Commissioner Of Income Tax( ... vs M/S Srinivasa Trust
2021 Latest Caselaw 1249 Kant

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     IN THE HIGH COURT OF KARNATAKA AT BENGALURU

       DATED THIS THE 20TH DAY OF JANUARY 2021

                         PRESENT

         THE HON'BLE MR. JUSTICE ALOK ARADHE

                               AND

     THE HON'BLE MR. JUSTICE NATARAJ RANGASWAMY

                  I.T.A. NO.80 OF 2016

BETWEEN:

1.     COMMISSIONER OF INCOME TAX
       (EXEMPTIONS), C.R. BUILDINGS
       QUEENS ROAD, BANGALORE-560001.

2.     ASSISTANT DIRECTOR OF INCOME TAX
       (EXEMPTIONS), CIRCLE-17(2)
       BANGALORE.
                                           .... APPELLANTS
(BY MR. SANMATHI E.I. ADV.,)

AND:

M/S. SRINIVASA TRUST
NO.7/21, 1ST CROSS
9TH MAIN, RMV EXTENSION
BANGALORE-560080
PAN:AABTS8147B.
                                           ... RESPONDENT
(BY MR. A. SHANKAR, SR. COUNSEL FOR
    MR. M. LAVA, ADV.,)
                           ---

      THIS I.T.A. IS FILED UNDER SEC. 260-A OF INCOME TAX
ACT 1961, ARISING OUT OF ORDER DATED 07.08.2015 PASSED
IN ITA NO.1552/BANG/2014 FOR THE ASSESSMENT YEAR 2009-
10, PRAYING TO:
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      (i) DECIDE THE FOREGOING QUESTION OF LAW AND/OR
SUCH OTHER QUESTIONS OF LAW AS MAY BE FORMULATED BY
THE HON'BLE COURT AS DEEMED FIT.
      (ii) SET ASIDE THE APPELLATE ORDER DATED 07.08.2015
PASSED BY THE ITAT, 'C' BENCH, BENGALURU IN APPEAL
PROCEEDINGS NO. ITA NO.1552/BANG/2014 FOR ASSESSMENT
YEAR 2009-10, AS SOUGHT FOR IN THIS APPEAL AND TO GRANT
SUCH OTHER RELIEF AS DEEMED FIT, IN THE INTEREST OF
JUSTICE.

     THIS I.T.A. COMING ON FOR HEARING,                      THIS    DAY,
ALOK ARADHE J., DELIVERED THE FOLLOWING:

                           JUDGMENT

Mr.E.I.Sanmathi, learned counsel for the revenue.

Mr.A.Shankar, learned Senior counsel for Mr.M.Lava,

learned counsel for the assessee.

This appeal under Section 260-A of the Income Tax

Act, 1961 (hereinafter referred to as 'the Act', for short) has

been filed by the revenue. The subject matter of the appeal

pertains to the Assessment Year 2009-10. The appeal was

admitted by a Bench of this Court vide order dated

03.10.2017 on the following substantial questions of law:

"1.Whether on the facts and in the circumstances of the case, the Tribunal was correct in holding that the assessee is eligible for claiming depreciation on the asset purchased through application of income?

2. Whether on the facts and in the circumstances of the case, the Tribunal was correct in holding that assessee is eligible to carry forward the deficit to the subsequent years, so that to set off with future year income?"

2. When the matter was taken up today, learned

counsel for the assessee submitted that the first substantial

question of law involved in this appeal has already been

answered against the revenue by a decision of the Supreme

Court in 'CIT Vs. RAJASTHAN & GUJARAT CHARITABLE

FOUNDATION POONA' (2018) 402 ITR 441 (SC) as well

as the decision of this Court in 'DIT Vs. AL-AMEEN

CHARITABLE FUND TRUST' (2016) 383 ITR 517 (KAR).

It is also submitted that the second substantial question of

law has already been answered against the revenue by the

decisions of this Court in 'CIT Vs. OHIO UNIVERSITY

CHRIST COLLEGE' (2018) 408 ITR 352 KAR as well as

'PCIT Vs. MANIPAL ACADEMY OF HIGHER EDUCATION

(2019) 415 ITR 361 (KAR). The aforesaid submission

could not be disputed by the learned counsel for the revenue.

3. For the reasons assigned in the aforementioned

judgments, the substantial questions of law framed in this

appeal are answered against the revenue.

In the result, the appeal fails and is hereby dismissed.

Sd/-

JUDGE

Sd/-

JUDGE

RV