DCIT (E) 2(1), NAVI MUMBAI V. THE SANTACRUZ RESIDENT ASSOCIATION, MUMBAI

ITA 6637/MUM/2016

• Counselvise Citation: [2017] 128 COUNSELVISE.COM (IT) 1308 (ITAT-MUMBAI)
• Duration Of Justice: 5 month(s) 8 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-04-2017
• Appeal Filed By: Department
• Bench Allotted: SMC
• Assessment Year: 2011-2012
• Appeal Filed On: 11-11-2016
• Court: TRIBUNAL
• Department Lawyers: BEENA SANTOSH
• Assessee Lawyers: GANESH IYER
• Keywords: Capital asset; Depreciation; Charitable institution; Tax effect
• Section: 10B

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL SMC , BENCH MUMBAI BEFORE SHRI R.C.SHARMA, AM ITA NO. 6637 / MUM/20 1 6 ( ASSESSMENT YEAR : 2011 - 12 ) DCIT (E) 2 (1), MUMBAI VS. THE SANTACRUZ RESIDENT ASSOCIATION, SMT BCJ GENERAL HOSPITAL, S.V. ROAD, SANTACRUZ (W), M UMBAI 400 054 PAN/GIR NO. AAATS8214L APPELLANT ) .. RESPONDENT ) REVENUE BY MS. BEENA SANTOSH ASSESSEE BY SHRI GANESH IYER DATE OF HEARING 20 / 04 /201 7 DATE OF PRONOUNCEME NT 20 / 04 /201 7 / O R D E R PER R.C.SHARMA (A.M) : THIS IS AN APPEAL FILED BY THE REVENUE AGAINST THE ORDER OF CIT(A) - 1, MUMBAI DATED 24/08/2016 FOR THE A.Y.2011 - 12 IN THE MATTER OF ALLOWING CLAIM OF DEPRECIATION ON FIXED ASSETS IN THE HANDS OF ASSESSEE - TRUST. 2. R IVAL CONTENTIONS HAVE BEEN HEARD AND RECORD PERUSED. 3. FACTS IN BRIEF ARE THAT THE ASSESSEE IS A CHARITABLE TRUST REGISTERED U/S.12A OF THE INCOME TAX ACT AND FILED ITS RETURN OF INCOME ON 30/12/2011 ALONGWITH THE INCOME AND EXPENDITURE ACCOUNT, BALANCE SHEET AND AUDIT REPORT IN FORM 10B DECLARING DEFICIT OF RS.1,59,12,890/ - . THE ASSESSMENT ORDER COMPLETED U/S.143(3) THE ACT ON 15/01/2014 DETERMINING THE TOTAL INCOME AT RS. NIL/ - BY DISALLOWING CLAIM IN RESPECT OF THE DEPRECIATION ON CAPITAL ASSETS RS.63, 66,643/ - . ITA NO. 6637/MUM/2016 THE SANTACRUZ RESIDENTS ASSOCIATION 2 4. ASSESSEES CLAIM OF DEPRECIATION WAS ALLOWED BY CIT(A) AFTER OBSERVING AS UNDER: - I HAVE CONSIDERED THE CONTENTION OF THE ASSESSEE AND ALSO THE RATIO OF JURISDICTIONAL HIGH COURT IN THE MATTER OF CIT V/S. INSTITUTE OF BANKING PERSONAL SELE CTION AS REPORTED IN 264 ITR 110 (BOM). HOWEVER, THE HONBLE APEX COURT IN 199 ITR 43 UNION OF INDIA V/S. ESCORTS LIMITED HAS HELD THAT DOUBLE DEDUCTION CANNOT BE ALLOWED UNDER ANY CIRCUMSTANCES. IT MAY ALSO BE PERTINENT TO MENTION THAT THE RATIO OF 264 IT R 110 (BOM) WAS PRONOUNCED BY THE HONBLE JURISDICTIONAL HIGH COURT WITHOUT TAKING INTO CONSIDERATION THE RATIO OF HONBLE APEX COURT IN 199 ITR 43. IT MAY ALSO BE FURTHER PERTINENT TO MENTION THAT THE JURISDICTION IN THE 264 ITR 110 (BOM) WAS ACCEPTED BY THE DEPARTMENT IN VIEW OF LOW TAX EFFECT INVOLVED AND NOT IN VIEW OF THE MERITS OF THE CASE. THEREFORE, RELYING ON THE RATIO OF THE APEX COURT IN 199 ITR 43 ESCORTS LIMITED, SINCE THE CLAIM OF DEPRECIATION OF RS.63,66,643/ - AMOUNTS TO DOUBLE DEDUCTION, THE SAME IS ALLOWED. 5. THE ISSUE IN QUESTION IS SQUARELY COVERED BY THE DECISION OF BOMBAY HIGH COURT IN CASE OF INSTITUTE OF BANKING PERSONNEL SELECTION 264 ITR 110 . RE SPECTFULLY FOLLOWING THE SAME, I DO NOT FIND ANY INFIRMITY IN THE ORDER OF CIT(A) FOR A LLOWING ASSESSEES CLAIM OF DEPRECIATION. 6. IN THE RESULT, APPEAL OF THE REVENUE IS DISMISSED. O RDER PRONOUNCED IN THE OPEN COURT ON THIS 20 / 04 /2017 S D/ - ( R.C.SHARMA ) ACCOUNTANT MEMBER MUMBAI ; DATED 26 / 04 /201 7 KARUNA SR. PS ITA NO. 6637/MUM/2016 THE SANTACRUZ RESIDENTS ASSOCIATION 3 COPY OF THE ORDER FORWARDED TO : BY ORDER, ( ASSTT. REGISTRAR) ITAT, MUMBAI 1. THE APPELLANT 2. THE RESPONDENT. 3. THE CIT(A), MUMBAI. 4. CIT 5. DR, ITAT, MUMBAI 6. GUARD FILE. //TRUE COPY//