2026 (7) TMI 1414

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....f assessment year 2014-15 against the order dated 22.12.2025 passed by the learned Income Tax Appellate Tribunal whereby the appeal filed by the Revenue has been dismissed and the order passed by the Commissioner of Income Tax (Appeal) (in short "CIT(A)") was upheld. Facts of the case, in short, are as under :- 2. The respondent-assessee is a Society incorporated under the Ministry of Human Resources & Development (MHRD) to provide training to technical teachers/faculties. The respondent-assessee filed a return under Section 139 of the Act on 31.03.2015 declaring total loss of Rs. 5,72,14,721/-. Vide order dated 04.11.2016, the original assessment was completed under Section 143(3) of the Act, assessing total loss of Rs. 5,72,14,721/-....

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....ceedings under Section 271(1)(c) of the Act. In compliance of the aforesaid order, a penalty of Rs. 2 Crore under Section 271(1)(c) of the Act was levied on assessee vide order dated 28.02.2020 on account of furnishing inaccurate particulars of income. 5. Being aggrieved by the aforesaid order of penalty dated 28.02.2020, the assessee approached the Commissioner of Income Tax (Appeal) by way of filing Appeal No.CIT(A), Bhopal-1/100332020-21 on the ground that it is a charitable trust registered under Section 12A of the Act; hence, entitled for exemption under Section 10(23C) of the Act. The learned CIT(A) held that the appellant has inadvertently claimed the depreciation on the assets which have already been allowed. The depreciation was....

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....its that the orders passed by the CIT(A) and ITAT suffers from perversity on the ground that the assessee has accepted the disallowance towards captioned claim and holding that disallowing of expenses would not alter the status of payment of tax as assessee is exempted under Section Section 10(23C)(iiiab) of the Act and there is no intention or mens rea in part of the assessee to make incorrect claim. The intention or mens rea cannot be denied since claiming expenses (depreciation expenses) when no expenses have been incurred in light of the admitted reimbursement is indeed quite blatant when the assessee has expert assistance of Accountants and Auditors. Conclusion. 8. Since the assets of the assessee society were acquired directly o....

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....ion under Section 10(23C)(iiiab) of the Act. Originally, the Assessing Officer allowed the deduction of depreciation, but, subsequently, due to the observation by Pr. CIT in the revision order under Section 263 of the Act, the assessment order was reframed by the Assessing Officer, whereas he disallowed the depreciation. 10. The respondent-assessee is a Society formed by the Ministry of Human Resources & Development for providing training to the technical teachers/faculties. It is under direct control of the MHRD. The respondent society prepared the book of accounts as per the prescribed financial regulations, and they are subjected to audit by CAG. Thus, the depreciation accounted in the book of accounts was claimed as a deduction in th....