The Commissioner Of Income Tax,Coimbatore v. M/S. Little Flower Education Society,Ramalinga Nagar,Sai Baba Colony,Coimbatore - 641 011

IN THE HIGH COURT OF JUDICATURE AT MADRAS DATE: 31.03.2021 CORAM: THE HON'BLE MR. JUSTICE M.DURAISWAMYAND THE HON'BLE MRS.JUSTICE T.V.THAMILSELVI T.C.A.No. 231 of 2014 The Commissioner of Income Tax,Coimbatore. ... Appellant Vs. M/s. Little Flower Education Society,Ramalinga Nagar,Sai Baba Colony,Coimbatore - 641 011. ... Respondent Appeal preferred under Section 260A of the Income Tax Act,1961, against the order of the Income Tax Appellate Tribunal,Madras, "D" Bench, dated 06.11.2013 in I.T.A.No.400/Mds/2013 forthe Assessment Year 2009-2010. Against the Commissioner ofIncome Tax (aPPealS)-I, Coimbatore dated 17/12/2012 in AppealNo.279/2011-12, PAN No.AAATL1342 E in Assessment year 2009-2010against the Additional Commissioner of Income Tax Range-I63,Race Course Road, Coimbatore-18, dated 23.12.2011 in PANNO.AAATL1342 E IN Assessment year 2009-2010. For Appellant : Mr.J. Narayanaswami Senior Standing Counsel For Respondent : Mr. M. Kaushik JUDGMENT (Judgment was delivered by M. DURAISWAMY, J.) Challenging the order passed in I.T.A.No.400/Mds/2013 inrespect of the Assessment Year 2009-2010 on the file of theIncome Tax Appellate Tribunal, Chennai,"D" Bench (for brevity,the Tribunal), the Revenue has filed the above appeal. 2. The above appeal was admitted on the followingsubstantial questions of law: https://hcservices.ecourts.gov.in/hcservices/ “ (i) Whether in law on the facts andcircumstances of the case, the Income TaxAppellate Tribunal was right in holding thatdepreciation is allowable as application ofincome on charitable objects? (ii) Whether on the facts and in thecircumstances of the case, the Income TaxAppellate Tribunal was right in holding that theassessee is entitled to claim depreciation onthe assets, in the form of application of income,even though cost of purchase of asset was treatedas application of income under section 11 of theIncome Tax Act? (iii) Whether on the facts and in thecircumstances of the case, the Income TaxAppellate Tribunal was right in holding thatallowing the depreciation claim of the assesseewould not result in double deduction, though theentire costs of the depreciable assets havealready been allowed as as application of incometowards objects of the trust?" 3. .When the appeal is e taken up for hearing,Mr.J.Narayanasamy, learned Senior Standing Counsel appearing forthe appellant-revenue fairly submitted that the substantialquestions of law raised in the above appeal are covered againstthe revenue by a decision of this Bench dated 17.03.2021 madein T.C.A.Nos.405 & 406 of 2011 [The Commissioner of Income Tax –1, Coimbatore v. M/s. Coimbatore Stock Exchange Ltd.,Coimbatore], which reads as follows:- "............ 2.The above appeals were admittedon the following substantial question of law:“Whether on the facts and in thecircumstances of the case, the Income TaxAppellate Tribunal was right in law in holdingthat depreciation claimed by the assessee, who isclaiming exemption under Section 11 of the Act isallowable on the fixed asset (the cost of thecapital asset) acquired for charitable purposesas if so allowed it would amount to doublededuction, which cannot be the intention of thelegislature?” 3.When the appeals are taken up for hearing,Mr.J.Narayanasamy, learned senior standingcounsel appearing for the appellant – Revenuefairly submitted the substantial questions of lawwhich has been framed in these appeals, have been "............ 2.The above appeals were admittedon the following substantial question of law:“Whether on the facts and in thecircumstances of the case, the Income TaxAppellate Tribunal was right in law in holdingthat depreciation claimed by the assessee, who isclaiming exemption under Section 11 of the Act isallowable on the fixed asset (the cost of thecapital asset) acquired for charitable purposesas if so allowed it would amount to doublededuction, which cannot be the intention of thelegislature?” 3.When the appeals are taken up for hearing,Mr.J.Narayanasamy, learned senior standingcounsel appearing for the appellant – Revenuefairly submitted the substantial questions of lawwhich has been framed in these appeals, have been answered against the Revenue by the Hon'bleSupreme Court in CIT Vs. Rajasthan and GujaratiCharitable Foundation reported in [2018] 402 ITR441 (SC). Further, the learned Senior StandingCounsel submitted that following the judgment ofthe Hon'ble Supreme Court, this Bench, by itsjudgment dated 26.02.2021 in T.C.A.Nos.343 to 345& 347 of 2014 [Commissioner of Income Tax, TrichyVs. M/s.National College Council, Teppakulam,Tiruchirapalli – 620 002] and the Hon'bleDivision Bench in its judgment dated 26.08.2019in T.C.A.Nos.680 & 681 of 2011 [Commissioner ofIncome Tax – I, Tiruchirapalli Vs. M/s.NationalCollege Council, P.B.No.369, Chatram Bus Stand,Teppakulam, Tiruchirapalli – 620 002] dismissedthe appeals and answered the substantialquestions of law against the Revenue. 4.Following the judgment of the Hon'bleSupreme Court reported in [2018] 402 ITR 441 (SC)and the judgments of the Division Bench of thisCourt made in T.C.A.Nos.343 to 345 & 347 of 2014and T.C.A.Nos.680 & 681 of 2011, the substantialquestion of law is answered against the revenueand the appeals are dismissed. No costs. 4.Mr. M. Kaushik, learned counsel appearing for therespondent submitted that in view of the Judgment dated17.03.2021 made in T.C.A.Nos.405 & 406 of 2011, the questionsof law may be decided against the revenue and the appeal may bedismissed. 5. In view of the submissions made by the learned counselon either side, following the ratio laid down in T.C.A.Nos.405& 406 of 2011 , the questions of law are answered against theRevenue and the Tax Case Appeal is dismissed. No costs. Sd/- Assistant Registrar //True Copy// Rj Sub Assistant Registrar 1)The Income Tax Appellate Tribunal, Chennai, "D" Bench https://hcservices.ecourts.gov.in/hcservices/ 2) The Commissioner of Income Tax(Appeals)-I, Coimbatore. Coimbatore. 3) The Additional Commissioner of Income Tax Range-I, Coimbatore-18. Range-I, Coimbatore-18. +1 cc to M/s.S.Sridhar,Advocate Sr No.21002 VSN-II(CO) RG.28.04.2021(4P/5C) T.C.A.No. 231 of 2014 31.03.2021