DCIT, Udupi V. M/s. Manipal Finance Corporation Ltd., Manipal

ITA 541/BANG/2009

• Counselvise Citation: [2009] 115 COUNSELVISE.COM (IT) 0648 (ITAT-BANGALORE)
• Duration Of Justice: 5 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-11-2009
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 1994-1995
• Appeal Filed On: 27-05-2009
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: V S SREELEKHA
• Assessee Lawyers: VINAY
• Keywords: Depreciation

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH : BANGALORE BEFORE SHRI K.P.T. THANGAL, VICE-PRESIDENT AND SHRI AKBER BASHA, ACCOUNTANT MEMBER ITA NO.541/BANG/2009 ASSESSMENT YEAR : 1994-95 DCIT, CIRCLE-1, UDUPI. : APPELLANT VS. M/S. MANIPAL FINANCE CORPORATION LTD., MANIPAL HOUSE, MANIPAL. : RESPONDENT APPELLANT BY : SMT. V.S. SREELEKHA RESPONDENT BY : SHRI. VINAY O R D E R PER AKBER BASHA, ACCOUNTANT MEMBER THIS APPEAL IS FILED BY THE REVENUE AGAINST THE O RDER OF THE CIT(APPEALS), MANGALORE DATED 26.3.2009 2. THE MAIN QUESTION ARISING OUT OF THE APPEAL OF T HE REVENUE IS WHETHER THE ASSESSEE IS ENTITLED TO DEPRECIATION UP ON ASSETS OWNED BY IT AND LEASED IN FAVOUR OF EDUCATIONAL INSTITUTIONS WH ICH HAD MADE INTEREST EARNING DEPOSITS WITH THE ASSESSEE AND WHETHER THE CLAIM OF DEDUCTION OF CAPITAL PORTION OF LEASE RENT RECEIVED FROM LESSOR FROM THE COMPUTATION OF INCOME IS CORRECT OR NOT. ITA NO.541/BANG/09 PAGE 2 OF 2 3. AT THE OUTSET, THE LEARNED DR SUBMITTED THAT THE ISSUE IS COVERED IN FAVOUR OF THE DEPARTMENT BY THE DECISION OF THE KAR NATAKA HIGH COURT IN THE ASSESSEES GROUP COMPANY CASE M/S. I.C.D.S. LIMITED VS. CIT, MYSORE IN ITA NO.101/2000 9 TH FEBRUARY, 2007. THE LEARNED COUNSEL MR. VINAY FOR THE ASSESSEE DID NOT DISPUTE THE SAME. 4. RESPECTIVELY FOLLOWING THE DECISION OF KARNATAKA HIGH COURT IN THE CASE OF M/S. I.C.D.S. LIMITED VS. CIT, MYSORE [SUPR A], WE ALLOW THE APPEAL OF THE REVENUE. 5. IN THE RESULT, THE APPEAL OF THE REVENUE IS ALLO WED. PRONOUNCED IN THE OPEN COURT ON THIS 20 TH DAY OF NOVEMBER, 2009. SD/- SD/- (K.P.T. THANGAL ) (AKBER BASHA ) VICE PRESIDENT ACCOUNTANT MEMBER BANGALORE, DATED, THE 20 TH NOVEMBER, 2009. DS/- COPY TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR, ITAT, BANGALORE. 6. GUARD FILE (1+1) BY ORDER ASSISTANT REGISTRAR ITAT, BANGALORE.