ITO, Wd. -6(2),, Pune v. Rajasthani & Gujrati Charitable Foundation Poona Hospital & Research Centre,, Pune

ITA 467/PUN/2010 | 2006-2007
Pronouncement Date: 30-11-2011 | Result: Dismissed

Appeal Details

RSA Number 46724514 RSA 2010
Assessee PAN AAATR1097C
Bench Pune
Appeal Number ITA 467/PUN/2010
Duration Of Justice 1 year(s) 8 month(s) 4 day(s)
Appellant ITO, Wd. -6(2),, Pune
Respondent Rajasthani & Gujrati Charitable Foundation Poona Hospital & Research Centre,, Pune
Appeal Type Income Tax Appeal
Pronouncement Date 30-11-2011
Appeal Filed By Department
Order Result Dismissed
Bench Allotted A
Tribunal Order Date 30-11-2011
Date Of Final Hearing 30-11-2011
Next Hearing Date 30-11-2011
Assessment Year 2006-2007
Appeal Filed On 26-03-2010
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH A PUNE BEFORE SHRI SHAILENDRA KUMAR YADAV JUDICIAL MEMBER AND SHRI D. KARUNAKARA RAO ACCOUNTANT MEMBER I.T.A. NO. 467/PN/2010 : A.Y. 2006-07 I.T.O. WARD 6(2) PUNE APPELLANT VS. RAJASTHANI & GUJARATHI CHARITABLE FOUNDATION POONA HOSPITAL AND RESEARCH CENTRE 27 SADASHIV PETH PUNE-411 030 PAN AAATR 1097 C RESPONDENT APPELLANT BY: NONE RESPONDENT BY: SHRI S.K. AMBASTHA DATE OF HEARING: 30-11-2011 DATE OF PRONOUNCEMENT : 30-11-2011 ORDER PER SHAILENDRA KUMAR YADAV JM THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST THE ORDER OF CIT(A)-III PUNE DATED 23-12-2009 FOR A.Y. 2006-07 ALLOWING THE CLAIM OF DEPRECIATION ON IMMOVABLE PRO PERTY TO THE EXTENT OF RS. 1 08 86 330/- OVER AND ABOVE T HE CAPITAL EXPENDITURE ON THE CONCERNED ASSET CLAIMED BY THE ASSESSEE. 2. THE ASSESSEE IS A REGISTERED PUBLIC CHARITABLE T RUST RUNNING A HOSPITAL. THE ASSESSING OFFICER FOUND THA T THE ASSESSEE HAD DEBITED DEPRECIATION OF RS. 1 08 86 33 0/- ON THREE BUILDINGS IN THE CONSOLIDATED INCOME AND 2 ITA NO. 467PN/2010 RAJASTHANI & GUJARATHI CHARITABLE FOUNDATION POONA HOSPITAL AND RESEARCH CENTRE A.Y. 2006-07 EXPENDITURE ACCOUNT. THE ASSESSING OFFICER OBSERVE D THAT THE CONSTRUCTION COST OF THE BUILDING WAS MET FROM THE CORPUS FUND AND YEARMARKED FUNDS WHICH WERE CONSIDE RED EXEMPT IN THE YEAR OF THE RECEIPT. THUS ACCORDING TO THE ASSESSING OFFICER CLAIM OF DEPRECIATION ON THE ASS ETS ACQUIRED FROM THE EXEMPTED FUNDS AMOUNTED TO DOUBLE BENEFIT OF DEDUCTION. AS SUCH THE ASSESSING OFFIC ER DID NOT CONSIDER THE AMOUNT OF RS. 1 08 86 330/- ON ACC OUNT OF DEPRECIATION AND DISALLOWED THE SAME. IN APPEAL THE CIT(A) DELETED THE ADDITION MADE BY THE ASSESSING O FFICER BY OBSERVING AS UNDER: THE SUBMISSIONS HAVE BEEN CONSIDERED. IT IS SEEN THAT IDENTICAL ISSUE AROSE IN THE CASE OF APPELLANT IN A.Y 2004-05 AND 2005-06 WHEREIN THE LEARNED CIT(A) NEGATIVE THE ACTION OF THE A.O IN DISALLOWING THE DEPRECIATION ON BUILDINGS AFTER OBSERVING THAT THE DECISION OF BOMBAY HIGH COURT IN THE CASE OF CIT VS . INSTITUTE OF BANKING PERSONNEL SECTION 264 ITR 110 IS SQUARELY APPLICABLE WHEREIN IT WAS HELD THAT DEPRECIATION IS STILL ALLOWABLE ON THE ASSETS THE COST OF WHICH WAS FULLY ALLOWED AS APPLICATION OF INCOME IN THE PAST YEARS. IT IS FURTHER SEEN THAT THE ISSUE AT HA ND IS ALSO COVERED IN FAVOUR OF THE APPELLANT BY THE JUDGMENT OF HON'BLE ITAT PUNE BENCH IN THE CASE OF SHRI AGMODHARAK DEVARDHI JAIN AGAM MANDIR TRUST IN ITA NO. 1526/PN/2007ESPECIALLY FOLLOWING THE JUDICI AL HIERARCHY I DELETE THE ADDITION MADE BY THE AO ON ACCOUNT OF DEPRECIATION ON BUILDINGS. 3. THE AFORESAID DECISION OF THE CIT(A) HAS BEEN OP POSED BY THE REVENUE BEFORE US. NONE APPEARED ON BEHALF O F THE ASSESSEE. 4. AFTER HEARING THE LEARNED DR AND PERUSING THE MATERIAL ON RECORD WE FIND THAT THE ISSUE RAISED I N THIS APPEAL IS SQUARELY COVERED BY THE JURISDICTIONAL HI GH COURT 3 ITA NO. 467PN/2010 RAJASTHANI & GUJARATHI CHARITABLE FOUNDATION POONA HOSPITAL AND RESEARCH CENTRE A.Y. 2006-07 DECISION IN THE CASE OF CIT VS. INSTITUTE OF BANKIN G (264 ITR 110) WHEREIN IT HAS BEEN HELD THAT DEPRECIATIO N IS ALLOWABLE ON THE ASSETS THE COST OF WHICH WAS FULL Y ALLOWED AS APPLICATION OF INCOME IN THE PAST YEARS. THE CI T(A) HAS ALSO FOLLOWED THE RATIO LAID DOWN BY THE HONBLE BO MBAY HIGH COURT IN THE CASE OF INSTITUTE OF BANKING (SUP RA). IN THE CIRCUMSTANCES THEREFORE WE DO NOT FIND ANY INF IRMITY IN THE ORDER OF THE CIT(A). THE SAME IS UPHELD. 5. IN THE RESULT THE APPEAL OF THE REVENUE IS DISM ISSED. PRONOUNCED IN THE OPEN ON 30 TH NOVEMBER 2011. S D/ - (D. KARUNAKARA RAO) ACCOUNTANT MEMBER S D/ - SHAILENDRA KUMAR YADAV JUDICIAL MEMBER PUNE DATED THE 30 TH NOVEMBER 2011. ANKAM COPY OF THE ORDER IS FORWARDED TO : 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT III PUNE 4. CIT(A)- III PUNE 5. THE D.R ITAT PUNE BENCH PUNE 6. GUARD FILE BY ORDER SR. PRIVATE SECRETARY INCOME TAX APPELLATE TRIBUNAL PUNE BENCHES PUNE.