ACIT, Yamunanagar V. M/s Gauri Shankar Educational Trust, Yamunanagar

ITA 663/CHANDI/2014

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 90226 (ITAT-CHANDIGARH)
• Duration Of Justice: 11 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-07-2015
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 22-06-2015
• Assessment Year: 2008-2009
• Appeal Filed On: 14-07-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MANJIT SINGH
• Keywords: Capital asset; Depreciation; Charitable institution
• Section: 12AA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DIVISION BENCH,CHANDIGARH BEFORE SHRI BHAVNESH SAINI, JUDICIAL MEMBER AND SHRI T.R.SOOD, ACCOUNTANT MEMBER ITA NO. 663/CHD/2014 ASSESSMENT YEAR: 2008-09 THE ACIT, VS M/S GAURI SHANKAR CIRCLE, EDUCATIONAL TRUST, YAMUNA NAGAR. SCO 179, 2 ND FLOOR, COMMERCIAL BELT, SECTOR 17, HUDA, YAMUNA NAGAR. PAN: AAATG9991Q (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI MANJIT SINGH RESPONDENT BY : NONE DATE OF HEARING : 30.06.2015 DATE OF PRONOUNCEMENT : 02.07.2015 O R D E R PER BHAVNESH SAINI,JM THIS APPEAL BY REVENUE IS DIRECTED AGAINST THE ORDER OF LD. CIT(APPEALS) KARNAL DATED 07.11.2013 F OR ASSESSMENT YEAR 2008-09 IN WHICH REVENUE CHALLENGED THE DELETION OF ADDITION OF RS. 68,04,283/- ON ACCOUNT OF DISALLOWANCE OF DEPRECIATION ON CAPITAL ASSETS. 2. BRIEFLY THE FACTS OF THE CASE ARE THAT ASSESS EE IS CHARITABLE TRUST UNDER SECTION 12AA OF THE INCOME T AX ACT AND IS PROVIDING HIGHER TECHNICAL EDUCATION. THE A SSESSEE CLAIMED DEPRECIATION OF RS. 68,04,283/- ON THE FIXE D ASSETS. THE ASSESSING OFFICER DENIED THE CLAIM OF 2 DEPRECIATION BY APPLYING THE DECISION OF HON'BLE SU PREME COURT IN THIS CASE OF ESCORTS LTD. VS UNION OF INDI A 199 ITR 43 (S.C). 3. THE ASSESSEE SUBMITTED BEFORE THE LD. CIT(APPEAL S) THAT ASSESSEE IS CHARITABLE TRUST REGISTERED UNDER SECTION 12AA OF THE INCOME TAX ACT AND MAINTAINED ITS BOOKS OF ACCOUNT ON COMMERCIAL PRINCIPLES AND OVER THE YEARS HAD BEEN CLAIMING THE DEPRECIATION AS PER LAW. HE HAS RELIED UPON DECISION OF THE HON'BLE PUNJAB & HARYANA HIGH COURT IN THE CASE OF CIT VS MARKET COMMITTEE, PIPLI 238 CTR 103 IN WHICH SIMILAR CLAIM WAS ALLOWED. THE ASSESSEE ALSO RELIED UPON DECISION OF THE HON'BLE P UNJAB & HARYANA HIGH COURT IN THIS CASE OF CIT VS TINY TOTS EDUCATION TRUST 330 ITR 21 IN WHICH IT WAS HELD THA T THERE IS NO DOUBLE DEDUCTION CLAIMED BY THE ASSESSE E AS CANVASSED BY THE REVENUE. THE LD. CIT(APPEALS), FO LLOWING THE ABOVE DECISION OF THE HON'BLE PUNJAB & HARYANA HIGH COURT, DELETED THE ADDITION. 4. AFTER CONSIDERING THE SUBMISSIONS OF THE LD. DR, WE FIND THAT LD. CIT(APPEALS) WAS JUSTIFIED IN FOLLOWI NG THE DECISION OF THE JURISDICTIONAL HIGH COURT IN THE CA SE OF CIT VS TINY TOTS EDUCATION TRUST (SUPRA) IN WHICH IT WA S HELD AS UNDER : HELD, DISMISSING THE APPEAL, THAT THE ASSESSEE WAS NOT CLAIMING DOUBLE DEDUCTION ON ACCOUNT OF DEPRECIATION. THE INCOME OF THE ASSESSEE BEING EXEMPT, THE ASSESSEE WAS ONLY CLAIMING THAT DEPRECIATION SHOULD BE REDUCED FROM THE INCOME FOR DETERMINING THE PERCENTAGE OF FUNDS WHICH HAD TO BE APPLIED FOR THE PURPOSES OF THE TRUST. IT COULD 3 NOT BE HELD THAT DOUBLE BENEFIT WAS GIVEN IN ALLOWING THE CLAIM FOR DEPRECIATION FOR COMPUTING INCOME FOR THE PURPOSES OF SECTION 11. 5. THE ISSUE IS COVERED IN FAVOUR OF THE ASSESSEE. THE DEPARTMENTAL APPEAL THUS, HAS NO MERIT AND IS ACCOR DINGLY DISMISSED. 6. IN THE RESULT, APPEAL OF THE REVENUE IS DISMIS SED. ORDER PRONOUNCED IN THE OPEN COURT ON 2 ND JULY,2015. SD/- SD/- (T.R.SOOD) (BHAVNESH SAINI) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 2 ND JULY,2015. POONAM COPY TO: THE APPELLANT, THE RESPONDENT, THE CIT(A), THE CIT, DR ASSISTANT REGISTRAR, ITAT CHANDIGARH