Commissioner Of Incometax-(Exemptions v. Lakshmipat Singhaniaeducation Foundation

$~7 *IN THE HIGH COURT OF DELHI AT NEW DELHI +ITA 393/2017 COMMISSIONER OF INCOMETAX-(EXEMPTIONS)..... AppellantThrough:Mr.Zoheb Hossain, Senior StandingCounsel for Revenue. Versus LAKSHMIPAT SINGHANIAEDUCATION FOUNDATION ..... Respondent Through:Mr. V.P. Gupta, Advocate. CORAM:JUSTICE S.MURALIDHARJUSTICE PRATHIBA M. SINGH O R D E R24.07.2017 % 1. Pursuant to the order passed by this Court on 12[th]May, 2017, learnedSenior Standing Counsel has produced a letter dated 17[th]May, 2017 writtento him by the Assistant Commissioner of Income Tax (Exemptions) statingthat the present appeal should be pursued in view of para 4 of the CircularNo.21/2015 dated 10[th]December, 2015 which inter alia states “.....In casewhere returned loss is reduced or assessed as income, the tax effect wouldinclude notional tax on disputed additions.” It is pointed out that eventhough the assessment for Assessment Year (AY) 2012-13 was completed at‘nil’, the notional tax effect was calculated as Rs. 20,74,973 on the disputedaddition of Rs.67,15,352/- on account of depreciation. 2. A perusal of the assessment order dated 29[th]December, 2014 passed by the Assessing Officer in the present case reveals that the application ofincome of the Respondent –Assessee in the AY in question was far in excessof its income. The application of income was Rs.28,26,29,138 whereas hisincomewasRs.18,67,77,966.Thiswasevenafterdisallowingthedepreciation of Rs.67,15,352. Consequently, even if the Revenue were tosucceed on issue of disallowance of depreciation, the net effect would stillremain the same i.e. the application of income of the Assessee would be farin excess of its actual income and therefore, it would not be required to payany tax whatsoever. 3. Consequently, the tax effect being nil, the question of entertaining thisappeal does not arise. 4. Accordingly, this appeal is dismissed as withdrawn in terms of theaforementioned Circular No.21/2015 dated 10[th]December, 2015. S.MURALIDHAR, J JULY 24, 2017j PRATHIBA M. SINGH, J