ACIT, Exemptions, Hyderabad, Hyderabad V. Kamineni Educational Soceity, Hyderabad, Hyderabad

ITA 956/HYD/2017

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 2427 (ITAT-HYDERABAD)
• Duration Of Justice: 5 month(s) 12 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-11-2017
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2013-2014
• Appeal Filed On: 02-06-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: PATHLAVATH PEERYA
• Assessee Lawyers: K A SAI PRASAD
• Keywords: Depreciation; Cost of acquisition
• Section: 143(3); 11

Judgement Text

THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH B, HYDERABAD BEFORE SMT P. MADHAVI DEVI, JUDICIAL MEMBER AND SHRI B. RAMAKOTAIAH, ACCOUNTANT MEMBER ITA NO. 956/HYD/2017 ASSESSMENT YEAR: 2013-14 ASST. COMMISSIONER OF INCOME TAX, EXEMPTIONS, HYDERABAD. VS. KAMINENI EDUCATION SOCIETY, HYDERABAD. PAN AAATK6305J (APPELLANT) (RESPONDENT) REVENUE BY : SHRI PATHLAVATH PEERYA ASSESSEE BY : SHRI K.A. SAI PRASAD DATE OF HEARING : 02-11-2017 DATE OF PRONOUNCEMENT : 15-11-2017 ORDER PER P. MADHAVI DEVI, J.M.: IN THIS APPEAL, THE REVENUE IS AGGRIEVED BY THE ORDER OF THE CIT(A)-9, HYDERABAD, DATED 19-01-2017, DELETING THE DISALLOWANCE OF THE DEPRECIATION CLAIM OF THE ASSESSEE WHICH WAS DISALLOWED BY THE A.O. 2. ASSESSEE FILED ITS RETURN OF INCOME FOR THE A.Y 2013-14 ON 01-10-2013 CLAIMING EXEMPTION U/S 11 OF THE ACT AND DECLARING TOTAL INCOME AT RS. NIL. DURING THE ASSESSMENT PROCEEDINGS U/S 143(3) OF THE ACT, THE A.O OBSERVED THAT THE ASSESSEE HAS CLAIMED DEPRECIATION AMOUNTING TO RS. 7,45,41,699/-. HE VERIFIED THE PREVIOUS RECORDS OF THE ASSESSEE AND FOUND THAT THE COST OF ACQUISITION OF THE ASSETS, ON WHICH THE DEPRECIATION IS NOW CLAIMED, HAS ALREADY BEEN CLAIMED AND ALLOWED AS APPLICATION OF INCOME 2 ITA NO. 956/HYD/2017 KAMINENI EDUCATION SOCIETY, HYDERABAD. IN THE EARLIER ASSESSMENT YEARS. FOLLOWING THE JUDGMENT OF THE HONBLE SUPREME COURT IN THE CASE OF ESCORTS VS UNION OF INDIA (1993) ITR 43(SC), THE A.O DISALLOWED THE CLAIM OF DEPRECIATION AND BROUGHT IT TO TAX. WHILE DISALLOWING THE SAID CLAIM, HE ALSO OBSERVED THAT ITAT HAD ALLOWED THE CLAIM OF DEPRECIATION IN THE EARLIER ASSESSMENT YEARS IN THE ASSESSEES OWN CASE BUT BECAUSE DEPARTMENT HAS FILED AN APPEAL U/S 260(A) OF THE ACT AND MATTER IS PENDING BEFORE THE HONBLE HIGH COURT OF ANDHRA PRADESH, HE DISALLOWED THE CLAIM FOR THE RELEVANT ASSESSMENT YEAR. 3. AGGRIEVED, THE ASSESSEE CARRIED THE MATTER TO THE CIT(A), WHO FOLLOWING THE DECISION OF THE ITAT IN THE ASSESSEES OWN CASE IN THE EARLIER ASSESSMENT YEARS, HAS DELETED THE DISALLOWANCE AND THE REVENUE IS IN APPEAL BEFORE US. 4. AS IS CLEAR FROM THE ASSESSMENT ORDER AS WELL AS THE ORDER OF THE CIT(A) AND AS POINTED OUT BY THE LD. COUNSEL FOR THE ASSESSEE, THE ISSUE IN DISPUTE IS SQUARELY COVERED BY THE DECISION OF THE ITAT IN ASSESSEES OWN CASE FOR THE EARLIER ASSESSMENT YEARS I.E 2010-11, 2011-12 AND 2012-13 WHEREIN THE TRIBUNAL HAS ALLOWED THE CLAIM OF DEPRECIATION ON THE ASSETS EVEN THOUGH THEIR COST, WAS ALLOWED AS AN APPLICATION OF INCOME IN THE YEAR OF ACQUISITION. COPIES OF DECISION OF ITAT IN THE ASSESSEES OWN CASE FOR THE EARLIER ASSESSMENT YEARS HAVE BEEN FILED BEFORE US. TAKING THE SAME INTO CONSIDERATION, WE REJECT THE GROUNDS OF APPEAL RAISED BY REVENUE. 3 ITA NO. 956/HYD/2017 KAMINENI EDUCATION SOCIETY, HYDERABAD. 5. IN THE RESULT, THE APPEAL FILED BY THE REVENUE IS DISMISSED. PRONOUNCED IN THE OPEN COURT ON 15 TH NOVEMBER, 2017. SD/- SD/- (B. RAMAKOTAIAH) (P. MADHAVI DEVI) ACCOUNTANT MEMBER JUDICIAL MEMBER HYDERABAD, DATED:15 TH NOVEMBER, 2017 KRK 1) KAMINENI EDUCATIONAL SOCIETY, 5-9-261/2, KING KOTI, HYDERABAD. 2) ACIT, EXEMPTIONS, HYDERABAD 3) CIT(A) -9, HYDERABAD 4) CIT, (EXEMPTIONS), HYDERABAD 5) THE DEPARTMENTAL REPRESENTATIVE, I.T.A.T., HYDERABAD. 6) GUARD FILE