2013 (11) TMI 1781 - AT - Income Tax

Summary

Issues Involved:
The appeal filed by the Revenue is time-barred by 12 days. The main issue revolves around the claim of depreciation by a society registered as a Charitable Trust under section 12A of the Income Tax Act. The Assessing Officer disallowed the claim of depreciation based on a circular of CBDT and a judgment of the Hon'ble Kerala High Court. The appeal before the Tribunal concerns the allowance of depreciation as claimed by the assessee trust.

Delay Condonation Issue:
The appeal filed by the Revenue was time-barred by 12 days, and the Department filed a condonation petition to condone the delay of 09 days. The reason cited for the delay was the misplacement of miscellaneous records of the case. The delay was ultimately condoned, and the appeal was admitted for hearing with no objection from the counsel for the assessee.

Depreciation Claim Issue:
The case involved a Charitable Trust claiming depreciation on assets as part of income exemption under section 11 of the Income Tax Act. The Assessing Officer disallowed the claim based on a circular of CBDT and a judgment of the Hon'ble Kerala High Court. However, the CIT(Appeals) directed the Assessing Officer to allow the depreciation claim following decisions of the Chennai ITAT and other relevant case laws. The Tribunal upheld the CIT(Appeals) decision, citing precedents and legal principles supporting the allowance of depreciation for charitable trusts. The Revenue's appeal was dismissed based on the Tribunal's findings and acceptance of the decision by both parties.

Conclusion:
The Tribunal upheld the CIT(Appeals) decision to allow the depreciation claim of the Charitable Trust, dismissing the Revenue's appeal. The decision was based on legal precedents and interpretations supporting the deduction of depreciation for income calculation purposes in the context of charitable trusts. The order was pronounced in an open court session in Chennai on November 20, 2013.