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2014 (2) TMI 1224 - AT - Income Tax


Issues:
1. Disallowance of depreciation claimed by a trust under section 12A of the Income Tax Act, 1961.
2. Interpretation of the applicability of section 11 of the Act to depreciation claimed by a trust.
3. Comparison of judgments from different High Courts regarding the claim of depreciation by trusts.
4. Application of precedents to determine the outcome of the appeal.

Analysis:
The appeal before the Appellate Tribunal ITAT MADRAS involved a dispute regarding the disallowance of depreciation claimed by a trust registered under section 12A of the Income Tax Act, 1961 for the Assessment Year 2010-11. The Assessing Officer had disallowed the depreciation, relying on a judgment by the Hon'ble Kerala High Court in a specific case. However, the CIT(Appeals) allowed the appeal of the assessee, citing a different judgment by the Tribunal in the case of M/s. CMS Educational & Charitable Trust, which referred to decisions from the Hon'ble Punjab & Haryana High Court. The CIT(Appeals) applied the ratio from the case of CIT Vs. Vegetable Products Ltd., emphasizing that the claim of depreciation does not result in double deduction, ultimately deciding in favor of the assessee.

The Tribunal noted that the issue raised in the present appeal was already addressed in the earlier order concerning the CMS Educational & Charitable Trust case. By considering the precedents and the application of legal principles from previous judgments, the Tribunal dismissed the appeal of the Revenue, indicating that the claim of depreciation by the trust was justified under the provisions of the Income Tax Act. The order was pronounced in open court on February 13, 2014, at Chennai, by the Judicial Member, Vikas Awasthy.

 

 

 

 

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