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2017 Supreme(SC) 1341

A.K.SIKRI, ASHOK BHUSHAN
Commissioner of Income Tax-III, Pune – Appellant
Versus
Rajasthan & Gujarati Charitable Foundation Poona – Respondent


Advocates:
Advocate Appeared:
Ms. Pinky Anand, Mr. Yashank Adhyaru, Mr. Arijit Prasad, Mr. Rajiv Nanda, Ms. Snidha Mehra, Mr. Rupesh Kumar, Mr. D.L. Chidanand, Ms. Gargi Khanna, Ms. Sadhna Sandhu, Ms. Kriti Dua, Mr. Hemant Arya, Mrs. Anil Katiyar, Mr. Shashi M. Kapila, Mr. Pravesh Sharma, Mr. Siddharth Kapila, Ms. Malvika Kapila, Mr. Sushil Kumar, Mr. Vikas Mehta, Mr. Amit Anand Tiwari, Ms. Vishakha, Mr. Shadan Farasat, Ms. Rudrakshi Deo, Mr. Ved Jain, Mr. Pranjal Srivastava, Ms. Praveena Gautam, Mr. Jitesh Prakash Gupta, Ms. Anusueya, Mr. Dhanish Kumar, Mr. T.R.B. Sivakumar, Mr. Senthil Jagadeesan, Ms. Shruti Iyer, Ms. Sonakshi Malhan, Ms. Suriti Chowdhary, Mr. Rameshwar Prasad Goyal, Mr. Salil Agarwal, Mr. Madhur Agarwal, Mr. Bhargava V. Desai, Mr. Akshat Malpani, Mr. Vikas Mehta, Mr. Shadan Farasat, Mr. Jatin Zaveri, Mr. H.D. Thanvi, Ms. Preeti Thanvi, Mr. Rishi Matoliya, Mr. S.C. Tiwari, Mr. Jatin Zaveri, Mr. Neel Kamal Mishra, Mr. B.P. Sarangi, Mr. S. Sarfaraz Karim, Mr. Simanta Kumar, Mr. Ambar Qamaruddin, Mr. Roni O. John, Ms. Vanita Bhargava, Mr. Ajay Bhargava, Ms. Abhisaar Bairagi, M/S. Khaitan & Co., Mr. Gagan Gupta, Mr. Prateek K. Chadha, Ms. Mihira Sood, Mr. Vinodh Kanna B., Ms. Arti Singh, Ms. Pooja Singh, Mr. Parag P. Tripathi, Mr. A.V. Rangam, Mr. Buddy A. Ranganadhan, Ms. Mishika Bajpai, Mr. Ajay Vohra, Ms. Kavita Jha, Mr. Bhuwan Dhoopar, Mr. Sanjay Bansal, Mr. Aljo K. Joseph, Ms. Shelna K.

ORDER :

These are the petitions and appeals filed by the Income Tax Department against the orders passed by various High Courts granting benefit of depreciation on the assets acquired by the respondents-assessees. It is a matter of record that all the assessees are charitable institutions registered under Section 12A of the Income Tax Act (hereinafter referred to as 'Act'). For this reason, in the previous year to the year with which we are concerned and in which year the depreciation was claimed, the entire expenditure incurred for acquisition of capital assets was treated as application of income for charitable puruposes under Section 11(1)(a) of the Act. The view taken by the Assessing Officer in disallowing the depreciation which was claimed under Section 32 of the Act was that once the capital expenditure is treated as application of income for charitable purposes, the assessees had virtually enjoyed a 100 per cent write off of the cost of assets and, therefore, the grant of depreciation would amount to giving double benefit to the assessee. Though it appears that in most of these cases, the CIT (Appeals) had affirmed the view, but the ITAT reversed the same and the High Courts







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