Assistant Commissioner of Income Tax, Circle-1(1), Panaji., Panaji V. M/s Society of Pilar., Goa

ITA 389/PAN/2014

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 93464 (ITAT-PANAJI)
• Duration Of Justice: 7 month(s) 12 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-06-2015
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Next Hearing Date: 18-06-2015
• Assessment Year: 2011-2012
• Appeal Filed On: 05-11-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MEHBOOB ALI KHAN LD
• Keywords: Depreciation; Charitable institution; Capital expenditure
• Section: 12A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PANAJI BENCH, PANAJI BEFORE SHRI GEORGE MATHAN, HONBLE JUDICIAL MEMBER AND SHRI N.K. BILLAIYA, HON'BLE ACCOUNTANT MEMBER ITA NO. 388 /PNJ/20 14 : (A.Y 2011 - 12 ) ACIT, CIRCLE - 1(1), PANAJI, GOA. ( APPELLANT) VS. M/S. PILAR SEMINARY SOCIETY PILAR, GOA 403 203. PAN : AAATP1509R (RESPONDENT) ITA NO. 389/PNJ/2014 : (A.Y 2011 - 12) ACIT, CIRCLE - 1(1), PANAJI, GOA. ( APPELLANT) VS. M/S. SOCIETY OF PILAR PILAR, GOA 403 203. PAN : AAATS6589G (RESPONDENT) ASSESSEE S BY : BRIJESH SHAH, CA REVENUE BY : MEHBOOB ALI KHAN, LD. DR DATE OF HEARING : 18/06/2015 DATE OF PRONOUNCEMENT : 18/06/2015 O R D E R PER GEORGE MATHAN : 1. ITA NO. 388/PNJ/2014 IS AN APPEAL FILED BY THE REVENUE IN THE CASE OF M/S. PILAR SEMINARY SOCIETY AGAINST THE ORDER OF CIT(A), PANAJI IN ITA NO. 223 /PNJ/ 13 - 14 DT. 5.8. 20 1 4 FOR THE A.Y 2011 - 12 . ITA NO. 389/PNJ/2014 IS AN APPEAL FILED BY THE REVENUE IN THE CASE OF M/S. SOCIETY OF PILAR AGAINST THE ORDER OF CIT(A), PANAJI IN ITA NO . 224/PNJ/13 - 14 DT. 5.8.2014 FOR THE A.Y 2011 - 12. AS THE ISSUES IN BOTH THE APPEALS ARE IDENTICAL, THEY ARE DISPOSED OFF BY THIS COMMON ORDER. SHRI BRIJESH SHAH, CA REPRESENTED ON BEHALF OF THE ASSESSEE S AND SHRI MEHBOOB ALI KHAN, LD. DR REPRESENTED ON BE HALF OF THE REVENUE. 2 ITA NOS. 388 & 389/PNJ/2014 (A.Y : 2011 - 12) 2. IT WAS THE SUBMISSION BY THE LD. DR THAT THE ISSUE WAS AGAINST THE ACTION OF CIT(A) IN ALLOWING DEPRECIATION TO THE ASSESSEE, ESPECIALLY WHEN THE ASSESSEE WAS A CHARITABLE TRUST REGISTERED U/S 12A OF THE ACT. THE LD. DR VEHEMENT LY SUPPORTED THE ORDER OF THE AO. 3. I N REPLY, THE LD. AR VEHEMENTLY SUPPORTED THE ORDER OF THE LD. CIT(A). IT WAS THE SUBMISSION OF THE LD. AR THAT IN VIEW OF THE DECISION OF THE HON'BLE BOMBAY HIGH COURT IN THE CASE OF INSTITUTE OF BANKING PERSONNEL REPORTED IN 264 ITR 110 AND THE DECISION OF THE HON'BLE BOMBAY HIGH COURT IN THE CASE OF FRAMJEE CAWASJEE INSTITUTE REPORTED IN 109 CTR 463, THE ORDER OF THE LD. CIT(A) WAS LIABLE TO BE CONFI RMED INSOFAR AS DEPRECIATION HAS TO BE TAKEN INTO ACCOUNT IN COMPUTING THE INCOME FROM DEPRECIABLE ASSETS WHEN, IN FACT, THE FULL CAPITAL EXPENDITURE HAS BEEN ALLOWED IN THE YEAR OF ACQUISITION OF THE ASSETS. 4. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS. AS IT IS NOTICED THAT IN THE PRESENT CASE THE REVENUES APPEALS ARE CLEARLY COVERED BY THE DECISION OF THE HON'BLE BOMBAY HIGH COURT IN THE CASE OF INSTITUTE OF BANKING PERSONNEL AS ALSO THE DECISION IN THE CASE OF FRAMJEE CAWASJEE INSTITUTE REFERRED TO SUPRA, RESPECTFULLY FOLLOWING THE DECISIONS OF THE HON'BLE BOMBAY HIGH COURT, THE ORDER OF THE LD. CIT(A) STANDS CONFIRMED. 5. IN THE RESULT, THE APPEALS OF THE REVENUE ARE DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 18/06/2015. S D / - (N.K. BILLAIYA) ACCOUNTANT MEMBER S D / - ( GEORGE MATHAN ) JUDICIAL MEMBER PLACE : PANAJI / GOA DATED : 1 8 /06/ 201 5 *SSL* 3 ITA NOS. 388 & 389/PNJ/2014 (A.Y : 2011 - 12) COPY TO : (1) APPELLANT (2) RESPONDENT S (I) M/S. PILAR SEMINARY SOCIETY & (II) M/S. SOCIETY OF PILAR (3) CIT(A) CONCERNED (4) CIT CONCERNED (5) D.R (6) GUARD FILE TRUE COPY, BY ORDER , 4 ITA NOS. 388 & 389/PNJ/2014 (A.Y : 2011 - 12) DATE INITIAL ORIGINAL DICTATION PAD & DRAFT ORDER ARE ENCLOSED IN THE FILE 1. DRAFT DICTATED ON 18/06/2015 SR.PS 2. DRAFT PLACED BEFORE AUTHOR 1 9 /06/2015 SR.PS 3. DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER 1 9 /06/2015 JM/AM 4. DRAFT DISCUSSED/APPROVED BY SECOND MEMBER 1 9 /06/2015 JM/AM 5. APPROVED DRAFT COMES TO THE SR.PS/PS 1 9 /06/2015 SR.PS 6. DATE OF PRONOUNCEMENT 18/06/2015 SR.PS 7. FILE SENT TO THE BENCH CLERK 1 9 /06/2015 SR.PS 8. DATE ON WHICH FILE GOES TO THE HEAD CLERK 9. DATE OF DISPATCH OF ORDER