The Commissioner Of Income Tax, Coimbatore v. M/S.coimbatore Welfare Association

In the High Court of Judicature at Madras Coram : The Honourable Mr.Justice T.S.SIVAGNANAM and The Honourable Mr.Justice N.SATHISH KUMAR Tax Case Appeal No.522 of 2013 The Commissioner of Income Tax, Coimbatore Vs ...Appellant M/s.Coimbatore Welfare Association, Coimbatore-2 ...Respondent APPEAL under Section 260A of the Income Tax Act, 1961against the order dated 22.2.2013 in ITA No.1773/Mds/2012 on thefile of the Income Tax Appellate Tribunal Madras 'C' Bench forthe assessment year 2009-10,against the order of the AdditionalCommissioner of Income Tax Range-1, Coimbatore, dated 1/12/2011made in PAN for the Assessment year 2009-2010 againstthe order of the Commissioner of Income Tax (Appeals)-1,Coimbatore dated 02/07/2012 made in Appeal No.165/11-12. For Appellant : Mr.T.R.Senthilkumar, SSC For Respondent :Mr.S.Sridhar Judgment was delivered by T.S.SIVAGNANAM,J Heard the learned Standing Counsel for the appellant. 2. This appeal by the Revenue challenges the order passed bythe Income Tax Appellate Tribunal, which decided the issue infavour of the assessee. The appeal was admitted on 19.8.2013 onthe following substantial questions of law : https://hcservices.ecourts.gov.in/hcservices/ (2) holding that depreciation is allowable asapplication of income on charitableobjects ? ii. Whether, on facts and in thecircumstances of the case, the Tribunal wasright in holding that the assessee isentitled to claim depreciation on the assetsin the form of application of income eventhough cost of purchase of asset was treatedas application of income under Section 11?and iii. Whether in law and in the factsand circumstances of the case, the Tribunalis right in holding that allowing thedepreciation claim of the assessee would notresult in double deduction, though theentire cost of depreciable assets havealready been allowed as application ofincome towards objects of the trust? ” 3. The Revenue seeks to withdraw this appeal on account oflow tax effect in terms of Circular No.3 of 2018 dated 11.7.2018issued by the Central Board of Direct Taxes. 4. In the light of the above, the appeal is dismissed aswithdrawn and the substantial questions of law framed are leftopen. In the event the tax effect is above the threshold limitfixed in the said circular under exceptional clauses mentionedin the circular, liberty is granted to the Revenue to make amention to this Court to restore the appeal to be heard anddecided on merits. No costs. Sd/- Assistant Registrar(CO) //True Copy// Sub Assistant Registrar To 1.The Income Tax Appellate Tribunal, Madras 'C' Bench. Madras 'C' Bench. 2.The Additional Commissioner of Income Tax Range-1, 63, Race Course Road, Coimbatore 641 018. 63, Race Course Road, Coimbatore 641 018. 3.The Commissioner of Income Tax (Appeal-I), Coimbatore. Coimbatore. +1cc to Mr.S.Sridhar, Advocate Sr.366 +1cc to Mr.T.R.Senthilkumar, Advocate Sr.217 nm[co]srg 04/02/2019 TCA.No.522 of 2013