ITO (E) 2(1), MUMBAI V. MANDAR EDUCATION SOCIETY, MUMBAI

ITA 5341/MUM/2015

• Counselvise Citation: [2017] 126 COUNSELVISE.COM (IT) 9066 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 10 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-10-2017
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2011-2012
• Appeal Filed On: 16-11-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SUMAN KUMAR
• Keywords: Depreciation; Charitable institution
• Section: 143(3); 142(1)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, MUMBAI BENCH B, MUMBAI BEFORE SHRI D.T. GARASIA, JUDICIAL MEMBER AND SHRI MANOJ KUMAR AGGARWAL, ACCOUNTANT MEMBER ITA NO.5341/M/2015 ASSESSMENT YEAR: 2011-12 INCOME TAX OFFICER (E)2(1), R. NO.512, 5 TH FLR., PIRAMAL CHAMBERS, LALBAUG, MUMBAI 400 028 VS. M/S. MANDAR EDUCATION SOCIETY, B-91-93, PASCHIM APARTMENT, OPP. KIRTI COLLEGE, R.D. ROAD, DADAR, MUMBAI-400 028 PAN: AAATM 5371Q (APPELLANT) (RESPONDENT) PRESENT FOR: ASSESSEE BY : NONE REVENUE BY : SHRI SUMAN KUMAR, D.R. DATE OF HEARING : 17.08.2017 DATE OF PRONOUNCEMENT : 13.10.2017 O R D E R PER D.T. GARASIA , JUDICIAL MEMBER: THE PRESENT APPEAL HAS BEEN PREFERRED BY THE REVEN UE AGAINST THE ORDER DATED 25.08.2015 OF THE COMMISSIONER OF I NCOME TAX (APPEALS) [HEREINAFTER REFERRED TO AS THE CIT(A)] R ELEVANT TO ASSESSMENT YEAR 2011-12. 2. THE SHORT FACTS OF THE CASE ARE THAT THE ASSESSE E IS A CHARITABLE TRUST FOR ADVANCEMENT OF EDUCATION AMONG THE CHILDR EN OF RESIDENTS OF TALUKA CLILPIUN, DIST. RATNAGIRI AND THOSE RESID ING IN ADJOINING ITA NO.5341/M/2015 M/S. MANDAR EDUCATION SOCIETY 2 RURAL AREAS IN GENERAL. THE ASSESSEE TRUST ALSO CON DUCTS SCHOOLS AND COLLEGES INCLUDING COLLEGES OF ENGINEERING, PHARMAC Y, MANAGEMENT AND INDUSTRIAL TRAINING CENTRE. IT FILED THE RETURN OF INCOME FOR A.Y. 2011-12 ON 29/09/2011 SHOWING NIL INCOME. THE TRUST IS REGISTERED AS A CHARITABLE ORGANIZATION WITH DIT (E), MUMBAI U /S 12A(A) VIDE REGISTRATION NO. INS/24140 DATED 30.10.1984 AND REG ISTERED WITH CHARITY COMMISSIONER, MUMBAI VIDE REGISTRATION NO.F -9792 (MUM). THE RETURN WAS PROCESSED U/S 143(1). THE CASE WAS S ELECTED FOR SCRUTINY AND NOTICES U/S 143(2) AND 142(1) WERE ISS UED. THE ASSESSMENT WAS COMPLETED U/S 143(3) ON 22.01.2014 D ETERMINING TOTAL INCOME AT RS.1,53,19,080/- BY DISALLOWING DEP RECIATION OF RS.1,55,19,614/- IN RESPECT OF THE ASSETS, THE CAPI TAL EXPENDITURE OF WHICH HAS ALREADY BEEN CLAIMED AND ALLOWED AS APPLI CATION OF INCOME IN THE CURRENT OR EARLIER YEARS. 3. MATTER CARRIED TO THE LD. CIT(A) AND THE LD. CIT (A) HAS ALLOWED THE APPEALS OBSERVING AS UNDER: 5. I HAVE CAREFULLY CONSIDERED THE FACTS OF THE CAS E AND THE SUBMISSION OF THE AR. I HAVE ALSO GONE THROUGH THE DECISIONS RELIED ON BY THE APPELLANT. ON IDENTICAL ISSUE, THE APPEAL FOR THE A.Y. 2008-09 WAS DECIDED IN FAVOUR OF THE APPELLANT BY THE HON'BLE TRIBUNAL VIDE ITS ORDER NO.3656/MUM/2013 DA TED 07.05.2015. WHILE DECIDING THE ISSUE, THE HON'BLE ITAT HAS RELIED ON THE DECISION OF HON'BLE BOMBAY HIGH COURT IN THE CASE OF CIT V. INSTITUTE OF BANKI NG PERSONNEL SERVICES, 264 ITR 110 (BORN) AND CIT VS. MARKET COMMITTEE PEEPLI, 330 ITR 16 (P & H). HENCE RESPECTFULLY FOLLOWING THE DECISION OF THE ITAT IN ASSESSEE'S OW N CASE, THE AO IS DIRECTED TO ALLOW THE CLAIM OF DEPRECIATION IN RESPECT OF THE I MPUGNED ASSETS FOR THE A.Y.2011- 12. 6. IN THE RESULT, THE APPEAL IS ALLOWED. 4. NONE APPEARED ON BEHALF OF THE ASSESSEE. WE FIN D THAT SIMILAR ADDITION HAS BEEN DELETED BY ITAT IN ASSESSEES OWN CASE IN ITA ITA NO.5341/M/2015 M/S. MANDAR EDUCATION SOCIETY 3 NO.3656/M/2013 FOR A.Y. 2008-09 VIDE ORDER DATED 07 .05.2015. RESPECTFULLY FOLLOWING THE ORDER OF THE TRIBUNAL, W E DECIDE THIS APPEAL IN FAVOUR OF THE ASSESSEE. 5. IN THE RESULT, APPEAL OF THE REVENUE IS DISMISSE D. ORDER PRONOUNCED IN THE OPEN COURT ON 13.10.2017. SD/- SD/- (MANOJ KUMAR AGGARWAL) (D.T. GARASIA) ACCOUNTANT MEMBER JUDICIAL MEMBER MUMBAI, DATED: 13.10.2017. * KISHORE, SR. P.S. COPY TO: THE APPELLANT THE RESPONDENT THE CIT, CONCERNED, MUMBAI THE CIT (A) CONCERNED, MUMBAI THE DR CONCERNED BENCH //TRUE COPY// [ BY ORD ER DY/ASSTT. REGISTRAR, ITAT, MUMBAI.