Mata Amritanandamayi Charitable Trust, Kollam V. The ACIT, Alappuzha

ITA 83/COCH/2015

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 96744 (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 .83 /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. 83/COCH/2015 (ASST YEAR 2009 - 10 ) MATA AMRITANANDAMAYI CHARITABLE TRUST AMRITAPURAI PO KOLLAM DIST KERALA VS THE ASST COMMR OF INCOME TAX CIRCLE 1 ALAPPUZHA ( APPELLANT) (RESPONDENT) PAN NO. AAATM2404N ASSESSEE BY SH R KRISHNAN REVENUE BY SH K P GOPAKUMAR, SR DR DATE OF HEARING 05 TH , OCT 2015 DATE OF PRONOUNCEMENT 05 TH OCT 2015 ORDER PER GEORGE GEORGE. K. J M: THIS APPEAL AT THE INSTANCE OF THE ASSESSEE IS DIRECTED AGAINST THE CIT(A)S ORDER DATED 31.10.2014. THE RELEVANT ASSESSMENT YEAR IS 2009 - 10. 2 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. 3 THE BRIEF FACTS OF THE CASE ARE AS FOLLOWS: ITA NO .83 /C/2015 2 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. 4,40,93,762/ - . THE ASSESSMEN T U/S 143(3) OF THE ACT WAS COMPLETED BY DISALLOWING THE DEPRECIATION TO THE EXTENT OF RS. 7,38,122/ - ON THE GROUND THAT THE COST OF THE ASSET HAS ALREADY BEEN TREATED AS AN APPLICATION AND NO FURTHER DEPRECATION IS ALLOWABLE. 4 ON FURTHER APPEAL, THE CIT (A) CONFIRMED THE VIEW TAKEN BY THE AO. 5 THE ASSESSEE BEING AGGRIEVED IS IN APPEAL BEFORE US. THE LD COUNSEL FOR THE ASSESSEE FAIRLY SUBMITTED THAT THE ISSUE IN QUESTION IS COVERED BY THE JUDGMENT OF THE HONBLE JURISDICTIONAL HIGH COURT IN THE CASE O F LISSIE MEDICAL INSTITUTIONS REPORTED IN 348 ITR 344(KER) . THE LD DR PRESENT WAS DULY HEARD. 6 WE HAVE HEARD BOTH THE PARTIES AND PERUSED THE MATERIAL ON RECORD. THE SOLITARY ISSUE THAT ARISES FOR OUR CONSIDERATION IS WHETHER DEPRECIATION U/S 32 CAN B E 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 CONSIDERED 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 ITA NO .83 /C/2015 3 JUDGMENT, WE UPHOLD THE ORDER OF THE CIT(A) AND REJECT THE CLAIM OF THE ASSESSEE. 7 IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON THIS 5 TH DAY OF OCT 2015 . SD/ - SD/ - ( 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 ORD ER ASSISTANT REGISTRAR ITAT, COCHIN