Commissioner Of Income Tax v. Market Committee, Tohona

IN THE HIGH COURT OF PUNJAB AND HARYANA ATCHANDIGARH. I.T.A. No.186 of 2011 Date of decision: 12.7.2011 Commissioner of Income Tax Vs. Market Committee, Tohona -----Appellant -----Respondent CORAM:- HON'BLE MR. JUSTICE ADARSH KUMAR GOEL ACTING CHIEF JUSTICEHON'BLE MR. JUSTICE AJAY KUMAR MITTAL Present:-Mr. Yogesh Putney, Sr. Standing counselfor the Revenue. ---for the Revenue. --- ADARSH KUMAR GOEL, ACJ This appeal has been preferred by the revenue underSection 260A of the Income Tax Act, 1961 (for short, “the Act”)against the order of Income Tax Appellate Tribunal, Delhi Bench“E”, New Delhi dated 25.6.2010 in I.T.A. No.1335/DEL/2010 forthe assessment year 2007-08 proposing following questions oflaw:- 1. “Whether on the facts and in the circumstances of thecase, the Hon’ble ITAT is justified in allowingdepreciation on the capital assets even when capitalexpenditure on acquisition of the correspondingassets had already been allowed as ‘application ofincome’ for the purpose of allowing exemption undersection 11 of the income-tax Act and as such furtherallowing of depreciation of these capital assets willcase, the Hon’ble ITAT is justified in allowingdepreciation on the capital assets even when capitalexpenditure on acquisition of the correspondingassets had already been allowed as ‘application ofincome’ for the purpose of allowing exemption undersection 11 of the income-tax Act and as such furtherallowing of depreciation of these capital assets will 2. amount to double deduction for the sameexpenditure? Whether allowing of depreciation on the capital assetsby Hon’ble ITAT is justified in the light of the Hon’bleApex Court decision in Escorts India Ltd. (199 ITR43), wherein it has been held that in the absence ofclear statutory indication to the contrary, the statuteshould not be read as to permit an assessee twodeductions on the same expenditure?” Learned counsel for the appellant fairly states that thematter is covered against the revenue by judgment of this Courtdated 5.7.2010 in I.T.A. No.535 of 2009 in CIT v. MarketCommittee, Pipli. Accordingly, this appeal is dismissed. (ADARSH KUMAR GOEL) ACTING CHIEF JUSTICE July 12, 2011ashwani ( AJAY KUMAR MITTAL ) JUDGE