DCIT, Ambala V. Chaman Vatika Educational Society, Ambala City

ITA 287/CHANDI/2014

• Counselvise Citation: [2014] 140 COUNSELVISE.COM (IT) 80851 (ITAT-CHANDIGARH)
• Duration Of Justice: 4 month(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-08-2014
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 06-08-2014
• Assessment Year: 2007-2008
• Appeal Filed On: 21-03-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: AMARVEER SINGH
• Keywords: Capital asset; Depreciation
• Section: 11

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL CHANDIGARH BENCHES B CHANDIGARH BEFORE SHRI T.R. SOOD, ACCOUNTANT MEMBER AND MS. SUSHMA CHOWLA, JUDICIAL MEMBER ITA NO. 287/CHD/2014 ASSESSMENT YEAR: 2007-08 THE DCIT VS. M/S CHAMAN VATIKA EDUCATIONAL YAMUNANAGAR SOCIETY, AMBALA CITY PAN NO. AAAAC1868M (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI AMARVEER SINGH RESPONDENT BY : SHRI SUDHIR SEHGAL DATE OF HEARING : 06/08/2014 DATE OF PRONOUNCEMENT : 19/08/2014 ORDER PER T.R.SOOD, A.M. THE APPEAL FILED BY THE REVENUE IS DIRECTED AGAINST THE ORDER DATED 24.01.2014 OF CIT(APPEALS), PANCHKULA. 2. THE GROUNDS RAISED IN THIS APPEAL BY THE REVENUE ARE AS UNDER:- 1. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE T HE LD. CIT(A) HAS ERRED IN DELETING THE ADDITION OF RS. 53,61,543/- MADE BY THE A.O. ON ACCOUNT OF DISALLOW ANCE OF DEPRECIATION ON THE CAPITAL ASSETS, WHEN THE CAP ITAL EXPENDITURE RELATING TO ACQUISITION OF SUCH ASSETS HAD ALREADY BEEN ALLOWED AS APPLICATION OF INCOME FO R THE 2 PURPOSE OF ALLOWING EXEMPTION U/S 11 OF THE INCOME TAX ACT, 1961, AS SUCH FURTHER ALLOWING OF DEPRECIATION ON ASSETS WOULD AMOUNT TO DOUBLE DEDUCTION FOR THE SAM E EXPENDITURE. 2. IT IS PRAYED THAT THE ORDER OF LD. CIT(A) BE SET-AS IDE AND THAT OF ASSESSING OFFICER BE RESTORED. 3. AFTER HEARING BOTH THE PARTIES WE FIND THAT ASSE SSEE HAS CLAIMED DEPRECIATION AMOUNTING TO RS. 53,61,543/- BUT THE S AME WAS DISALLOWED BECAUSE ASSESSEE HAD ALSO CLAIMED THE COST OF ACQU ISITION OF ASSETS TOWARDS APPLICATION OF MONEY. HOWEVER, LD. CIT(A) ALLOWED THE CLAIM BY FOLLOWING THE DECISION OF HON'BLE PUNJAB & HARYANA HIGH COUR T IN THE CASE CIT V MARKET COMMITTEE, PIPLI IN 330 ITR 16. 4. BEFORE US LD. DR STRONGLY SUPPORTED THE ORDER OF ASSESSING OFFICER. 5. ON THE OTHER HAND, THE LD. COUNSEL OF THE ASSESS EE SUBMITTED THAT ISSUE IS SQUARELY COVERED IN FAVOUR OF THE ASSESSEE BY TH E DECISION OF HON'BLE PUNJAB & HARYANA HIGH COURT IN THE CASE OF CIT VS. MARKET COMMITTEE, PIPLI (SUPRA). 6. AFTER CONSIDERING THE RIVAL SUBMISSIONS WE FIND THAT THE HON'BLE JURISDICTIONAL HIGH COURT IN THE CASE OF CIT VS. MA RKET COMMITTEE, PIPLI (SUPRA) HAS HELD AS UNDER:- HELD, DISMISSING THE APPEAL, THAT THE INCOME OF TH E ASSESSEE BEING EXEMPT, THE ASSESSEE WAS ONLY CLAIMI NG THAT DEPRECIATION SHOULD BE REDUCED FROM THE INCOME FOR 3 DETERMINING THE PERCENTAGE OF FUNDS WHICH HAD TO BE APPLIED FOR THE PURPOSES OF THE TRUST. THERE WAS NO DOUBLE DEDUCTION CLAIMED BY THE ASSESSEE. IT COULD NOT BE HELD THAT DOUBLE BENEFIT WAS GIVEN IN ALLOWING THE CLAIM FOR DEPRECIATION FOR COMPUTING INCOME FOR PURPOSES OF S ECTION 11. 7. FOLLOWING THE ABOVE ORDER WE DECIDE THIS ISSUE A GAINST THE REVENUE. 8. IN THE RESULT, THE APPEAL IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON THIS 19/08/20 14 SD/- SD/- (SUSHMA CHOWLA) (T.R.SOOD) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED : 19 TH AUGUST, 2014 RKK COPY TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT 4. THE CIT(A) 5. THE DR