 08-09 ADIT (EXM) ABD V. AUDA PAGE 3 IN TAX APPEAL NO.439 OF 2012 RENDERED IN THE CASE O F DIRECTOR OF INCOME TAX (EXEMPTION) V. AHMEDABAD SOUTH INDIAN CHARITABLE TRUST DATED 09-08-2012. HAS DISMISSED REVENUES APPEAL. IN VIEW OF THE MATT ER, WE DO NOT FIND ANY INFIRMITY INTO THE ORDER PASSED BY LD. CIT(A). THIS GROUND OF REVENUES APPEAL IS DISMISSED. 5. IN THE RESULT, REVENUES APPEAL IS DISMISSED COMING TO REVENUES APPEAL IN ITA NO.2654/AHD/2012 FOR A.Y. 08-09. 6. SINCE THE GROUNDS RAISED REVENUE ARE IDENTICAL A S IN ITA NO. 2653/AHD/2012 AND WE HAVE ALREADY DISCUSSED THE ISS UES IN PARA-4 OF THIS ORDER, HENCE TAKING A CONSISTENT VIEW IN REVENUES APPEAL IN ITA NO. 2653/AHD/2012 THIS GROUND OF REVENUES APPEAL IS DI SMISSED. 7. IN THE RESULT, REVENUES APPEAL IS DISMISSED. 8. IN COMBINED RESULT, BOTH THE APPEAL OF REVENUE ARE DISMISSED. ORDER PRONOUNCED IN OPEN COURT ON THE DATE MENTIONE D HEREINABOVE AT CAPTION PAGE. SDD/- SD/- (A.K.GARODIA) (KUL BHARAT) (ACCOUNTANT MEMBER) (JUDICIAL MEMBER) AHMEDABAD, *DKP #$%-28/02/2013 ,-. / ' ' ' ' 001 001 001 001 21 21 21 21 / COPY OF ORDER FORWARDED TO:- 1. / APPELLANT 2. / RESPONDENT 3. $.$04 5 / CONCERNED CIT 4. 5- / CIT (A) 5. 1 89 0004, 04!, ,-. / DR, ITAT, AHMEDABAD 6. 9<= >? / GUARD FILE. BY ORDER/ ' , /TRUE COPY/ @/, $ 04!, ITA NO.2653-54/AHD/2012 A.Y.S 07- 08 * 08-09 ADIT (EXM) ABD V. AUDA PAGE 4 ,-. / STRENGTHEN PREPARATION & DELIVERY O F ORDERS IN THE ITAT 1) DATE OF TAKING DICTATION 27/02 2) DIRECT DICTATION BY MEMBER STRAIGHT ON COMPUTER/LAPTOP/DRAGON DICTATE NO 3) DATE OF TYPING & DRAFT ORDER PLACE BEFORE MEMBER 27/02 4) DATE OF CORRECTION 27/02 5) DATE OF FURTHER CORRECTION 6) DATE OF INITIAL SIGN BY MEMBERS 27/02 7) ORDER UPLOADED ON 8) ORIGINAL DICTATION PAD-PART HAS BEEN ENCLOSED IN THE FILE YES 9) FINAL ORDER AND 2 ND COPY SEND TO BENCH CLERK ON 28/02