The ACIT, 1(1), V. M/s R K D F Education Society,

ITA 426/IND/2007

• Counselvise Citation: [2009] 115 COUNSELVISE.COM (IT) 1410 (ITAT-INDORE)
• Duration Of Justice: 2 year(s) 4 month(s) 18 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-11-2009
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Next Hearing Date: 20-11-2009
• Assessment Year: 2003-2004
• Appeal Filed On: 09-07-2007
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: K K SINGH
• Assessee Lawyers: H P VERMA
• Keywords: Unexplained cash credit; Depreciation; Search and seizure; Notional interest; Capital receipt; Benefit of exemption; Revised return
• Section: 12A; 12AA; 11

Judgement Text

PAGE 1 OF 12 426/IND/2007 & 439/IND/2007 RKDF EDUCATION SOCIETY, BHOPAL IN THE INCOME TAX APPELLATE TRIBUNAL INDORE BENCH : INDORE BEFORE SHRI JOGINDER SINGH, JUDICIAL MEMBER AND SHRI V.K. GUPTA, ACCOUNTANT MEMBER PAN NO. : AAATR1026R I.T.A.NO.426 & 439/IND/2007 A.Y. : 2003-04 & 2004-05 A.C.I.T., M/S. R.K.D.F.EDUCATION SOCIETY, 1(1), VS 202, GANGA JAMUNA COMPLEX, BHOPAL ZONE I, M.P.NAGAR, BHOPAL. APPELLANT RESPONDENT APPELLANT BY : SHRI K.K.SINGH, CIT DR RESPONDENT BY : SHRI H.P.VERMA AND SHRI ASHISH GOYAL, ADVOCATES DATE OF HEARING : 20/11/2009 O R D E R PER V.K. GUPTA, A.M. THESE APPEALS FILED BY THE REVENUE BELONG TO THE S AME ASSESSEE AND INVOLVE COMMON GROUNDS, HENCE, THESE APPEALS WE RE HEARD TOGETHER AND DISPOSED OF BY THIS CONSOLIDATED ORDER FOR THE SAKE OF CONVENIENCE. 2. WE HAVE HEARD BOTH THE PARTIES AND HAVE ALSO PERUSE D THE MATERIAL AVAILABLE ON RECORD. 3. FIRST, WE SHALL TAKE UP REVENUES APPEAL IN I.T.A.N O. 426/IND/2007 FOR ASSESSMENT YEAR 2003-04. PAGE 2 OF 12 426/IND/2007 & 439/IND/2007 RKDF EDUCATION SOCIETY, BHOPAL 4. THE GENERAL FACTS ARE THAT THE ASSESSEE IS A REGIS TERED SOCIETY, WHICH WAS GRANTED REGISTRATION U/S 12-A ON 2.5.2001 , WITH EFFECT FROM 1.4.2000. HOWEVER, THE SAME WAS CANCELLED VIDE ORDE R DATED 9.3.2006 BY THE LD. CIT(A), BHOPAL, SUBSEQUENT TO DENIAL OF EXE MPTION U/S 10(23- C)(VI), THE ASSESSEE FILED REVISED RETURN, WHEREIN INCOME WAS CLAIMED AS EXEMPT U/S 11/12 OF THE ACT, AS THE SOCIETY WAS HAV ING A VALID REGISTRATION U/S 12AA AT THAT POINT OF TIME. HOWEVER, THE A.O. E XAMINED SUCH REVISED RETURN IN THE BACKGROUND OF THE FACT THAT THE ASSES SEE WAS NOT HAVING EXEMPTION U/S 10(23C)(VI) AND EXEMPTION U/S 11 & 12 WAS ALSO NOT AVAILABLE AT THAT POINT OF TIME AS THE SAME HAD ALS O BEEN CANCELLED SUBSEQUENT TO FILING OF REVISED RETURN. THEREAFTER, THE A.O. EXAMINED THE PAYMENT MADE BY THE SOCIETY TO SHRI ANIS KHAN IN RE GARD TO BEST SERVICES PROVIDED BY ME TO ASSESSEE AND CIVIL CONTRACT GIVEN TO HIM BY THE SOCIETY. THE A.O., AFTER EXAMINING THESE EXPENSES R EFERRED TO THE PROVISIONS OF SECTION 13(3) READ WITH SECTION 13(2) (C) AND HELD THAT SINCE THE PERSON HAD BEEN BENEFITTED IN PERSONAL CAPACITY , HENCE, THE ASSESSEE WAS NOT ENTITLED FOR EXEMPTION U/S 11/12 ON THE EXC ESS PAYMENT OF RS. 31,120/-, THE AMOUNT OF EXTRA PROFIT. THE A.O. ALSO EXAMINED THE TRANSACTIONS OF MONEY GIVEN TO SHRI B.L.KHURANA, WH EREON NO INTEREST HAD BEEN CHARGED, WHICH, IN THE OPINION OF THE A.O. , ATTRACTED THE PROVISIONS OF SECTION 13. HENCE, HE HELD THAT COMPU TATION OF TOTAL INCOME PAGE 3 OF 12 426/IND/2007 & 439/IND/2007 RKDF EDUCATION SOCIETY, BHOPAL OF ASSESSEE HAD TO BE DONE UNDER THE NORMAL PROVISI ONS OF LAW. FURTHER, THE A.O. ALSO EXAMINED THE CREDIT ENTRY OF RS. 10 L AKHS APPEARING IN THE BANK ACCOUNT OF THE SOCIETY, WHICH WAS EXPLAINED BY THE ASSESSEE AS THE DIRECT PAYMENT BY ONE SHRI ROHIT JAIN, WHO HAD BEEN GIVEN AN ADVANCE OF RS. 10 LAKHS BY DR. SUNIL KAPOOR OUT OF HIS PERSONA L FUNDS. THE A.O., ACCORDINGLY, HELD THAT THE PAYMENT OF A SUM OF RS. 10 LAKHS TO DR. KAPOOR WAS A CASE OF UTILIZATION OF FUNDS OF THE SOCIETY B Y HIM FOR PERSONAL BENEFIT. HENCE, FOR THIS REASON ALSO, THE PROVISION S OF SECTION 13(1) WERE ATTRACTED AND, CONSEQUENTLY, THE ASSESSEE WAS NOT A N ELIGIBLE FOR EXEMPTION U/S 11 & 12. THE A.O. FURTHER ADDED A SUM OF RS. 10 LAKHS AS UNEXPLAINED CASH CREDIT. THE A.O. ALSO ADDED A SUM OF RS. 8,25,000/- BEING AMOUNT RECEIVED BY THE SOCIETY ON SALE OF A PART OF THE BUILDING FOR WANT OF PROPER EXPLANATION. SIMILARLY, THE ASSESSEE HAD GIVEN CERTAIN DONATIONS, WHICH WERE ALSO ADDED BACK TO THE INCOME OF THE SOCIETY. THE A.O. ALSO ADDED PRELIMINARY EXPENSES WRITTEN OFF BY THE ASSESSEE. FINALLY, THE A.O. EXAMINED THE VARIOUS LOANS GIVEN BY THE AS SESSEE TO VARIOUS SOCIETIES WITHOUT INTEREST AND FOUND THAT FOUNDERS/ MEMBERS OF THOSE SOCIETIES WERE ALSO OFFICE BEARERS OF THIS SOCIETY, HENCE, HE HELD THAT IT WAS A CASE OF DIVERSION OF FUND WITHOUT INTEREST AN D, THEREFORE, HE, NOT ONLY DISALLOWED THE INTEREST ON BORROWED FUNDS, BUT ALSO ADDED A SUM OF RS. 10,79,259/- AS NOTIONAL INTEREST, WHICH COULD H AVE BEEN EARNED BY THE PAGE 4 OF 12 426/IND/2007 & 439/IND/2007 RKDF EDUCATION SOCIETY, BHOPAL ASSESSEE ON SUCH INTEREST FREE LOANS. THEREAFTER, H E ALSO ADDED THE EXCESS OF INCOME OVER EXPENDITURE, IN ADDITION TO THE SPEC IFIC DISALLOWANCES/ADDITIONS AND COMPUTED THE TOTAL INCO ME OF THE ASSESSEE AT RS. 4,02,89,190/-. AGGRIEVED BY THIS, THE ASSESSEE PREFERRED AN APPEAL BEFORE THE LD. CIT(A), WHO PASSED THE APPELLATE ORD ER ON 25.4.2007, AFTER TAKING INTO CONSIDERATION, THE ORDER OF THE TRIBUNA L DATED 19.1.2007, WHEREIN THE TRIBUNAL HAD RESTORED REGISTRATION U/S 12-A TO THE ASSESSEE, THEREBY ENABLING THE ASSESSEE TO CLAIM EXEMPTION U/ S 11/12 OF THE ACT. THE LD. CIT(A), THEREAFTER, EXAMINED EACH AND EVERY ISSUE AND DELETED ALL THE ADDITIONS/DISALLOWANCES MADE BY THE ASSESSI NG OFFICER. AGGRIEVED BY THIS, THE REVENUE IS IN APPEAL BEFORE US. 5. THE LD. CIT DR, NARRATED THE FACTS AND SUBMITTED TH AT IN VIEW OF THE DECISION OF THE TRIBUNAL IN ASSESSEES OWN C ASE IN I.T.A.NO. 235/IND/2008 AGAINST THE ORDER OF LD. CIT CANCELLIN G REGISTRATION TO THE ASSESSEE U/S 12A, WHEREIN THE TRIBUNAL HAD CONSIDER ED ALMOST ALL THE ISSUES ON MERITS AND THAT DECISION OF THE TRIBUNAL, BEING BINDING AT THE MOMENT, HENCE, HE WAS PREFERRING TO RELY ON THE ORD ER OF A.O. HE, HOWEVER, ARGUED THAT THE TRIBUNAL HAD THOUGH RESTOR ED THE REGISTRATION U/S 12A, BUT THE TRIBUNAL HAD ALSO OBSERVED THAT THE RE VENUE DEPARTMENT WAS FREE TO EXAMINE CLAIMS OF THE ASSESSEE IN THE C OURSE OF ASSESSMENT PROCEEDINGS AS PER LAW AND IN THE PRESENT CASE, THE A.O. HAD NOT GOT THIS PAGE 5 OF 12 426/IND/2007 & 439/IND/2007 RKDF EDUCATION SOCIETY, BHOPAL OPPORTUNITY. WE ARE AFRAID THAT THIS CONTENTION OF THE LD. CIT DR DOES NOT HAVE ANY MERIT, BECAUSE THE A.O. HAS MADE SPECIFIC DISALLOWANCES/ADDITIONS BY APPLYING PROVISIONS OF S ECTION 13 OF THE ACT, WHICH, BY ITSELF, MEANS THAT THE A.O. HAS EXERCISED SUCH AUTHORITY EVEN WITHOUT THE IMPUGNED ORDER OF THE TRIBUNAL IN THE C OURSE OF FRAMING OF THE ASSESSMENT. ACCORDINGLY, THE SAME IS REJECTED. 6. NOW, WE SHALL DEAL WITH THE SPECIFIC GROUNDS RAISED BY THE REVENUE. 7. GROUND NO. 1 READS AS UNDER :- ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, THE LD. CIT(A) HAS ERRED IN DELETING THE ADDITION OF RS. 3,70,48,502/- MADE BY THE ASSESSING OFFICER ON ACCO UNT OF EXCESS OF INCOME OVER EXPENDITURE. 8. GROUND NO. 1 IS DISMISSED, AT THE VERY OUTSET, AS THE IMPUGNED ADDITION HAS BEEN MADE FOR THE REASON THAT THE ASSE SSEE SOCIETY WAS NEITHER ELIGIBLE FOR EXEMPTION U/S 10(23C)(VI) OF T HE ACT NOR HAVING REGISTRATION U/S 12A OF THE ACT, IN VIEW OF THE SUB SEQUENT DECISION OF THE TRIBUNAL WHEREIN REGISTRATION GRANTED TO THE ASSESS EE SOCIETY U/S 12A HAS BEEN RESTORED. 9. GROUND NO. 2 READS AS UNDER :- PAGE 6 OF 12 426/IND/2007 & 439/IND/2007 RKDF EDUCATION SOCIETY, BHOPAL ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, THE LD. CIT(A) HAS ERRED IN DELETING THE ADDITION OF RS. 31 ,120/- MADE BY THE ASSESSING OFFICER ON ACCOUNT OF EXCESS PAYMENT MADE TO SHRI ANEES KHAN. 10. IN RESPECT OF ISSUE RAISED IN GROUND NO.2, IT IS NO TED THE ASSESSEE SOCIETY MADE A PAYMENT OF RS. 2,11,000/- TO MR. ANE ES KHAN AS BUS PLYING CHARGES AND A PAYMENT WAS RS. 5,06,780/- ON ACCOUNT OF CONTRACT OF CIVIL CONSTRUCTION ENTERED INTO BY THE SOCIETY WITH HIM. THE LEARNED COUNSEL HAS DRAWN OUR ATTENTION TO PAGE 67 (BACK SI DE) (INTERNAL PAGE 8 OF THE TRIBUNAL ORDER) PARA 3.9 AND FINDINGS OF THE TR IBUNAL IN PARA 5.6 AT PAGE 76, WHEREIN THE TRIBUNAL HAD HELD THAT SHRI AN EES KHAN NEVER GOT ANY UNUSUAL BENEFIT FROM THE ASSESSEE SOCIETY, AFTE R ANALYZING THE COMPARATIVE CHART OF OTHER PARTIES PROVIDING THE SA ME SERVICES TO THE ASSESSEE. HENCE, THIS ISSUE WAS COVERED IN FAVOUR O F THE ASSESSEE. 11. WE HAVE ALSO PERUSED MATERIAL ON RECORD AND IT IS N OTED THAT THE IMPUGNED SERVICES HAVE BEEN OBTAINED BY THE ASSESSE E SOCIETY FROM MR. ANEES KHAN AT COMPARABLE RATES. HENCE, THERE IS NO QUESTION OF ANY DISALLOWANCE AND APPLICATION OF PROVISIONS OF SECTI ON 13 OF THE ACT. ACCORDINGLY, WE CONFIRM THE ORDER OF THE LD. CIT(A) IN THIS REGARD. 12. GROUND NO. 3 READS AS UNDER :- PAGE 7 OF 12 426/IND/2007 & 439/IND/2007 RKDF EDUCATION SOCIETY, BHOPAL ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, THE LD. CIT(A) HAS ERRED IN DELETING THE ADDITION OF RS. 10 ,00,000 MADE BY THE ASSESSING OFFICER ON ACCOUNT OF UNEXPLA INED CASH CREDIT. 13. AS REGARDS THE ISSUE RAISED IN GROUND NO.3, IT IS N OTED THAT AN ADVANCE OF RS. 10 LAKHS WAS GIVEN BY DR. SUNIL KAPO OR TO MR. ROHIT JAIN FOR PURCHASE OF LAND FOR THE SOCIETY, WHO HAS RETUR NED THIS MONEY DIRECTLY TO THE SOCIETY AS THE LAND OWNED BY HIM WAS NOT FOU ND SUITABLE. THE IDENTITY OF THE PAYER IS ESTABLISHED, CAPACITY IS A LSO NOT IN DOUBT. HENCE, WE HOLD THAT THE LD. CIT(A) HAS RIGHTLY DELETED THE IMPUGNED ADDITION. THUS, THIS GROUND OF THE REVENUE IS ALSO DISMISSED. 14. AS REGARDS TO THE ADDITION OF RS. 8,25,000/-, IT I S NOTED THAT THE IMPUGNED SALE CONSIDERATION HAS BEEN TAKEN INTO CON SIDERATION WHILE WORKING OUT THE W.D.V. OF BUILDING, WHICH IS OTHERW ISE A CAPITAL RECEIPT AND HAS RIGHTLY BEEN REDUCED FROM THE OPENING W.D.V . TO WORK OUT THE AMOUNT ELIGIBLE FOR CLAIMING DEPRECIATION ON BUILDI NG. ACCORDINGLY, GROUND NO.4 OF THE REVENUE IS ALSO DISMISSED. 15. GROUND NO. 5 READS AS UNDER :- ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, THE LD. CIT(A) HAS ERRED IN DELETING THE ADDITION OF RS. 76 ,0001/- PAGE 8 OF 12 426/IND/2007 & 439/IND/2007 RKDF EDUCATION SOCIETY, BHOPAL MADE BY THE ASSESSING OFFICER ON ACCOUNT OF DONATIO N TO M.P.KRIDA PARISAD. 16. AS REGARDS TO THE ISSUE RAISED IN GROUND NO. 5, WE FIND THAT THE ASSESSEE HAS GIVEN DONATION TO DURGA UTSAV SAMITI F OR DURGA POOJA, ASTHA FOUNDATION FOR CULTURAL ACTIVITIES AND M.P.KR IDA PARISAD FOR NATIONAL GAMES, WHICH ARE RELATED TO THE OBJECTS OF THE TRUST, HENCE ALLOWABLE. ACCORDINGLY, WE HOLD THAT THE LD. CIT(A) HAS RIGHTLY DELETED THE ADDITION MADE BY THE ASSESSING OFFICER. 17. AS REGARDS TO ISSUE RAISED IN GROUND NO.6, WE FIND THAT PRELIMINARY EXPENSES WERE INCURRED AT THE TIME OF I NCORPORATION OF THE SOCIETY, WHICH WERE NOT WRITTEN OFF OR CLAIMED AS E XPENDITURE IN THE EARLIER PERIOD AND HAS BEEN CLAIMED BY WAY OF WRITE OFF IN THE YEAR UNDER CONSIDERATION . THERE IS NO ALLEGATION THAT THESE E XPENSES ARE NOT REQUIRED FOR THE OBJECTS OF THE ASSESSEE, AS WITHOUT INCORP ORATION OF THE SOCIETY, NO OTHER OBJECTS CAN BE ACHIEVED. IT IS ALSO NOTED THA T EVEN IT IS ADDED THEN THE APPLICATION OF SURPLUS FUND WOULD BE MORE THAN 85 %. THUS, HAVING NO CONSEQUENCE ON THE ASSESSMENT OF THE SOCIETY. HE NCE, WE ARE OF THE VIEW THAT THE LD. CIT(A) HAS RIGHTLY ALLOWED SUCH W RITE OFF. THUS, THIS GROUND OF THE REVENUE IS ALSO DISMISSED. 18. GROUND NOS. 7 & 8 READ AS UNDER :- PAGE 9 OF 12 426/IND/2007 & 439/IND/2007 RKDF EDUCATION SOCIETY, BHOPAL (7) ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, THE LD. CIT(A) HAS ERRED IN DELETING THE ADDITION OF RS . 1,97,121/- MADE BY THE ASSESSING OFFICER ON ACCOUNT OF INTEREST DISALLOWED. (8) ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, THE LD. CIT(A) HAS ERRED IN DELETING THE ADDITION OF RS . 10,79,259/- MADE BY THE ASSESSING OFFICER ON ACCOUN T OF BENEFIT OF INTEREST PASSED ON TO OTHER SOCIETIES . 19. AS REGARDS TO ISSUE RAISED IN GROUND NOS. 7 & 8, W E FIND THAT THE ASSESSEE HAS GIVEN LOANS TO VARIOUS SOCIETIES, WITH OUT INTEREST FOR A SHORT PERIOD. IT IS ALSO NOTED THAT SUCH SOCIETIES ARE PU RELY EDUCATIONAL AND CHARITABLE, HAVING REGISTRATION U/S 12A OF THE INCO ME-TAX ACT, 1961. IT IS ALSO NOTED THAT THE ASSESSEE INSTITUTION IS NOT CAR RYING ON ANY ACTIVITY OF PROFIT AND, THEREFORE, NO INTEREST WAS CHARGED FROM THE SAID SOCIETIES. IT IS FURTHER NOTED THAT THE TRIBUNAL, WHILE RESTORING TH E REGISTRATION U/S 12A TO THE ASSESSEE SOCIETY ALSO TOOK NOTE OF THE FACT OF INTEREST FREE LOAN GIVEN BY THE ASSESSEE TO VARIOUS SOCIETIES HAVING REGISTR ATION U/S 12A AND ALSO OBSERVED THAT THE LD. CIT WHILE CANCELLING THE REGI STRATION U/S 12A, DID NOT CONTROVERT THIS FACT, WHICH IMPLIEDLY MEANS THA T THESE ADVANCES HAVE BEEN FOUND BY THE TRIBUNAL TO HAVE BEEN MADE IN CO NSONANCE WITH THE OBJECT OF THE ASSESSEE SOCIETY. FURTHER, THE LD. CI T(A) HAS ALSO GIVEN PAGE 10 OF 12 426/IND/2007 & 439/IND/2007 RKDF EDUCATION SOCIETY, BHOPAL RELIEF AFTER CONSIDERING VARIOUS JUDICIAL DECISIONS . THE ASSESSEE HAS ALSO RELIED ON THE DECISION OF THE HON'BLE BOMBAY HIGH C OURT IN THE CASE OF CIT VS. TRUSTEES OF JADI TRUST, AS REPORTED IN 133 ITR 494 AND OTHER JUDICIAL DECISIONS WHICH ALSO SUPPORT ITS CLAIM. AC CORDINGLY, WE HOLD THAT NO DISALLOWANCE IS WARRANTED OUT OF INTEREST PAID N OR ANY NOTIONAL INTEREST IS TO BE CHARGED AS INCOME. WE FURTHER HOLD THAT TH E ASSESSEES INCOME IS LIABLE TO EXEMPTION U/S 11 & 12 OF THE ACT. THUS, T HESE GROUNDS OF THE REVENUES APPEAL IS ALSO DISMISSED. 20. IN THE RESULT, THE APPEAL FILED BY THE REVENUE IS DISMISSED. 21. NOW, WE SHALL TAKE UP THE REVENUES APPEAL IN I.T.A.NO.439/IND/2007. 22. GROUND NO. 1 READS AS UNDER :- ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, THE LD. CIT(A) HAS ERRED IN DELETING THE ADDITION OF RS. 4,34,83,912/- MADE BY THE ASSESSING OFFICER ON ACCO UNT OF EXCESS OF INCOME OVER EXPENDITURE UNDER NORMAL PROV ISIONS AND THEREBY ALLOWED THE BENEFIT OF EXEMPTION UNDER SECTION 11 AND 12 OF THE INCOME-TAX ACT. 23. BOTH THE PARTIES AGREED THAT THE ISSUE RAISED IN G ROUND NO.1 IS IDENTICAL TO GROUND NO.1 OF REVENUES APPEAL IN I.T .A.NO. 426/IND/2007 PAGE 11 OF 12 426/IND/2007 & 439/IND/2007 RKDF EDUCATION SOCIETY, BHOPAL DECIDED HEREINABOVE. HENCE, FOLLOWING THE SAME REAS ONS, THIS GROUND OF THE REVENUES APPEAL IS DISMISSED. 24. GROUND NO. 2 READS AS UNDER :- ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, THE LD. CIT(A) HAS ERRED IN DELETING THE ADDITION OF RS. 10 ,25,027/- ON ACCOUNT OF DISALLOWANCE OF INTEREST PAID TO BANK AND RS. 16,69,330/- ON ACCOUNT OF PROVISION OF INTEREST ON LOAN GIVEN TO OTHER SOCIETIES. 25. AS REGARDS THE ISSUE RAISED IN GROUND NO.2, BOTH T HE PARTIES SUBMITTED THAT THE ISSUE RAISED IN THIS GROUND WAS IDENTICAL TO THE ISSUES RAISED IN GROUNDS NO. 7 & 8 OF THE REVENUES APPEAL IN I.T.A.NO. 426/IND/2007, HENCE, FOLLOWING THE SAME REASONS, TH IS GROUND OF THE REVENUE IS ALSO DISMISSED. 26. GROUND NO. 3 READS AS UNDER :- ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, THE LD. CIT(A) HAS ERRED IN DELETING THE ADDITION OF RS. 1, 79,402/- FOR CLAIM EXCESS DEPRECIATION ON TUBE WELL AND ELEC TRIC INSTALLATION. 27. AS REGARDS THE GROUND NO.3, WE FIND THAT THE ASSESS EE CLAIMED DEPRECIATION ON TUBE WELL AND ELECTRICAL INSTALLATI ON @ 25 %, WHICH WAS REDUCED BY THE ASSESSING OFFICER TO 5 TO 15 % RESPE CTIVELY. PAGE 12 OF 12 426/IND/2007 & 439/IND/2007 RKDF EDUCATION SOCIETY, BHOPAL 28. THE LD. CIT(A) HAS AGREED WITH THE CONTENTION OF TH E ASSESSEE THAT DEPRECIATION ON SUCH ASSETS HAD BEEN CLAIMED A S PER THE RATES PRESCRIBED IN THE SCHEDULE. THESE FINDINGS OF THE L D. CIT(A) HAVE REMAINED UN-CONTROVERTED BEFORE US BY THE REVENUE. HENCE, WE HOLD THAT THERE IS NO INFIRMITY IN THE ORDER OF THE LD. CIT(A ). ACCORDINGLY, THIS GROUND OF THE REVENUE IS ALSO DISMISSED. 29. IN THE RESULT, THE APPEAL FILED BY THE REVENUE IS DISMISSED. 30. TO SUM UP, BOTH THE APPEALS OF THE REVENUE ARE DISM ISSED. THIS ORDER HAS BEEN PRONOUNCED IN THE OPEN COURT ON 26 TH NOVEMBER, 2009. SD/- SD/- (JOGINDER SINGH) (V. K. GUPTA) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED :20 TH NOVEMBER, 2009. CPU* 2024D25