Madras High Court
Commissioner Of Income Tax vs M/S.National College Council on 26 February, 2021
Tax Case Appeal Nos.255 to 257 of 2011
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED : 26.02.2021
CORAM
THE HON'BLE MR. JUSTICE M. DURAISWAMY
AND
THE HON'BLE MRS. JUSTICE T.V. THAMILSELVI
Tax Case Appeal Nos.343 to 345 & 347 of 2014
Commissioner of Income Tax,
Trichy. ... Appellant in all 4 TCAs
Vs.
M/s.National College Council,
Teppakulam,
Tiruchirapalli – 620 002. ... Respondent in all 4 TCAs
Tax Case Appeals filed under Section 260A of the Income Tax Act,
1961 against the order of the Income Tax Appellate Tribunal, Chennai
"B" Bench, dated 06.08.2013, passed in I.T.A.Nos.1157 to 1159 &
1161/Mds/2013 for the assessment year 2003-04, 2004-05, 2007-08 and
2009-10.
For Appellant : Mr.J.Narayanasamy,
(in all 4 TCAs) Senior Standing Counsel
For Respondent : Mr.V.S.Jayakumar
(in all 4 TCAs)
COMMON JUDGMENT
(Delivered by M. DURAISWAMY, J.)
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Tax Case Appeal Nos.255 to 257 of 2011
Aggrieved by the orders passed by the Income Tax Appellate
Tribunal in I.T.A.Nos.1157 to 1159 & 1161/Mds/2013, the Revenue has
filed the above appeals.
2.The Assessing Officer disallowed the depreciation on the capital
assets claimed by the assessee on the ground that the entire cost of the
asset has been considered as application of income in the year of
purchase of asset and the assessee is not engaged in any business and
Section 32 is not applicable to the entities claiming exemption under
Section 10 & 11 of the Act. The Assessing Officer, relying on the
decision of the Hon'be Supreme Court in the case of Escorts Limited
reported in 199 ITR 43 (SC), held that allowing depreciation on the same
asset will not amount to doubt deduction. Aggrieved by the assessment
order, the assessee filed appeals before the CIT (Appeals), who allowed
the appeals in favour of the assessee holding that the assessee is entitled
for depreciation claim on the assets. Aggrieved by the order of CIT
(Appeals), the Revenue filed appeals before the Income Tax Appellate
Tribunal and the Tribunal, by following the assessee's own case for the
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Tax Case Appeal Nos.255 to 257 of 2011
earlier year in I.T.A.Nos.402 & 403/Mds/2010, allowed the appeals
holding that the assessee can claim depreciation. Aggrieved over the
orders passed by the Income Tax Appellate Tribunal, the Revenue has
filed the above appeals.
3.The above appeals were admitted on the following substantial
question of law :
"Whether on facts and in the circumstances of the
case, the Income Tax Appellate Tribunal was right in
holding that the assessee is entitled to claim depreciation on
the assets, in the form of, application of income, even
though the cost of purchase of asset was treated as
application of income under Section 11?”
4.When the appeals were taken up for hearing,
Mr.J.Narayanasamy, learned Senior Standing Counsel appearing for the
appellant – Revenue in all the appeals, fairly submitted that the
substantial question of law, which has been framed in these appeals, have
been answered against the Revenue by the Hon'ble Supreme Court in
CIT Vs. Rajasthan and Gujarati Charitable Foundation reported in
[2018] 402 ITR 441 (SC). Further, the learned Senior Standing Counsel
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Tax Case Appeal Nos.255 to 257 of 2011
submitted that following the decision of the Hon'ble Supreme Court, the
Hon'ble Division Bench of this Court, by judgment dated 26.08.2019,
made in T.C.A.Nos.680 & 681 of 2011 [Commissioner of Income Tax
– I, Tiruchirapalli Vs. M/s.National College Council, P.B.No.369,
Chatram Bus Stand, Teppakulam, Tiruchirapalli – 620 002] dismissed
the appeals and answered the substantial questions of law against the
Revenue. The appeals in T.C.A.Nos.680 & 681 of 2011 relates to the
very same assessee. Hence, following the judgment of the Hon'ble
Supreme Court reported in [2018] 402 ITR 441 (SC) and the judgment
of the Hon'ble Division Bench of this Court made in T.C.A.Nos.680 &
681 of 2011, the substantial question of law is answered against the
Revenue and the appeals are dismissed. No costs.
[M.D., J.] [T.V.T.S.,
J.]
Index : Yes / No 26.02.2021
Internet : Yes
va
To
1.The Income Tax Appellate Tribunal,
Chennai "B" Bench
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Tax Case Appeal Nos.255 to 257 of 2011
M. DURAISWAMY, J.
and
T.V. THAMILSELVI, J.
va
Tax Case Appeal Nos.343 to 345 & 347 of 2014
26.02.2021
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