THE ACIT,(EXEMPTIONS), CIRCLE-1, AHMEDABAD vs. INSTITUTE FOR PLASMA RESEARCH SOCIETY, GANDHINAGAR

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ITA 4/AHD/2019Status: DisposedITAT Ahmedabad17 August 2021AY 2014-152 pages

In favour of the assessee: the Revenue's appeal was dismissed. From the AI summary of this appeal.

AI SummaryDismissed

What did the Tribunal hold?

The Tribunal upheld the CIT(A)'s deletion of depreciation disallowance, relying on High Court and Supreme Court decisions. Since the depreciation was deleted, the surcharge levied on the income was also rightly deleted.

What were the facts?

The Assessing Officer (AO) disallowed depreciation and later levied surcharge on the assessee's total income. The CIT(A) deleted the disallowance of depreciation and consequently deleted the surcharge.

What were the issues?

Whether the assessee is entitled to depreciation and consequently, whether surcharge is leviable on income after deletion of depreciation.

Which sections of the Income-tax Act were involved?

Section 143(3),Section 154

AI-generated summary — verify with the full judgment below

Cases cited in this judgment(1)Show list

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Income Tax Appellate Tribunal, AHMEDABAD - BENCH ‘A’

Before: SHRI RAJPAL YADAV, VICE- & SHRI WASEEM AHMED

For Respondent: Shri Virendra Ojha, CIT-DR, Shri S.S. Shukla, Sr.DR
Hearing: 13/08/2021Pronounced: 17/08/2021

सुनवाई क� तार�ख/Date of Hearing : 13/08/2021 घोषणा क� तार�ख /Date of Pronouncement: 17/08/2021 आदेश/O R D E R PER RAJPAL YADAV, VICE-PRESIDENT Revenue is in appeal before the Tribunal against order of the ld.CIT(A)-9, Ahmedabad dated 10.10.2018 passed for Asstt.Year 2014- 15. On receipt of notice in the Revenue’s appeal, the assessee has filed cross objection bearing No.145/Ahd/2019.

2.

It emerges out from the record that the ld.AO has passed scrutiny assessment under section 143(3) of the Income Tax Act, 1961 on 10.10.2016 determining taxable income of the assessee at Rs.27,00,89,497/-. The AO has made above addition to the declared income at Rs.NIL by disallowing the claim of deprecation. The AO thereafter issued a notice under section 154 contending therein that CO 2 surcharge was to be calculated and charged, because total income exceeded Rs.1 crores, and accordingly, he levied surcharge of Rs.1,09,10,000/-by way of an order passed under section 154 on 3.10.2017. On appeal, the CIT(A) has deleted this levy of surcharge by observing that income of the assessee was reduced to NIL after giving effect to the order of the CIT(A), and therefore no surcharge is leviable.

3.

On due consideration of the above facts and circumstances, we find that disallowance of depreciation has been deleted on merit by the ld.CIT(A) by following decision of Hon’ble Gujarat High Court in the case of CIT Vs. Sheth Manilal Ranchhoddas Vishram Bhavan Trust, 198 ITR 598 (Guj). This order of the CIT(A) has been upheld by the Tribunal in and others, wherein the Tribunal after putting reliance upon the decision of Hon’ble Supreme Court in the case of Escort Ltd. Union of India, (1993) ITR 43 (SC) has held that the assessee is entitled for deprecation. The appeal of the Revenue was dismissed by the Tribunal vide its order dated 28.11.2019. Since the quantum has already been deleted, therefore, nothing remained for levy of surcharge. The ld.CIT(A) has rightly deleted the levy of surcharge and we do not find any merit in the appeal of the Revenue.

4.

So far as CO is concerned, it has not pleaded as to how it is aggrieved with any part of the CIT(A)’s order. The respondent can file CO under section 253(4), if he has aggrieved against any part of the order impugned in the appeal. No such thing has been demonstrated in the CO. Therefore, CO filed by the assessee is dismissed.

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