MERCY COLLEGE,PALAKKAD V. INCOME TAX OFFICER , WARD -1, PALAKKAD

ITA 695/COCH/2025

AI Insights

The case involves Merecy College, an educational institution, which appealed against the order of the Commissioner of Income Tax (Appeals)-2, Gurugram, for the Assessment Year 2011-12. The primary contention arose from the Income Tax Officer's assessment, which significantly increased the declared income from Rs. 1,35,490 to Rs. 26,48,470, by taxing excess income over expenditure, disallowing provision for contingency expenditure, and disallowing depreciation. The CIT(A) upheld the AO's decision, leading to the current appeal. The Tribunal found that not all grounds of appeal were addressed by the CIT(A) and thus remanded the case for a comprehensive re-evaluation.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 783953 (ITAT-COCHIN)
• Duration Of Justice: 1 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-11-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: SMC
• Assessment Year: 2011-2012
• Appeal Filed On: 01-10-2025
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: LEENA LAL
• Keywords: Depreciation
• Section: 143(3)

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL COCHIN BENCH BEFORE SHRI INTURI RAMA RAO, AM ITA No. 695/Coch/2025 Assessment Year: 2011-12 Merecy College .......... Appellant Mercy Coolege Junction, Palakkad 678006 [PAN: AAAAM1646D] vs. The Income Tax Officer, Ward-1, Palakkad .......... Respondent Assessee by: ------- None ------- Revenue by: Smt. Leena Lal, Sr. D.R. Date of Hearing: 03.11.2025 Date of Pronouncement: 10.11.2025 O R D E R This appeal filed by the assessee is directed against the order of the Commissioner of Income Tax (Appeals)-2, Gurugram [CIT(A)] dated 23.07.2025 for Assessment Year (AY) 2011-12. 2. Brief facts of the case are that the appellant is a society running educational institution. The return of income for AY 2011- 12 was filed on 01.02.2012 declaring total income of Rs. 1,35,490/-. Against the said return of income, the assessment was completed by the Income Tax Officer, Ward 1, Palakkad vide order dated 12.03.2014 passed u/s. 143(3) of the Income Tax Act, 1961 (the Act) at a total income of Rs. 26,48,470/-. While doing so, the AO Printed from counselvise.com 2 ITA No. 695/Coch/2025 Merecy College brought to tax excess income over expenditure of Rs. 19,35,801/-, disallowed provision for contingency expenditure of Rs. 1,10,000 and disallowed depreciation of Rs. 6,02,667/-. 3. Being aggrieved, an appeal was filed before the CIT(A), who vide the impugned order confirmed the action of the AO. 4. Being aggrieved, the appellant is in appeal before this Tribunal in the present appeal. 5. At the outset, we find that the appellant had raised several grounds before the CIT(A). The CIT(A) had failed to adjudicate all the grounds of appeal filed before him. Therefore, I remand the matter back to the file of the CIT(A) for de novo disposal of the appeal in accordance with law after affording reasonable opportunity of hearing to the appellant. 6. In the result, the appeal filed by the assessee stands partly allowed for statistical purposes. Order pronounced in the open court on 10th November, 2025. Sd/- (INTURI RAMA RAO) ACCOUNTANT MEMBER Cochin, Dated: 10th November, 2025 n.p. Printed from counselvise.com 3 ITA No. 695/Coch/2025 Merecy College Copy to: 1. The Appellant 2. The Respondent 3. The Pr. CIT concerned 4. The Sr. DR, ITAT, Cochin 5. Guard File By Order Assistant Registrar ITAT, Cochin Printed from counselvise.com "