Commissioner Of Income Tax v. M/S Swami Satchidanandam
In the High Court of Judicature at Madras Dated : 02.1.2019 Coram :
The Honourable Mr.Justice T.S.SIVAGNANAM and The Honourable Mr.Justice N.SATHISH KUMAR Tax Case Appeal No.508 of 2014 The Commissioner of Income Tax, Coimbatore ...Appellant Vs M/s.Swami Satchidanandam Foundation, Coimbatore-6
...Respondent
APPEAL under Section 260A of the Income Tax Act, 1961 against the order dated 28.1.2013 in ITA No.1956/Mds/2012 on the file of the Income Tax Appellate Tribunal Madras 'A' Bench for the assessment year 2009-10. Appeal against the order of the Commissioner of Income Tax (appeals) I, Coimbatore dated 6.8.12 in ITA 135/11-12 for the Assessment year 2009-10 against the order of the Additional Commissioner of Income Tax Range I 63, Race Course Road, Coimbatore -18 for PAN No.AAATSS138F. For Appellant :
Mr.J.Narayanasamy, SSC For Respondent :
Mr.S.Sridhar Judgment was delivered by T.S.SIVAGNANAM,J Heard the learned Standing Counsel for the appellant.
2. This appeal by the Revenue challenges the order passed by the Income Tax Appellate Tribunal, which decided the issue in favour of the assessee. The appeal was admitted on 01.9.2014 on the following substantial questions of law :
"i. Whether, in law and in the facts and circumstances of the case, the Income Tax Appellate Tribunal was right in holding that depreciation is allowable as application of income on charitable objects ?
ii. 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 cost of purchase of asset was treated as application of income under Section 11 ? and iii. Whether, in law and in the facts and circumstances of the case, the Income Tax Appellate Tribunal was right in holding that allowing the depreciation claim of the assessee would not result in double deduction, though the entire cost of the depreciation assets have already been allowed as application of income towards objects of the trust ?"
3. The Revenue seeks to withdraw this appeal on account of low tax effect in terms of Circular No.3 of 2018 dated 11.7.2018 issued by the Central Board of Direct Taxes.
4. In the light of the above, the appeal is dismissed as withdrawn and the substantial questions of law framed are left open. In the event the tax effect is above the threshold limit fixed in the said circular under exceptional clauses mentioned in the circular, liberty is granted to the Revenue to make a mention to this Court to restore the appeal to be heard and decided on merits. No costs.
Sd/- Assistant Registrar(CS-III) //True copy// Sub Assistant Registrar RS To 1.The Income Tax Appellate Tribunal, Madras 'A' Bench, Chennai.
2. The Commissioner of Income Tax, (Appeals) I, Coimbatore.
3. The Additional Commissioner of Income Tax, Range I, 63 Race Course Road, Coimbatore -18.
+1cc to Mr.J.Narayanaswamy, Advocate SR.No.147 +1cc to Mr.S.Sridhar, Advocate SR.No.365 TCA.No.508 of 2014 KS(CO) GMY(01/02/2019)