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Income Tax Appellate Tribunal, DELHI BENCHES : SMC-1 : NEW DELHI
Before: SHRI R.S. SYAL
IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCHES : SMC-1 : NEW DELHI BEFORE SHRI R.S. SYAL, ACCOUNTANT MEMBER
ITA No.5200/Del/2016 Assessment Year : 2010-11
ITO (E), Vishweshraiya Educational Trust, Ward 2(3), Vs. 115, Pushkar Enclave, Room No.2407, E-2 Block, Paschim Vihar, Dr. SP Mukherjee Civic Centre, Delhi. New Delhi. PAN: AAATV1979P
(Appellant) (Respondent) Assessee By : None Department By : None
Date of Hearing : 24.11.2016 Date of Pronouncement : 24.11.2016 ORDER
This appeal by the assessee relating to the assessment year 2010- 11 arises out of the order passed by the CIT (Appeals) 20.07.2016.
None was present for the assessee as well as the Revenue. I find that pursuant to the mandate of section 268A, the CBDT
ITA No.5200/Del/2016
has issued Circular No. 21 of 2015 dated 10.12.2015 with
retrospective effect, revising the monetary limit to
Rs.10,00,000/- for not filing appeals before the Tribunal. I
further find that as the tax effect involved in the instant appeal
is less than Rs.10,00,000/-, the extant appeal is not
maintainable.
From para 10 of the above Circular it is palpable that the
Instruction is applicable to the pending appeals also with
retrospective effect and there is a clear-cut direction to the
Department to withdraw or not press such appeals filed before
the ITAT wherein tax effect is less than Rs.10,00,000/-. Going
by the prescription of the aforenoted Circular, I am of the view
that the Revenue should have either not filed the instant appeal
before the Tribunal or withdrawn the same as the tax effect in
this appeal is less than the prescribed limit for not filing the
appeals. Ex conseqeunti, I dismiss the instant appeal.
ITA No.5200/Del/2016
Even otherwise, it is noticed that the issue raised in this
appeal about the granting of depreciation in addition to the
allowance for purchase of assets as application, has been
decided by the Hon’ble Delhi High Court in the case of DIT(E)
vs. Indraprastha Cancer Society (2014) 112 DTR 345 (Del),
holding that claim for depreciation shall be allowed as per the
principles relating to commercial accountancy while
computing business income, in addition to the amount spent
on purchase of capital asset being treated as application of
income. It is further observed that the Finance (No.2) Act,
2014 has inserted section 11(6) w.e.f. 1.4.2015 providing that
no depreciation on an asset can be allowed once its purchase
has been treated as application of income. Since the year
under consideration is AY 2010-11, I am satisfied that the case
is not hit by the newly inserted section 11(6). I, therefore,
uphold the impugned order.
ITA No.5200/Del/2016
In the result, the appeal of the Revenue stands dismissed. The decision was pronounced in the open court on 24th November,
2016. Sd/-
[R.S. SYAL] ACCOUNTANT MEMBER Dated, 24.11.2016. dk Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT (A) 5. DR, ITAT AR, ITAT, NEW DELHI.