TaxTMI Login
Just a moment...
Press 'Enter' to add multiple search terms. Rules for Better Search
When case Id is present, search is done only for this
of 
of 
No Folders have been created
Are you sure you want to delete "My most important" ?
NOTE:
of of 
All Case Laws
of of All Case Laws
Note
Bookmark
Share
Don't have an account? Register Here
of <h1>Tribunal Upholds Decision on Charitable Expenditure Double Deduction</h1> <h3>The Deputy Commissioner of Income-tax Versus M/s. Maamallan Educational Trust</h3> The Deputy Commissioner of Income-tax Versus M/s. Maamallan Educational Trust - TMI Issues:Appeal by Revenue against CIT(A) order regarding treatment of capital expenditure as application of income leading to double deduction.Analysis:The appeal pertains to the assessment year 2009-10 where the Revenue challenges the order of the Commissioner of Income-tax(Appeals) at Chennai. The sole ground raised by the Revenue is related to the treatment of capital expenditure of `57,44,426 as application of income, resulting in alleged double deduction. The Revenue contends that allowing further depreciation on this amount leads to incorrect profit calculation and challenges the method adopted by the CIT(A).The Income-tax Appellate Tribunal, 'B' Bench, Chennai, had previously considered a similar issue in the assessee's case for the assessment years 2006-07 and 2008-09. In a decision dated 14.12.2012, the Tribunal upheld the CIT(A)'s direction, treating depreciation as application of funds for charitable purposes. The Tribunal relied on various legal precedents to support its decision, including the judgments in DIT v. Vishwa Jagriti Mission, CIT v. Market Committee, Pipli, and CIT v. Society of Sisters of St. Anni. Additionally, the Tribunal cited the Supreme Court's ruling in CIT v. Vegetable Products Ltd., emphasizing the adoption of views favorable to the assessee when multiple interpretations exist.Based on the legal pronouncements and precedents, the Tribunal affirmed the order of the CIT(A) and dismissed the Revenue's appeal. The judgment was pronounced in open court on April 22, 2013, in Chennai. The decision highlights the importance of interpreting tax laws in a manner that benefits the assessee when faced with differing views on a particular issue.
TaxTMI 