Matha Amritanandamayi Mission trust, Kollam V. The ACIT, Alappuzha

ITA 81/COCH/2015

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 96741 (ITAT-COCHIN)
• Duration Of Justice: 8 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-10-2015
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: DB
• Next Hearing Date: 05-10-2015
• Assessment Year: 2009-2010
• Appeal Filed On: 02-02-2015
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: K P GOPAKUMAR
• Assessee Lawyers: R KRISHNAN
• Keywords: Depreciation; Charitable institution
• Section: 143(3); 12A; 32

Judgement Text

ITA NO S 81 & 82 /C/2015 1 IN THE INCOME TAX APPELLATE TRIBUNAL COCHIN BENCH, COCHIN BEFORE S/SHRI B P JAIN , A M & GEORGE GEORGE.K , J M ITA NO S . 81 & 82/COCH/2015 (ASST YEAR S 2009 - 10 & 2010 - 11 ) MATA AMRITANANDAMAYI MISSION TRUST AMRITAPURAI PO KOLLAM DIST KERALA VS THE ASST COMMR OF INCOME TAX CIRCLE 1 ALAPPUZHA ( APPELLANT) (RESPONDENT) PAN NO. AAATM2405P ASSESSEE BY SH R KRISHNAN REVENUE BY SH K P GOPAKUMAR, SR DR DATE OF HEARING 05 TH , OCT 2015 DATE OF PRONOUNCEMENT 5 TH OCT 2015 ORDER PER GEORGE GEORGE. K. J M: THESE APPEALS AT THE INSTANCE OF THE ASSESSEE ARE DIRECTED AGAINST TWO SEPARATE ORDERS BOTH DATED 31.10.2014 OF THE CIT(A). THE RELEVANT ASSESSMENT YEARS ARE 2009 - 10 AND 2010 - 11. 2 SINCE COMMON ISSUE IS INVOLVED IN THESE APPEALS AND THEY PERTAIN TO T HE SAME ASSESSEE, WE DISPOSE OF THE SAME BY THIS COMMON ORDER FOR THE SAKE OF CONVENIENCE. ITA NO S 81 & 82 /C/2015 2 3 THE SOLITARY ISSUE THAT ARISES FOR OUR CONSIDERATION IS WHETHER DEPRECIATION CAN BE CLAIMED AS DEDUCTION WHEN THE COST OF ASSET HAS BEEN ALLOWED AS APPLICATION OF INCOME. 4 THE BRIEF FACTS OF THE CASE ARE AS FOLLOWS: THE ASSESSEE IS A CHARITABLE TRUST REGISTERED U/S 12A OF THE ACT. THE RETURN OF INCOME HAS BEEN FILED DECLARING LOSS INCOME OF RS. 5,42,24,582/ - FOR THE AY 2009 - 10 AND RS.5,36,19,133/ - FOR THE AY 2 010 - 11 RESPECTIVELY . THE ASSESSMENT U /S 143(3) OF THE ACT WAS COMPLETED BY DISALLOWING THE DEPRECIATION TO THE EXTENT OF RS. 1,27,313/ - FOR THE AY 2009 - 10 AND RS. 2,01,029/ - FOR THE AY 2010 - 11 RESPECTIVELY/ - ON THE GROUND THAT THE COST OF ASSET HAS BEEN T REATED AS AN APPLICATION AND NO FURTHER DEPRECATION IS ALLOWABLE. 5 ON FURTHER APPEAL, THE CIT(A) CONFIRMED THE V IEW TAKEN BY THE AO. 6 THE ASSESSEE BEING AGGRIEVED IS IN APPEAL BEFORE US. THE LD COUNSEL FOR THE ASSESSEE FAIRLY SUBMITTED THAT THE ISSU E IN QUESTION IS COVERED BY THE JUDGMENT OF THE HONBLE JURISDICTIONAL HIGH COURT IN THE CASE OF LISSIE MEDICAL INSTITUTIONS REPORTED IN 348 ITR 344(KER) . THE LD DR PRESENT WAS DULY HEARD. 7 WE HAVE HEARD BOTH THE PARTIES AND PERUSED THE MATERIAL ON RECO RD. THE SOLITARY ISSUE THAT ARISES FOR OUR CONSIDERATION IS WHETHER DEPRECIATION U/S 32 CAN ITA NO S 81 & 82 /C/2015 3 BE ALLOWED ON ASSETS FOR WHICH THE COST OF ASSETS HAS BEEN CONSIDERED AS APPLICATION OF INCOME U/S 11(1)(A) OF THE ACT. THIS ISSUE HAS BEEN COMPREHENSIVELY CONS IDERED AND ADJUDICATED IN FAVOUR OF THE REVENUE BY THE JUDGMENT OF THE HONBLE JURISDICTIONAL HIGH COURT IN THE CASE OF LISSIE MEDICAL INSTITUTIONS (SUPRA). IN VIEW OF THE ABOVE HONBLE JURISDICTIONAL HIGH COURTS JUDGMENT, WE UPHOLD THE ORDER OF THE CIT( A) AND REJECT THE CLAIM OF THE ASSESSEE. 8 IN THE RESULT, THE APPEAL S FILED BY THE ASSESSEE ARE DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON THIS 5 TH DAY OF OCT 2015 . SD/ - S D / - ( B P JAIN ) ( GEORGE GEORGE K ) ACCOUNTANT MEMBER JUDICIAL MEMBER COCHIN: DATED 5 TH OCT 2015 RAJ* COPY TO: 1 . APPELLANT 2 . RESPONDENT 3 . CIT(A) 4 . CIT, 5 . DR 6 . GUARD FILE BY ORDER ASSISTANT REGISTRAR ITAT, COCHIN