ITO (E) 2-3, MUMBAI V. SADHU VASWANI MISSION BOMBAY, MUMBAI

ITA 357/MUM/2016

• Counselvise Citation: [2017] 128 COUNSELVISE.COM (IT) 0235 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 5 month(s) 12 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-07-2017
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: Not Allotted
• Assessment Year: 2011-2012
• Appeal Filed On: 22-01-2016
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: SUBRAMANIAN
• Assessee Lawyers: T A KHAN
• Keywords: Depreciation; Capital expenditure
• Section: 32; 11

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL 'F' BENCH, MUMBAI BEFORE SHRI P K BANSAL, VICE PRESIDENT AND SHRI SANDEEP GOSAIN, JUDICIAL MEMBER ITA NO.357 /MUM/2016 (ASSESSMENT YEAR: 2011-12) INCOME TAX OFFICER - (E)2 - 3 VS. SADHU VASWANI MISSION BOMBAY ROOM NO. 513, 5TH FLOOR PIRAMAL CHAMBERS LALBAUG, MUMBAI 400012 13/14, GEETANJALI, BEHIND RADIO CLUB, COLABA MUMBAI 400086 PAN AACTS1706P APPELLANT RESPONDENT APPELLANT BY: SHRI T.A. KHAN RESPONDENT BY: SHRI SUBRAMANIAN DATE OF HEARING: 04.07.2017 DATE OF PRONOUNCEMENT: 04.07.2017 O R D E R PER P.K. BANSAL, VICE PRESIDENT THIS APPEAL HAS BEEN FILED BY THE REVENUE AGAINST T HE ORDER OF THE CIT(A)-1, MUMBAI DATED 03.11.2015 FOR A.Y. 2011-12. 2. THE ONLY ISSUE INVOLVED IN THIS APPEAL RELATES TO T HE CLAIM OF DEPRECIATION BY THE ASSESSEE SOCIETY UNDER SECTION 32 OF THE INCOME TAX ACT. 3. THE FACTS WHICH WE NOTED ARE THAT THE ASSESSEE HAS CLAIMED DEPRECIATION OF ` 64,73,265/- IN RESPECT OF THE ASSETS FOR WHICH ASSE SSEE HAS CLAIMED CAPITAL EXPENDITURE AS APPLICATION WHIL E COMPUTING INCOME UNDER THE INCOME TAX ACT. THE AO DID NOT ALLOW THE DEPRECIATION IN VIEW OF THE FACT THAT THE ASSESSEE HAD ALREADY BEEN ALLOWED EXEMPTION UNDER SECTION 11 WHEN THESE ASSETS WERE PURCHASED AND ALL OWING DEPRECIATION WILL TANTAMOUNT TO DOUBLE DEDUCTION. ITA NO. 357/MUM/2016 SADHU VASWANI MISSION BOMBAY PAGE 2 OF 4 4. WHEN THE MATTER WENT BEFORE THE CIT(A), THE CIT(A) ALLOWED THE APPEAL OF THE ASSESSEE AND DIRECTED THE AO TO ALLOW DEDUCTION TO THE ASSESSEE FOR THE SAID DEPRECIATION. 5. WE HEARD THE RIVAL SUBMISSIONS AND GONE THROUGH THE ORDERS OF THE TAX AUTHORITIES BELOW. THIS ISSUE, IN OUR OPINION, IS NO MORE RES INTEGRA IN VIEW OF THE DECISION OF THE HON'BLE JURISDICTIONAL HIGH COURT IN THE CASE OF CIT VS. INSTITUTE OF BANKING AND PERSONNEL SELECTIO N (2003) 264 ITR 110. NOT ONLY THIS, THE HON'BLE BOMBAY HIGH COURT IN THE CASE OF DIT VS. FRAMJEE CAWASJI INSTITUTE (1993) 190 CTR 46 3 (BOM) HAS ALSO TAKEN SIMILAR VIEW. THE HON'BLE DELHI HIGH COURT AL SO IN THE CASE OF DIT VS. VISHWA JAGRITI MISSION 81 DTR (DEL) 195 HAS TAKEN S IMILAR VIEW. RECENTLY THE HON'BLE BOMBAY HIGH COURT, AGAIN IN THE CASE OF DIT VS. SHRI VILE PARLE KELAVANI MANDAL (2015) 58 TAXMANN.COM 288, HAS ON T HE SAME ISSUE HELD AS UNDER:- AS FAR AS QUESTION NO.4 IS CONCERNED, THIS COURT H AS REPEATEDLY HELD THAT THERE IS NOTHING LIKE DOUBLE DEDUCTION. WHEN T HE ASSESSEE HAS ACQUIRED AN ASSET FROM THE INCOME OF THE TRUST AND THEREAFTER THE AMOUNT THAT IS CLAIMED IS THE DEPRECIATION ON THE U SE OF THE ASSETS, SUCH DEPRECIATION CLAIM DOES NOT MEAN DOUBLE DEDUCT ION. THE DEDUCTION EARLIER CLAIMED IS TOWARDS APPLICATION OF FUNDS OF THE TRUST FOR ACQUIRING ASSETS. THE LATTER IS DEPRECIATION AN D IT IS PERMISSIBLE DEDUCTION CONSIDERING THE USE OF THE ASSETS. THIS H AS BEEN CLARIFIED REPEATEDLY BY THIS COURT. IF ANY REFERENCE IS REQUI RED THEN THE CASE OF CIT V. INSTITUTION OF BANKING (IBPS) (2003) 264 ITR 110/131 TAXMAN 386 (BOM) IS ENOUGH. 6. NO CONTRARY DECISION WAS BROUGHT TO OUR KNOWLEDGE. WE, THEREFORE, DO NOT FIND ANY INFIRMITY IN THE ORDER OF THE CIT(A ). 7. IN THE RESULT, APPEAL FILED BY THE REVENUE IS DISMI SSED. ORDER PRONOUNCED IN THE OPEN COURT ON 4 TH JULY, 2017. SD/ - SD/ - (SANDEEP GOSAIN) (P.K. BANSAL) JUDICIAL MEMBER VICE PRESIDENT MUMBAI, DATED: 4 TH JULY, 2017 ITA NO. 357/MUM/2016 SADHU VASWANI MISSION BOMBAY PAGE 3 OF 4 COPY TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT(A) -1, MUMBAI 4. THE CIT - EXEMPTIONS, MUMBAI 5. THE DR, F BENCH, ITAT, MUMBAI BY ORDER //TRUE COPY// ASSISTANT REGISTRAR ITAT, MUMBAI BENCHES, MUMBAI N.P.