COMMISSIONER OF INCOME TAX-(EXEMPTIONS) vs. VISHWESHRAIYA EDUCATIONAL TRUST

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ITA/697/2017HC DelhiDLHC01223883201713 March 2018Bench: HON'BLE MR. JUSTICE S. RAVINDRA BHAT,HON'BLE MR. JUSTICE A. K. CHAWLA1 pages
AI SummaryDismissed

What did the High Court hold?

The Delhi High Court held that no question of law arises in the present appeal. This decision was based on the development brought to the court's notice by the assessee's counsel, which was not disputed by the Revenue's counsel. The Supreme Court's judgment in Commissioner of Income Tax, Pune v. Rajasthan and Gujarati Charitable Foundation, (2017) 12 TMI 1067 (SC) was cited as the binding precedent that settled the issue in favor of the assessee. The ratio decidendi is that if a matter is conclusively decided by the Supreme Court, a High Court appeal on the same issue, without any distinguishing facts, would not raise a substantial question of law. Consequently, the appeal was dismissed.

What were the facts?

The Commissioner of Income Tax (Exemptions) filed an appeal before the Delhi High Court challenging an order related to the assessment year(s) not specified. The appeal concerned the permissibility of depreciation to a charitable institution registered under Section 10(23C) and Section 12A of the Income Tax Act, 1961. The Revenue was agitating this issue. The respondent/assessee, Vishwesraiya Educational Trust, informed the court that the issue had been decided by the Supreme Court in their favor.

What were the issues?

1. Whether a charitable institution covered by Section 10(23C), read with Section 12A of the Income Tax Act, 1961, is entitled to claim depreciation. Assessee's Contention: The assessee argued that the issue of permissibility of depreciation to a charitable institution covered by Section 10(23C), read with Section 12A of the Income Tax Act, 1961, is now covered against the Revenue by the judgment of the Supreme Court in Commissioner of Income Tax, Pune v. Rajasthan and Gujarati Charitable Foundation, (2017) 12 TMI 1067 (SC). Revenue's Contention: The Revenue's counsel did not dispute the development informed by the assessee's counsel.

Which sections of the Income-tax Act were involved?

Section 10(23C),Section 12A

AI-generated summary — verify with the full judgment below

$~12 * IN THE HIGH COURT OF DELHI AT NEW DELHI

+ ITA 697/2017

COMMISSIONER OF INCOME TAX-(EXEMPTIONS) ..... Appellant Through: Mr. Zoheb Hossain, Sr. Standing Counsel for Revenue with Mr. Deepak Anand, Jr. Standing Counsel for Revenue.

versus

VISHWESHRAIYA EDUCATIONAL TRUST ..... Respondent

Through: Mr. Pranjal Srivastava, Adv.

CORAM: HON'BLE MR. JUSTICE S. RAVINDRA BHAT HON'BLE MR. JUSTICE A. K. CHAWLA

O R D E R %

13.03.2018

Learned counsel for the respondent/assessee informs that the issue with respect to permissibility of depreciation to a charitable institution covered by Section 10(23C), read with Section 12A of the Income Tax Act, 1961, that the Revenue is agitating in this appeal, is now covered against it by the judgment of the Supreme Court in Commissioner of Income Tax, Pune v. Rajasthan and Gujarati Charitable Foundation, (2017) 12 TMI 1067 (SC).

In the light of this development – which is not disputed by the Revenue’s counsel, it is held that no question of law arises. The appeal is consequently dismissed.

S. RAVINDRA BHAT, J

MARCH 13, 2018/kks

A. K. CHAWLA, J

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