The Commissioner Of Income Tax, Coimbatore v. M/S.swami Satchidanandam Foundation, Coimbatore-6

In the High Court of Judicature at Madras The Honourable Mr.Justice T.S.SIVAGNANAM and The Honourable Mr.Justice N.SATHISH KUMAR The Commissioner of Income Tax, Coimbatore ...Appellant Vs M/s.Swami Satchidanandam Foundation, Coimbatore-6...Respondent APPEAL under Section 260A of the Income Tax Act, 1961against the order dated 28.1.2013 in ITA No.1956/Mds/2012 on thefile of the Income Tax Appellate Tribunal Madras 'A' Bench forthe assessment year 2009-10. Appeal against the order of theCommissioner of Income Tax (appeals) I, Coimbatore dated 6.8.12in ITA 135/11-12 for the Assessment year 2009-10 against theorder of the Additional Commissioner of Income Tax Range I 63,Race Course Road, Coimbatore -18 for PAN No.AAATSS138F. For Appellant : Mr.J.Narayanasamy, SSCFor Respondent :Mr.S.Sridhar Judgment was delivered by T.S.SIVAGNANAM,JHeard the learned Standing Counsel for the appellant. 2. This appeal by the Revenue challenges the order passedby the Income Tax Appellate Tribunal, which decided the issue infavour of the assessee. The appeal was admitted on 01.9.2014 onthe following substantial questions of law :“i. Whether, in law and in the factsand circumstances of the case, the IncomeTax Appellate Tribunal was right in holdingthatdepreciationisallowableasapplication of income on charitableobjects ? https://hcservices.ecourts.gov.in/hcservices/ ii. Whether, on facts and in thecircumstances of the case, the Income TaxAppellate Tribunal was right in holding thatthe assessee is entitled to claimdepreciation on the assets, in the form ofapplication of income, even though cost ofpurchase of asset was treated as applicationof income under Section 11 ? and iii. Whether, in law and in the factsand circumstances of the case, the IncomeTax Appellate Tribunal was right in holdingthat allowing the depreciation claim of theassessee would not result in doublededuction, though the entire cost of thedepreciation assets have already beenallowed as application of income towardsobjects 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(CS-III) //True copy// Sub Assistant Registrar RS To 1.The Income Tax Appellate Tribunal, Madras 'A' Bench, Chennai. 2. The Commissioner of Income Tax, (Appeals) I, Coimbatore. 3. The Additional Commissioner of Income Tax, Range I, 63 Race Course Road, Coimbatore -18. 63 Race Course Road, Coimbatore -18. +1cc to Mr.J.Narayanaswamy, Advocate SR.No.147 +1cc to Mr.S.Sridhar, Advocate SR.No.365 KS(CO)GMY(01/02/2019) TCA.No.508 of 2014