Ito New Delhi v. M S Indian Youth Centre Trust Vishwa Yuvak Kendra New Delhi

Ita No 1625 Del 2015 1 In The Income Tax Appellate Tribunal Delhi Bench C New Delhi Before Shri N K Saini Accountant Member Shri K N Chary Judicial Member Ita No 1625 Del 2015 Assessment Year 2010 11 Ito Ward 1 2 New Delhi Vs Indian Youth Centre Trust Vishwa Yuvak Kendra Circular Road Chanakya Puri New Delhi Aaat 10141 C Assessee By Ms Rano Jain Ms Devina Sharma Adv Mr Ashish Goel Ca Revenue By Sh Arun Kumar Yadav Sr Dr Order Per K Narsimha Chary J M Aggrieved By The Order Dated 15 09 2014 In Appeal N O 242 2013 14 Revenue Preferred This Appeal On The Fo Llowing Grounds 1 On The Facts And In The Circumstances Of The Case And In Law The Ld Cit A Has Erred In Allowing The Benefit Of Exempti On U S 11 12 Of The Income Tax Act 1961 Ignoring That The Activitie S Of The Trust Were Not Within The Purview Of Section 2 15 Of The Inco Me Tax Act 1961 2 On The Facts And In The Circumstances Of The Case And In Law The Ld Cit A Has Erred In Directing The Ao To Allow Benef Its Of Section 11 12 Of The It Act Ignoring This Fact That The Assessee Was Involved In Business Activity During The Year Under Consideratio N 3 On The Facts And In The Circumstances Of The Case And In Law The Ld Cit A Has Erred In Allowing The Claim Of Deprecia Tion To The Assessee On The Fixed Assets Which Were Claimed As Applicatio N Of Income In Earlier Years Date Of Hearing 19 12 2017 Date Of Pronouncement 22 12 2017 Ita No 1625 Del 2015 2 4 On The Facts And In The Circumstances Of The Case And In Law The Ld Cit A Has Erred In Allowing The Claim Of Deprecia Tion Of Rs 32 95 848 To The Assessee Ignoring The Recent Judg Ment Of The Jurisdictional High Court In The Case Of Charanjiv Charitable Trust Vs Dit E In Ita No 321 322 And 323 2013 Dated 18 03 2014 Wherein The Honble Court Has Held That The Tribunal Was Not Justified In Directing The Allowance Of Depreciatio N In Respect Of Such Assets 5 The Appellant Craves Leave To Add To Alter Or Amend Any Ground Of Appeal Raised Above At The Time Of Hearing 2 Briefly Stated Facts Relevant For The Purpose Of T He Appeal Are That The Assessee Is A Charitable Trust And Is Regi Stered As Per Trust Deed Dated 10 08 1961 The Trust Is Registered U S 12 Aa 1 Dated 15 05 1974 And Also U S 80 G Dated 02 12 2009 The Trust Was Founded With The Object Of Charitable Work Of Promo Ting The Welfare With Youth Etc The Assessee Has Been Doing The Ch Aritable Work Of Promoting The Welfare And Cause Of The Youth And Is Having Hostels Dormitory Cafeteria And Conference Hall Etc And I S Earning Income From Them And Also Earning The Rental Income The Assessee Is Having A Center In Chanakyapuri In Delhi And In Calcutta The Assessee Has Been Enjoying The Exemption U S 11 1 But The Same Was Denied During The Ay 2009 10 Mainly On The Ground That The Assess Ee Was Involved In Business Activities But The Appeal Of The Asse Ssee Was Allowed By The Ld Cit A Vide The Appellate Order Dated 31 08 2012 In Appeal No 370 2011 12 The Department Had Referred Appeal Ag Ainst The Order Of The Ld Cit A But The Same Was Dismissed By Th E A Coordinate Bench Of This Tribunal Vide The Appellate Order Dat Ed 23 08 2013 In Ita No 5502 Del 2012 The Ao Has Again Denied The Exemption U S 11 1 To The Assessee During The Current Ay 2010 11 Following The Order Of The Earlier Ay 2009 10 As Above Mainly On The Ground That The Assessee Is Involved In Business Activity Vide The Order Of The Ao In The Appeal While Following The Order Of The Tribuna L In Ita No 5502 Del 2012 In Assessees Own Case For The Ay 200 9 10 The Ld Cit A Held That The Assessee Is Involved In The Chari Table Work Of Ita No 1625 Del 2015 3 Promoting The Welfare And Cause Of The Youth And Al Lowed Exemption U S 11 1 Of The Act To The Assessee Hence The R Evenue Is In This Appeal Before Us 3 Ld Dr Contended That The Ld Cit A Has Commit Ted An Error In Allowing The Benefit Of Exemption U S 11 12 Of The Act By Ignoring The Activities Of The Trust Which Were Not Within T He Purview Of Section 2 15 Of The Act And He Also Failed To Take Note Th At The Assessee Was Involved In Business Activities It Is Further Con Tended That In View Of The Judgment Of The Jurisdictional High Court In Ch Iranjiv Charitable Trust Vs Dit E In Ita N 321 322 And 323 2013 D Ated 18 09 2014 The Assessee Is Not Entitled To Claim The Depreciat Ion In Respect Of Assets Per Contra It Is The Argument On Behalf O F The Assessee That The Issue Of The Entitlement Of The Assessee To The Benefit Of Exemption U S 11 12 Of The Act Was Considered At Length By The Tribunal In Assessees Own Case For The Assessment Years 2009 1 0 2011 12 In Ita Nos 5502 Del 2012 And Ita No 3635 Del 2015 An D The Honble High Court In Ita No 867 To 869 Del 2016 Confirmed The Same Further The Issue Of Depreciation Was Considered By The Itat In Ita 3635 Del 2015 For The Ay 2011 12 And While Following The Decision Of The Honble High Court In Dit E Vs Indraprastha C Ancer Society 2015 229 Taxman 93 Del And After Considering Th E Facts And Circumstances Of The Case And Case Law On This Aspe Ct Found That The Assessee Is Entitled To Claim Depreciation On The F Ixed Assets Which Were Claimed As Application Of Income In Earlier Ye Ars It Is Therefore Submitted On Behalf Of The Assessee That There Are No Sufficient Grounds To Interfere With The Order Of The Ld Cit A 4 We Have Perused The Material Papers On Record I N The Light Of The Decisions Relied Upon By The Assessee Ld Cit A Vide Paragraph No 3 1 Recorded A Finding That When The Ld Cit A He Ld That The Assessee Is Entitled To The Benefit Of Exemption U S 11 12 Of The Income Tax Ita No 1625 Del 2015 4 Act 1961 For The Ay 2009 10 Department Preferred An Appeal Before The Tribunal In Ita No 5502 Del 2012 And Such An A Ppeal Was Dismissed By The Tribunal By Way Of Order Dated 23 08 2013 Order Dated 23 05 2016 In Ita No 3635 Del 2015 For The A Y 2011 12 Also Shows That It Was Held Therein That The Assessee Is Entitled To The Benefit Of The Exemption U S 11 12 Of The Act Fu Rther By Way Of Order Dated 14 12 2016 Of The Honble High Court In Ita 867 To 869 Del 2016 The Honble High Court Held That The Decision Of The Itat Is Sound In Law And Facts And No Substantial Q Uestion Of Law Arises 5 Further While Following The Decision Of Jurisdic Tional High Court In Dit E Vs Indraprastha Cancer Society Supra This Tribunal Held In Ita No 3635 Del 2015 For The Ay 2011 12 That T He Assessee Is Entitled To Claim Depreciation On The Fixed Assets W Hich Were Claimed On Application Of Income In Earlier Years Nothing Contrary Is Brought On Record By The Revenue To Disturb The Findings Of The Tribunal In Assessees Own Case For The Assessment Years 2009 1 0 2011 12 On The Aspect Of Entitlement Of The Assessee To Benefi T U S 11 12 Of The Act And Also To Claim Depreciation On Fixed Assets W Hich Were Claimed As Application Of Income In Earlier Years We The Refore While Respectfully Following The Same Find That There Ar E No Grounds To Interfere With The Impugned Order Or To Sustain The Additions Made By The Ao In The Assessment Order The Appeal Of The Revenue Is Liable To Be Dismissed And We Dismiss The Same 6 In The Result The Appeal Of The Revenue Is Dism Issed Order Pronounced In The Open Court On 22 12 2017 Sd Sd N K Saini K Narsimha Chary Accountant Member Judicial Memb Er Dated 22 12 2017 Kavita Arora Ita No 1625 Del 2015 5 Copy Forwarded To 1 Appellant 2 Respondent 3 Cit 4 Cit Appeals 5 Dr Itat True Copy Assistant Registrar Itat New Delhi