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Income Tax Appellate Tribunal, AHMEDABAD – BENCH ‘B’
Before: SHRI RAJPAL YADAV & SHRI AMARJIT SINGH
आयकर अपील�य अ�धकरण, अहमदाबाद �यायपीठ - अहमदाबाद । IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD – BENCH ‘B’
BEFORE SHRI RAJPAL YADAV, JUDICIAL MEMBER AND SHRI AMARJIT SINGH, ACCOUNTANT MEMBER आयकर अपील सं./ ITA No.170 and 173/Ahd/2018 �नधा�रण वष�/Asstt. Year: 2010-11 and 2014-15
DCIT (Exemptions)-2 Vs. Charotar Education Society Ahmedabad. C/o. D.N. High School Station Road Anand, Gujarat 380 001. PAN : AAATC 1582 H
अपीलाथ�/ (Appellant) �त् यथ�/ (Respondent)
Revenue by : Shri Mudit Nagpal, Sr.DR Assessee by : None सुनवाई क� तार�ख/Date of Hearing : 08/04/2019 घोषणा क� तार�ख /Date of Pronouncement: 10/04/2019 आदेश/O R D E R PER RAJPAL YADAV, JUDICIAL MEMBER:
Present two appeals are directed at the instance of the Revenue against separate orders of the ld.CIT(A)-9 dated 13.11.2017 passed for the Asstt.Years 2010-11 and 2014-15.
Common grievance of the Revenue in both the assessment years relates to allowance of depreciation amounting to Rs.2,04,91,801/- and Rs.2,39,88,849/- in the Asstt.Year 2010-11 and 2014-15 respectively by the ld.CIT(A).
ITA No.170 & 173/Ahd/2018 2 3. In response to the notice of hearing none has come present on behalf of the assessee. The facts on all vital points are common, therefore for the facility of reference we take the facts from the Asstt.Year 2010-11.
Brief facts of the case are that the assessee has filed its return of income at Rs.NIL. The assessment under section 143(3) of the Income Tax Act was completed on 4.9.2010 determining total income at Rs.NIL. The AO thereafter haboured a belief that the assessee has claimed depreciation of Rs.2,04,91,801/- which is not admissible to it. Therefore, he reopened the assessment and notice under section 148 of the Act was issued to the assessee. In response to the show cause notice of the AO, the assessee filed submissions on 28.12.2015. It has contended that amendment in section 11 has been made by Finance Act(No.2) of 2014 w.e.f. Asstt.Year 2015-16. After this amendment, it has been provided that depreciation as well as capital expenditure in the shape of application of income cannot be claimed simultaneously; but upto Asstt.Year 2014-15 both were admissible to an assessee who is an institution engaged in charitable activities and enjoying the benefit of sections 11 and 12. References to a large number of decisions were made by the assessee, but the ld.AO was not satisfied with the explanation of the assessee. He disallowed the claim of depreciation on the ground that the assessee has already availed deduction for the capital expenditure for acquiring such assets as application of income.
Similar view has been taken in the Asstt.Year 2014-15. On appeal, the ld.CIT(A) has deleted this disallowance by following
ITA No.170 & 173/Ahd/2018 3 decisions of judgment of Hon’ble Gujarat High Court in the case of CIT Vs. She4th Manilal Ranchhoddas Vishram Bhavan Trust, 198 ITR 598 (Guj). The ld.DR conceded that in view of latest decision of Hon’ble supreme Court reported in (2018) 402 ITR 441 (SC) in the case of CIT vs. Rajasthan and Gujarati Foundation, assessee trust is entitled for the depreciation.
On due consideration of the above facts, and law laid down by the Hon’ble Supreme Court in the case of Rajasthan & Gujarati Foundation (supra), we do not find any merit in these appeals. They are dismissed.
In the result, appeals of the Revenue are dismissed.
Order pronounced in the Court on 10th April, 2019.
Sd/- Sd/- (AMARJIT SINGH) (RAJPAL YADAV) ACCOUNTANT MEMBER JUDICIAL MEMBER