Generate professional replies, appeals, opinions to Show Cause Notices, assessment orders, audit objections, and other legal communications using TaxTMI's AI Drafter.
ITAT Chennai denies exemption u/s 11, clarifies asset depreciation treatment. Assessee's cross objection dismissed. The ITAT Chennai allowed the Revenue's appeal, denying exemption u/s 11 to the assessee and clarifying the treatment of depreciation on assets. The cross ...
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
The ITAT Chennai allowed the Revenue's appeal, denying exemption u/s 11 to the assessee and clarifying the treatment of depreciation on assets. The cross objection by the assessee regarding maintainability and depreciation was dismissed. The judgment was pronounced on 6th Nov., 2015 in Chennai.
Issues Involved: - Appeal filed by Revenue and cross objection filed by assessee against order of Commissioner of Income-tax(Appeals) dated 28.2.2014. - Revenue's grounds: CIT(A) ignored relevant facts, assessee's activities not charitable, entitlement for exemption u/s 11, depreciation on assets. - Cross objection by assessee regarding maintainability of sec.260A of the Act.
Analysis:
Issue 1: Revenue's Grounds - Revenue contended that CIT(A) ignored relevant facts and failed to apply provisos to Section 2(15) of the Income Tax Act. Claimed assessee's activities are not charitable but commercial. - CIT(A) held that assessee's activities fall under "general public utility" and are eligible for exemption u/s 11. Referred to specific objectives of the trust and the impact of its activities on the toiling masses. - Regarding depreciation, CIT(A) allowed the claim as it is essential for calculating income and applying it for charitable purposes. Directed AO to accept returned income and allow depreciation based on various High Court decisions. - Revenue's appeal allowed by ITAT Chennai, stating that the assessee is not engaged in charitable activities as per trust deed. Clarified that depreciation should be granted based on written down value of assets.
Issue 2: Cross Objection by Assessee - Assessee raised issue on maintainability of sec.260A of the Act. ITAT Chennai dismissed the cross objection, stating that the Revenue's appeal was proper and rectified any mistakes pointed out by the assessee.
Conclusion: - ITAT Chennai allowed Revenue's appeal, denying exemption u/s 11 to the assessee and clarifying the treatment of depreciation on assets. Dismissed the cross objection by the assessee regarding maintainability and depreciation. The judgment was pronounced on 6th Nov., 2015 in Chennai.
Full Summary is available for active users!
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
AI Drafter - (New and Powerful) ✕
Generate professional replies, appeals, opinions to Show Cause Notices, assessment orders, audit objections, and other legal communications using TaxTMI's AI Drafter. 
of 
TaxTMI 
