DCIT EXEMPTIONS, COIMBATORE vs. P.S.GOVINDASWAMY NAIDU & SONS CHARITIES, COIMBATORE

ITA 3000/CHNY/2017Status: DisposedITAT Chennai22 May 2018AY 2013-143 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 held that the issue is settled in favour of the assessee by the Hon'ble Apex Court. Therefore, the Revenue's appeal was dismissed.

What were the facts?

The Assessing Officer denied depreciation on capital expenditure, considering it as application of income, to avoid double deduction. The CIT(A) allowed the assessee's claim based on a jurisdictional High Court decision.

What were the issues?

Whether depreciation can be claimed on capital expenditure when the entire cost has already been claimed as application of income towards trust objects, leading to a potential double deduction.

AI-generated summary — verify with the full judgment below

Cases cited in this judgment(2)Show list

Detected automatically from the text. Citations are also linked where they appear in the judgment. The count shows how many other judgments on BharatTax rely on the same authority.

Lissie Medical Institutions v. CIT
348 ITR 344 · 2012 · HC · Read judgment
164 citing
Chennai v. Medical Trust of the Seventh Day Adventists
84 Taxmann.com 202 · 2017 · HC
14 citing

Income Tax Appellate Tribunal, ‘D’ BENCH: CHENNAI

Before: SHRI GEORGE MATHAN & SHRI S. JAYARAMAN

Department by : Mrs.Sumathi Venkataraman, JCIT Assessee by : None : 22.05.2018 सुनवाई क+ तार�ख/Date of Hearing घोषणा क+ तार�ख / : 22.05.2018 Date of Pronouncement आदेश / O R D E R

PER S. JAYARAMAN, ACCOUNTANT MEMBER:

The Revenue filed this appeal against the order of the CIT(A)-2, Coimbatore, in dated 30.08.2017 for the AY 2013-14.

The Revenue filed this appeal with 3 days delay with condonation petition explaining the reasons for delay. None appeared for the assessee though the notice for hearing was served on the assessee on 21.04.2018. In these circumstances, we heard the Ld.DR and condoned the delay.

While making the assessment for the AY 2013-14 in the case of the assessee, M/s. P.S.Govindaswamy Naidu & Sons Charities, the AO relying on the decision of the Hon’ble Kerala High Court in the case of Lissie Medical Institutions Vs. CIT 348 ITR 344 (Ker.) read with CBDT Circular refused to allow the assessee’s claim of depreciation on the capital expenditure incurred from year to year holding that when the entire costs of assets have already been claimed as application of income towards objects of the Trust, the claim of depreciation on the cost of the very same assets results in double deduction.

3. Aggrieved, the assessee filed the appeal before the Ld.CIT(A). Relying on the Hon’ble Jurisdictional High Court’s decision in the case of DIT Vs. M/s.Medical Trust of the Seventh Day Adventists in TCA No.844 of 2010 dated 08.08.2017 reported in (2017) 84 taxmann.com 202 (Madras), the Ld.CIT(A) allowed the assessee’s appeal.

Aggrieved, the Revenue filed this appeal.

None appeared for the assessee though the notice for hearing was served on the assessee on 21.04.2018. However, the assessee filed its Written Submission. The Ld.DR presented the case on the lines of the grounds of appeal.

We heard the submissions.

We find that this issue is settled in favour of the assessee by the Hon’ble Apex Court in the case of CIT Vs. Rajasthan and Gujarati Charitable Foundation, Poona, in Civil Appeal No.7186 of 2014 dated 13.12.2017, and hence the Revenue’s appeal is dismissed.

In the result, the appeal filed by the Revenue in is dismissed.

Order pronounced in the Open Court on May 22, 2018, at Chennai.

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