DCIT, Bangalore V. M/s Subramanya Education Society, Bangalore

ITA 769/BANG/2016

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 7487 (ITAT-BANGALORE)
• Duration Of Justice: 1 year(s) 6 month(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-10-2017
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 21-06-2017
• Assessment Year: 2011-2012
• Appeal Filed On: 07-04-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: N SUKUMAR
• Keywords: Depreciation; Charitable institution
• Section: 6; 12; 11

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH : BANGALORE BEFORESHRI ARUN KUMAR GARODIA, ACCOUNTANT MEMBER AN D SHRI LALIET KUMAR, JUDICIAL MEMBER ITA NO S . 769 & 770/BANG/2016 ASSESSMENT YEAR S : 2011 - 12 & 2012 - 13 THE DEPUTY COMMISSIONER OF INCOME TAX (E), CIRCLE 1, BANGALORE. VS. M/S. SUBRAMANYA EDUCATION SOCIETY, NO. 1954, 8 TH MAIN, E BLOCK, 2 ND STAGE, RAJAJINAGAR, BANGALORE 560 010. PAN: AACTS 0427R APPELLANT RESPONDENT ASSESSEE BY : NONE REVENUE BY : SHRI N. SUKUMAR, ADDL. CIT (DR) DATE OF HEARING : 1 3 . 09 .201 7 DATE OF PRONOUNCEMENT : 13 .10 .2017 O R D E R PER SHRI A.K. GARODIA, ACCOUNTANT MEMBER BOTH THESE APPEALS ARE FILED BY THE REVENUE WHICH ARE DIRECTED AGAINST TWO SEPARATE ORDERS OF CIT (A)-14, LTU, BANGALORE BOTH DATED 28.01.2016 FOR ASSESSMENT YEARS 2011-12 AND 2012-13. 2. BOTH THESE APPEALS WERE HEARD TOGETHER AND ARE B EING DISPOSED OF BY WAY OF THIS COMMON ORDER FOR THE SAKE OF CONVENIENCE. NON E APPEARED ON BEHALF OF THE ASSESSEE ON THE APPOINTED DATE OF HEARING AND T HE APPEALS WERE HEARD EX- PARTE QUA THE ASSESSEE BECAUSE IT WAS NOTICED THAT THE ISSUE INVOLVED IN BOTH THESE APPEALS IS COVERED IN FAVOUR OF THE ASSESSEE BY THE JUDGMENT OF HONBLE KARNATAKA HIGH COURT. THE ONLY ISSUE INVOLVED IN B OTH THESE APPEALS IS REGARDING ALLOWABILITY OF DEDUCTION OF DEPRECIATION . THE LD. DR OF REVENUE SUPPORTED THE ASSESSMENT ORDER. HE ALSO SUBMITTED THAT THE PROVISIONS OF SUB SECTION 6 TO SECTION 11 SHOULD BE CONSIDERED AS CLA RIFICATORY IN NATURE AND THEREFORE, THE SAME SHOULD BE HELD TO BE RETROSPECT IVE. HE SUBMITTED COPY OF A JUDGMENT OF HONBLE APEX COURT RENDERED IN THE CASE OF DIRECTOR OF INCOME-TAX ITA NOS. 769 & 770/BANG/2016 PAGE 2 OF 3 VS. AL-AMEEN CHARITABLE TRUST AS REPORTED IN 242 TA XMAN 4 (SC) WHEREIN IT WAS HELD THAT SLP IS GRANTED AGAINST THE JUDGMENT O F HON'BLE KARNATAKA HIGH COURT WHEREIN IT WAS HELD THAT SECTION 11(6) INSERT ED VIDE FINANCE (NO. 2) ACT, 2014 DENYING DEPRECIATION WHILE COMPUTING INCOME OF CHARITABLE TRUST IS PROSPECTIVE IN NATURE AND OPERATES WITH EFFECT FROM 1-4-2015.THIS JUDGMENT OF HON'BLE KARNATAKA HIGH COURT IS REPORTED IN 383 ITR 517 (KARNATAKA). 3. WE HAVE CONSIDERED THE SUBMISSIONS OF LD. DR OF REVENUE AND HAVE GONE THROUGH THE ORDERS OF AUTHORITIES BELOW. WE FIND TH AT AS PER THE JUDGMENT OF HON'BLE KARNATAKA HIGH COURT RENDERED IN THE CASE O F DIRECTOR OF INCOME-TAX, EXEMPTIONS VS. AL-AMEEN CHARITABLE FUND TRUST (SUPR A), IT WAS HELD THAT SECTION 11(6) OF IT ACT IS PROSPECTIVE IN NATURE AN D OPERATES W.E.F. 01.04.2015. AS PER THE JUDGMENT OF HONBLE APEX COURT IN THE SA ME CASE, SLP FILED BY THE REVENUE AGAINST THIS JUDGMENT OF HON'BLE KARNATAKA HIGH COURT WAS GRANTED. IN OUR CONSIDERED OPINION, EVEN NOW, THE JUDGMENT OF H ON'BLE KARNATAKA HIGH COURT HOLDS FIELD BECAUSE THIS JUDGMENT HAS NOT BEE N REVERSED BY HONBLE APEX COURT AND ONLY PERMISSION WAS GRANTED TO THE R EVENUE FOR FILING APPEAL AGAINST THIS JUDGMENT OF HON'BLE KARNATAKA HIGH COU RT AND OPERATION OF THE JUDGMENT OF HON'BLE KARNATAKA HIGH COURT HAS NOT BE EN STAYED BY THE HONBLE APEX COURT. HENCE WE ARE BOUND TO FOLLOW THE JUDGM ENT OF HON'BLE KARNATAKA HIGH COURT WHICH IS IN FAVOUR OF THE ASSESSEE. RES PECTFULLY FOLLOWING THIS JUDGMENT OF HON'BLE KARNATAKA HIGH COURT, WE DECLIN E TO INTERFERE IN THE ORDER OF CIT (A) IN BOTH THE YEARS. 4. IN THE RESULT, BOTH THE APPEALS FILED BY THE REV ENUE ARE DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON THE DATE MENT IONED ON THE CAPTION PAGE. SD/- SD/- (LALIET KUMAR) (ARUN KUMAR GARODIA) JUDICIAL MEMBER ACCOUNTANT MEMBER BANGALORE, DATED, THE 13 TH OCTOBER, 2017. /MS/ ITA NOS. 769 & 770/BANG/2016 PAGE 3 OF 3 COPY TO: 1. APP ELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR, ITAT, BANGALORE. 6. GUARD FILE BY ORDER SENIOR PRIVATE SECRETARY, INCOME TAX APPELLATE TRIBUNAL, BANGALORE.