ADIT (E), New Delhi v. International Goudiya Vedanta Trust, New Delhi

ITA 2920/DEL/2011 | 2008-2009
Pronouncement Date: 21-12-2011 | Result: Dismissed

Appeal Details

RSA Number 292020114 RSA 2011
Assessee PAN AAATI2455H
Bench Delhi
Appeal Number ITA 2920/DEL/2011
Duration Of Justice 6 month(s) 18 day(s)
Appellant ADIT (E), New Delhi
Respondent International Goudiya Vedanta Trust, New Delhi
Appeal Type Income Tax Appeal
Pronouncement Date 21-12-2011
Appeal Filed By Department
Order Result Dismissed
Bench Allotted C
Tribunal Order Date 21-12-2011
Date Of Final Hearing 21-12-2011
Next Hearing Date 21-12-2011
Assessment Year 2008-2009
Appeal Filed On 03-06-2011
Judgment Text
ITA NO.2920/DEL/2011 1 IN THE INCOME TAX APPELLAT E TRIBUNAL DELHI BENCH C NEW DELHI BEFORE SHRI C.L. SETHI JUDICIAL MEMBER AND SHRI SHAMIM YAHYA ACCOUNTANT MEMBER ITA NO.2920/DEL/2011 ASSTT. YEAR: 2008-09 ASSTT. DIRECTOR OF INCOME TAX(E) VS INTERNATIO NAL GOUDIYA VEDANTA TC-II NEW DELHI. TRUST B-3 BLOCK OCF POCKE T NEAR MUSICAL FOUNTAIN PARK JANAKPURI NEW DELHI-110058 (PAN NO. AAATI2455H) (APPELLANT) (RE SPONDENT) APPELLANT BY: SHRI B.R.R. KUMAR SR. DR RESPONDENT BY: SHRI S.K. KHURANA O R D E R PER C. L. SETHI J.M. THE ONLY GROUND RAISED BY THE REVENUE IN THIS APP EAL DIRECTED AGAINST THE ORDER DATED 11.4.2011 PASSED BY THE LEARNED CIT (A) FOR ASSTT. YEAR 2008-09 IS AS UNDER:- ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE THE LD. CIT(A) HAS ERRED IN ALLOWING DEPRECIATION WHICH THE AO HAD ADDED BACK TO THE TUNE OF RS.31 03 118/- AS THE SAM E WAS ALREADY ALLOWED AS APPLICATION OF INCOME UNDER THE HEAD CAPITAL EXPENDITURE. 2. THE ASSESSEE IS A PUBLIC CHARITABLE TRUST. IT I S REGISTERED U/S 12A(A) OF THE INCOME TAX ACT. ITS INCOME IS ELIGIBLE FOR EXE MPTION U/S 11 OF THE ACT ITA NO.2920/DEL/2011 2 SUBJECT TO THE CONDITIONS SPECIFIED THEREIN. IN TH E INCOME AND EXPENDITURE ACCOUNT SUBMITTED BY THE ASSESSEE THE ASSESSEE CLA IMED DEDUCTION ON ACCOUNT OF DEPRECIATION OF RS.31 03 118/- WHICH HA S BEEN DISALLOWED BY THE ASSESSING OFFICER BY OBSERVING THAT THE SAME IS NOT ALLOWABLE WHILE DETERMINING THE SURPLUS OF THE INCOME OF THE ASSESS EE AFTER CONSIDERING VARIOUS REVENUE EXPENDITURE WITHOUT DEPRECIATION C APITAL EXPENDITURE APPLIED TO THE OBJECTS OF THE TRUST AND THE AMOUNT SET APART U/S 11 SUB- SECTION(2) OF THE ACT. 3. ON APPEAL THE LD. CIT(A) HAS TAKEN THE VIEW THA T IN THE LIGHT OF THE DECISION OF HONBLE PUNJAB & HARYANA HIGH COURT IN THE CASE OF CIT VS M/S TINY TOTS EDUCATION SOCIETY 330 ITR 21(P&H) THE AS SESSEES CLAIM OF DEPRECIATION ON CAPITAL ASSETS IS TO BE ALLOWED AS A DEDUCTION FROM THE TOTAL INCOME OF THE TRUST. 4. HENCE THE REVENUE IS IN APPEAL BEFORE US. 5. WE HAVE HEARD BOTH THE PARTIES AND PERUSED THE M ATERIAL ON RECORD. THE HONBLE PUNJAB & HARYANA HIGH COURT IN THE CASE OF CIT VS TINY TOTS EDUCATION SOCIETY (SUPRA) HAS HELD THAT THE INCOME OF THE ASSESSEE BEING EXEMPT THE ASSESSEE WAS ONLY CLAIMING THAT DEPRECI ATION SHOULD BE REDUCED FROM THE INCOME FOR DETERMINING PERCENTAGE OF FUNDS WHICH HAD TO BE APPLIED FOR THE PURPOSES OF THE TRUST AND AS SUCH IT COULD NOT BE HELD THAT ITA NO.2920/DEL/2011 3 DOUBLE BENEFIT WAS GIVEN IN ALLOWING THE CLAIM FOR DEPRECIATION FOR COMPUTING THE INCOME FOR PURPOSES OF SECTION 11 OF THE ACT. RESPECTFULLY FOLLOWING THE AFORESAID DECISION OF HONBLE PUNJAB & HARYANA HIGH COURT WE UPHOLD THE ORDER OF LD. CIT(A) AND DIRECT THE AO TO ALLOW DEPRECIATION AND REDUCE THE SAME FROM THE INCOME OF THE TRUST FO R DETERMINING THE PERCENTAGE OF FUNDS WHICH HAD TO BE APPLIED FOR THE PURPOSES OF THE TRUST. THE ORDER OF THE LD. CIT(A) IS THUS UPHELD. 6. IN THE RESULT THE APPEAL FILED BY THE REVENUE IS DISMISSED. ORDER WAS PRONOUNCED IN THE OPEN COURT ON 21ST DE CEMBER 2011 IMMEDIATELY AFTER THE HEARING WAS OVER. SD/- SD/- (SHAMIM YAHYA ) ( C.L. SETH I ) ACCOUNTANT MEMBER JUDICIAL MEMBER DT. 21ST DECEMBER 2011 GS COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT (A) 4. CIT 5. DR BY ORDER DY. REGISTRAR ITA NO.2920/DEL/2011 4