Datta Sansthan, Belgaum V. Deputy Commissioner of Income Tax Circle-1, Belgaum., Belgaum

ITA 288/PAN/2015

• Counselvise Citation: [2015] 134 COUNSELVISE.COM (IT) 1358 (ITAT-PANAJI)
• Duration Of Justice: 2 month(s) 8 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-09-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2010-2011
• Appeal Filed On: 06-07-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: K M MAHESH
• Keywords: Depreciation; Charitable institution

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PANAJI BENCH, PANAJI BEFORE SHRI N.S. SAINI, HON'BLE ACCOUNTANT MEMBER AND SHRI GEORGE MATHAN, HONBLE JUDICIAL MEMBER ITA NO. 288/PNJ/2015 : (A.Y 2010 - 11) DATTA SANSTHAN AT PANT BALEKUNDRI KSHETRA, TAL. & DIST. BELGAUM PAN : AADTS7406B (APPELLANT) VS. DY. COMMISSIONER OF INCOME TAX, CIRCLE - 1, BELGAUM (RESPONDENT) ASSESSEE BY : PRAMOD Y. VAIDYA, ADV. REVENUE BY : K.M. MAHESH, DR DATE OF HEARING : 14/09/2015 DATE OF PRONOUNCEMENT : 14/09/2015 O R D E R PER GEORGE MATHAN : 1. THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST THE ORDER OF THE CIT(A), BELAGAVI IN ITA NO. 208/BGM/2012 - 13 DT. 1.4.2015 FOR THE 2010 - 11. SHRI PRAMOD Y. VAIDYA, ADVOCATE REPRESENTED ON BEHALF OF THE ASSESSEE AND SHRI K.M. MAHESH, LD. DR REPRESENTED ON BEHALF OF THE ASSESSEE. 2. IT WAS SUBMITTED BY THE LD. AR THAT THE ONLY ISSUE IN THE ASSESSEES APPEAL WAS AGAINST THE ACTION OF THE LD. CIT(A) IN CONFIRMING THE DISALLOWANCE OF THE ASSESSEES CLAIM OF DEPRECIATION. IT WAS THE SUBMISSION THAT THE ASSESSEE IS A CHARITABLE TRUST. IT WAS THE SUBMISSION THAT ON THE BASIS OF THE DECISION OF THE HON'BLE SUPREME COURT IN THE CASE OF ESCORTS LTD. 2 ITA NO. 288/PNJ/2015 (A.Y 2010 - 11) REPORTED IN 199 ITR 43 (SC) THE ASSESSEES CLAIM OF DEPRECIATION WAS DISALLOWED BY THE AO. IT WAS THE SUBMISSION THAT THE LD. CIT(A) HAD ALSO FOLLOWED THE DECISION OF THE HON'BLE SUPREME COURT IN THE CASE OF ESCORTS LTD. REFERRED TO SUPRA . IT WAS THE SUBMISSION THAT THE LOWER AUTHORITIES FAILED TO APPRECIATE THAT THE DECISION OF THE HON'BLE SUPREME COURT IN THE CASE OF ESCORTS LTD. WAS DISTINGUISHABLE FROM THE FACTS OF THE ASSESSEES CASE INSOFAR AS THE DECISION OF THE HON'BLE SUPREME COURT IN THE CASE OF ESCORTS LTD. WAS NOT A CASE OF A CHARITABLE TRUST. THE LD. AR FURTHER DREW OUR ATTENTION TO THE DECISION OF THE CO - ORDINATE BENCH OF THIS TRIBUNAL IN THE CASE OF KUMURESHWAR PRASAD NILAY IN ITA NO. 242/PAN/2014 DT. 14.11.2014 WHEREIN THE CO - ORDINATE BENCH OF THIS TRIBUNAL HAD FOLLOWING THE DECISION OF THE JURISDICTIO N HIGH COURT OF BOMBAY IN THE CASE OF INSTITUTE OF BANKING REPORTED IN 264 ITR 110 AS ALSO THE DECISION OF THE HON'BLE PUNJAB & HARYANA HIGH COURT IN THE CASE OF MARKET COMMITTEE, PIPLI REPORTED IN 330 ITR 016 HAD HELD THAT THE CHARITABLE TRUST WAS ELIGIBL E FOR CLAIM OF DEPRECIATION. HE ALSO PLACED RELIANCE ON THE DECISION OF THE CO - ORDINATE BENCH OF THIS TRIBUNAL IN THE CASE OF KITTUR RANI CHANNAMMA MEMORIAL COMMITTEE & KRCRS SCHOOL FOR GIRLS, KITTUR IN ITA NOS. 269 & 417/PNJ/2013 DT. 12.6.2015 WHEREIN THE CLAIM OF DEPRECIATION HAS BEEN HELD IN FAVOUR OF THE ASSESSEE. 3. IN REPLY, THE LD. DR VEHEMENTLY SUPPORTED THE ORDER OF THE LD. CIT(A) AND THE AO. 4. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS. A PERUSAL OF THE DECISION OF THE HON 'BLE PUNJAB & HARYANA HIGH COURT IN THE CASE OF MARKET COMMITTEE, PIPLI REFERRED TO SUPRA CLEARLY SHOWS THAT THE HON'BLE PUNJAB & HARYANA HIGH COURT HAS CONSIDERED THE DECISION OF THE HON'BLE SUPREME COURT IN THE CASE OF ESCORTS LTD. AND HAS DISTINGUISHED THE SAME AND HAS HELD THAT THE ASSESSEE 3 ITA NO. 288/PNJ/2015 (A.Y 2010 - 11) IS ENTITLED TO THE CLAIM OF DEPRECIATION. A PERUSAL OF THE DECISION OF THE HON'BLE BOMBAY HIGH COURT IN THE CASE OF INSTITUTE OF BANKING REFERRED TO SUPRA CLEARLY SHOWS THAT THE HON'BLE BOMBAY HIGH COURT HAS CATEGOR ICALLY HELD THAT THE ASSESSEE CHARITABLE TRUST IS ENTITLED TO CLAIM OF DEPRECIATION, SO ALSO, THE DECISION IN THE CASE OF THE SOCIETY OF THE SISTERS OF ST. ANNE BY THE HON'BLE KARNATAKA HIGH COURT REPORTED IN 146 ITR 28 AS ALSO THE DECISION OF THE HON'BLE MADHYA PRADESH HIGH COURT IN THE CASE OF DEVI SAKUNTALA THARAL CHARITABLE FOUNDATION REPORTED IN 46 TAXMANN.COM 241 (M.P) AND THE DECISION OF THE HON'BLE RAJASTHAN HIGH COURT IN THE CASE OF KRISHI UPAJ MANDI SAMITI REPORTED IN 55 TAXMANN.COM 63 (RAJ) . AS IT IS NOTICED THAT THE ISSUE OF CLAIM OF DEPRECIATION IN THE CASE OF A CHARITABLE TRUST IS SQUARELY COVERED BY THE DECISION OF THE JURISDICTION HIGH COURT OF BOMBAY AS ALSO THE DECISIONS OF THE VARIOUS HON'BLE HIGH COURT S REFERRED TO SUPRA , WE ARE OF THE V IEW THAT THE ASSESSEE IS ENTITLED TO CLAIM OF DEPRECIATION. IN THE CIRCUMSTANCES, THE AO IS DIRECTED TO ALLOW THE DEPRECIATION AS CLAIMED BY THE ASSESSEE. 5. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 14/09/2015. S D / - (N.S. SAINI) ACCOUNTANT MEMBER S D / - ( GEORGE MATHAN ) JUDICIAL MEMBER PLACE : PANAJI / GOA DATED : 14/09/ 201 5 *SSL* 4 ITA NO. 288/PNJ/2015 (A.Y 2010 - 11) COPY TO : (1) APPELLANT (2) RESPONDENT (3) CIT(A) CONCERNED (4) CIT CONCERNED (5) D.R (6) GUARD FILE TRUE COPY, BY ORDER , 5 ITA NO. 288/PNJ/2015 (A.Y 2010 - 11) DATE INITIAL ORIGINAL DICTATION PAD & DRAFT ORDER ARE ENCLOSED IN THE FILE 1. DRAFT DICTATED ON 14/09/2015 SR.PS 2. DRAFT PLACED BEFORE AUTHOR 1 5 /09/2015 SR.PS 3. DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER 1 5 /09/2015 JM/AM 4. DRAFT DISCUSSED/APPROVED BY SECOND MEMBER 1 5 /09/2015 JM/AM 5. APPROVED DRAFT COMES TO THE SR.PS/PS 1 5 /09/2015 SR.PS 6. DATE OF PRONOUNCEMENT 14/09/2015 SR.PS 7. FILE SENT TO THE BENCH CLERK 1 5 /09/2015 SR.PS 8. DATE ON WHICH FILE GOES TO THE HEAD CLERK 9. DATE OF DISPATCH OF ORDER