Rotary Manav Seva Trust, Ichalkaranji V. Income-Tax Officer, Ward -1, Ichalkaranji

ITA 941/PUN/2022

AI Insights

The case involves Rotary Manav Seva Trust appealing against the order of the Commissioner of Income Tax (Appeals) which confirmed the disallowance of depreciation claim of Rs.7,50,394/- under section 143(1) of the Income Tax Act. The primary contention was that the disallowance was made without application of mind and without assigning any reasons. The Tribunal found merit in re-evaluating the circumstances under which the assets were purchased, specifically whether they were claimed as an application of income in the year of purchase, which would affect the eligibility for depreciation.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 134353 (ITAT-PUNE)
• Duration Of Justice: 2 month(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-02-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 09-02-2023
• Assessment Year: 2016-2017
• Appeal Filed On: 25-12-2022
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Depreciation; Rectification of order; Condonation of delay; Set aside
• Section: 6; 154; 11; 234B; 143(1)

Judgement Text

आयकर अपीलीय अिधकरण “बी” Ɋायपीठ पुणेमŐ। IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCHES “B” :: PUNE BEFORE SHRI S.S.GODARA, JUDICIAL MEMBER AND DR. DIPAK P. RIPOTE, ACCOUNTANT MEMBER आयकर अपील सं. / ITA No.941/PUN/2022 िनधाᭅरण वषᭅ / Assessment Year : 2016-17 Rotary Manav Seva Trust, 10/287/(1) Shri Niketan Building Bunglow Road, Ichalkaranji - 416115. PAN: AAATR 4595 H V s The Income Tax Officer, Ward-1, Ichalkaranji. Appellant/ Assessee Respondent / Revenue Assessee by Shri M.M.Kulkarani and Mrs. J.R.Chandeker – AR’s Revenue by Shri M.G.Jasnani – DR Date of hearing 10/02/2023 Date of pronouncement 28/02/2023 आदेश/ ORDER PER DR. DIPAK P. RIPOTE, AM: This appeal filed by the Assessee is directed against the order of ld.Commissioner of Income Tax(Appeal)[NFAC], Delhi dated 13.12.2021 for A.Y.2016-17 emanating from the rectification order under section 154 dated 06.01.2020. The Assessee has raised the following grounds of appeal: “1. On the facts and in the circumstances of the case and in law the original assessment was completed u/s 143(1) of the Act meaning thereby the reasons were not mentioned for disallowance of depreciation. The disallowance has been made without application of mind and without assigning any reasons. The depreciation disallowed be restored to the appellant. ITA No.941/PUN/2022 Rotary Manav Seva Trust [A] 2 2. On the facts and in the circumstances of the case and in law the appellate order dismissing the claim of the assessee be set aside and restored to the file of the Assessing Officer for fresh adjudication. 3. On the facts and in the circumstances of the case and in law the filing of the appeal is delayed as the same was not filed within the limitation of sixty days. The appellant was prevented by sufficient cause. The appellant will file his application for condonation of delay supported by sworn affidavit. The appeal be admitted for adjudication. 4. On the facts and in the circumstances of the case and it law the levy of interest u/s 234A, 234B and 234C is not justified. 5. The appellant craves to leave, add/amend or alter any of the above grounds of appeal.” Brief facts of the case : 2. The assessee’s claim of depreciation of Rs.7,50,394/- was denied under section 143(1) of the Act. The assessee filed rectification application before ADIT(CPC). The rectification application was rejected. Aggrieved by the same, the assessee filed appeal before the ld.CIT(A) who confirmed the order of the Assessing Officer(AO). Aggrieved by the same, assessee filed appeal before this Tribunal. Findings & Discussion : 3. The only issue to be decided is depreciation claim of Rs.7,50,394/-. The claim of depreciation was rejected on the ground ITA No.941/PUN/2022 Rotary Manav Seva Trust [A] 3 that w.e.f.01.04.2015 sub-section 6 has been inserted in section 11 which is as under: “In this section where any income is required to be applied or accumulated or set apart for application, then, for such purposes the income shall be determined without any deduction or allowance by way of depreciation or otherwise in respect of any asst, acquisition of which has been claimed as an application of income under this section in the same or any other previous year.” 4. However, the ld.Authorised Representative(ld.AR) for the assessee pleaded before us that when the assets were purchased, it was not claimed as application of income. The ld.AR has not filed any documentary evidence before us. Therefore, in the interest of justice, we set-aside the issue to the file of Assessing Officer(AO). The AO shall verify assessee’s claim that when assets were purchased, no application of income was claimed. If assessee had not claimed the amounts as application of income when the assets were purchased, then the assessee will be eligible for deprecition for the said assets. The AO shall give opportunity to the assessee. Assessee shall file all necessary documents before the AO. Accordingly, the grounds of appeal raised by the assessee are allowed for statistical purpose. 5. In the result, appeal of the assessee is allowed for statistical purpose. ITA No.941/PUN/2022 Rotary Manav Seva Trust [A] 4 Order pronounced in the open Court on 28 th February, 2023. Sd/- Sd/- (S.S.GODARA) (DR. DIPAK P. RIPOTE) JUDICIAL MEMBER ACCOUNTANT MEMBER पुणे / Pune; ᳰदनांक / Dated : 28 th Feb, 2023/ SGR* आदेशकᳱᮧितिलिपअᮕेिषत / Copy of the Order forwarded to : 1. अपीलाथᱮ / The Appellant. 2. ᮧ᭜यथᱮ / The Respondent. 3. The CIT(A), concerned. 4. The Pr. CIT, concerned. 5. िवभागीयᮧितिनिध, आयकर अपीलीय अिधकरण, “बी” बᱶच, पुणे / DR, ITAT, “B” Bench, Pune. 6. गाडᭅफ़ाइल / Guard File. आदेशानुसार / BY ORDER, // TRUE COPY // Senior Private Secretary आयकर अपीलीय अिधकरण, पुणे/ITAT, Pune.