DCIT EXEMPTIONS, COIMBATORE vs. ERODE SENGUNTHAR EDUCATIONAL TRUST, ERODE

The Revenue filed this appeal against the order of the CIT(A)-Salem, in dated 20.09.2017 for the AY 2012-13.

While making the assessment for the AY 2012-13 in the case of the assessee, M/s. Erode Sengunthar Educational Trust, which is running colleges with hostel under the name & style as ‘Erode Sengunthar Engineering College’, which include the courses of MBA & MCA, 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.

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 23.04.2018. The Ld.DR presented the case on the lines of the grounds of appeal.