ACIT.CIRCLE-1, RANCHI vs. MOHINI DEVI CHARITABLE TRUST, VARANASI

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ITA 360/RAN/2018Status: DisposedITAT Ranchi18 October 2023AY 2013-143 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that the assessee is entitled to depreciation. It followed the Supreme Court's decision in Rajasthan & Gujarati Charitable Foundation Poona, finding no error in the CIT(Appeals)'s order.

What were the facts?

The assessee, a charitable institution registered under section 12AA, claimed depreciation on capital assets. The Assessing Officer disallowed this claim, stating that the expenditure was already applied upon acquisition. This was for an assessment year prior to the amendment in Section 11(1) of the Income Tax Act.

What were the issues?

Whether a charitable institution registered under Section 12AA is entitled to claim depreciation on capital assets for an assessment year prior to the amendment of Section 11(1).

Which sections of the Income-tax Act were involved?

Section 12AA,Section 11(1)

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Income Tax Appellate Tribunal, KOLKATA-RANCHI ‘e-COURT’, KOLKATA

Before: Shri Rajpal Yadav, Vice-(KZ) & Shri Rajesh Kumar

Per Rajpal Yadav, Vice-President (KZ):- The present appeal is directed at the instance of Revenue against the order of ld. Commissioner of Income

1.

Assessment Year: 2013-2014 Mohini Devi Charitable Trust Tax (Appeals)-3, Patna dated 17th September, 2018 passed for A.Y. 2013-14.

2.

Though the Revenue has taken four grounds of appeal, but the only issue involved in the appeal is whether assessee is entitled for depreciation amounting to Rs.1,32,68,744/-.

3. With the assistance of ld. Representatives, we have gone through the record carefully. A perusal of the record would suggest that the assessee is a Charitable Institution duly registered under section 12AA of the Income Tax Act. It has claimed depreciation, which was disallowed to it by the ld. Assessing Officer on the ground that the assessee has already applied the expenditure incurred for purchase of capital asset on their acquisition, therefore, it is not entitled for depreciation again. However, this year is prior to the amendment made in section 11(1) of the Income Tax Act. The ld. CIT(Appeals) has rightly followed the decision of the Hon’ble Supreme Court in the case of Rajasthan & Gujarati Charitable Foundation Poona, reported in (2018) 300 CTR 1 (SC)/ 89 taxmann.com 127. After considering the reasoned finding of the ld. CIT(Appeals), we do not find any error in it.

Assessment Year: 2013-2014 Mohini Devi Charitable Trust 4. In the result, the appeal of the Revenue is dismissed. Order pronounced in the open Court on 18.10.2023.

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