Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2016 (4) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2016 (4) TMI 76 - AT - Income TaxRevision u/s 263 - denial of benefit U/s 11 and 12 and not allowing depreciation - Held that:- The scrutiny assessment has been completed by the Assessing Officer on 31/12/2012. The ld Assessing Officer issued detailed questionnaire on 17/10/2012, the assessee furnished requisite details/information/books of account etc. before him. The ld Assessing Officer held that the registration w.e.f. 23/08/2011 U/s 12AA have been granted by the ld CIT, Alwar. The society was working as per its byelaws and carried out charitable activity. All the income of the society was applied for fulfillment of the object of the society. The educational institutions are existing solely for educational purposes and not for the purpose of profit. The aggregate annual receipts of the society during the year under consideration was ₹ 93,70,725/-, which is below ₹ 1 crore. All the annual receipts of the samiti is exempted U/s 10(23C)(iiiad) of the Act. The ld Assessing Officer accepted the assessee’s returned income by order dated 31/12/2012. The ld Assessing Officer issued query letter on 17/10/2012 on both the issues in item No. 3,4 and 8, which was replied by the assessee vide letter dated 19/11/2012 at item No. 3 and 8. Thus, the Assessing Officer made detailed enquiry on both the issues and no adverse inference had been drawn by him. Further both the issues i.e. aggregate annual receipts and depreciation are also covered in favour of the assessee as various ITATs as well as Hon'ble High Courts have held that other receipts, which are not directly related with the receipts of the institution/trust, are not part of aggregate annual receipts. On depreciation also, various ITATs and Hon'ble High Courts have held that the income of the Trust is to be calculated as per Act. The depreciation is allowable even the assessee had applied its receipts against the assets which seems to be double deduction to the Assessing Officer but various courts has decided that the depreciation on assets is allowable. Now the law has been amended on this issue but which is operative prospectively. The case laws relied by the assessee are squarely applicable. We find that the Assessing Officer has formed one of the view but the ld CIT(Exemption) has formed another view on same facts and circumstances, therefore, change of opinion is not permissible under the law. Accordingly, we set aside the order of the ld CIT(Exemption) passed U/s 263 of the Act. - Decided in favour of assessee
|