SANGIT KALA KENDRA,MUMBAI vs. ITO, MUMBAI

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ITA 2714/MUM/2023Status: DisposedITAT Mumbai05 December 2023AY 2016-177 pages

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

AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that there was no double deduction. The assessee had not claimed the portion of the asset cost funded by accumulated income as an application of income, but rather claimed depreciation on the remaining balance. Therefore, the depreciation claim was valid.

What were the facts?

The assessee, a charitable trust, claimed depreciation on assets acquired using accumulated income. The Assessing Officer disallowed the depreciation, viewing it as a double deduction since part of the asset's cost was funded by accumulated income. The CIT(A) confirmed this disallowance.

What were the issues?

Whether a charitable trust can claim depreciation on assets where the cost is partly funded by accumulated income, without it constituting a double deduction.

Which sections of the Income-tax Act were involved?

Section 11,Section 12A,Section 143(2),Section 143(3)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “G” BENCH, MUMBAI

For Appellant: Shri Sunil Hirawat, AR
For Respondent: Shri Dr. Kishor Dhule, CIT DR
Hearing: 04.12.2023Pronounced: 05.12.2023
1.

This appeal is filed by Sangeet kala Kendra, a charitable trust against appellate order passed by the National faceless appeal Centre, New Delhi (the learned CIT – A) for assessment year 2016 – 17 on 14/6/2023, wherein appeal filed by the assessee against the assessment order passed by The Income Tax Officer, exemptions (2) (3), Mumbai, (the learned AO) dated 12/12/2018 is partly allowed.

3.

In the result, appeal of the assessee is allowed.

Order pronounced in the open court on 5.12.2023.

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