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2014 (11) TMI 976 - AT - Income TaxNature of income - interest on deposit, interest on staff loan, interest on Government Securities, service charges for handling UNDP programme, miscellaneous income, profit on sale of fixed assets, difference in exchange, commitment fee, application fee, MNES service charges - business income OR Income from other sources - Held that:- The correct nature of the above items of income, as to whether falling under the head "Income from other sources" or "Profit and gains of business or profession", cannot be determined at our end in the light of the non-speaking order passed by the authorities below on the exact nature of such income. The Tribunal can adjudicate when some finding is returned, either way, by the authorities below in respect of such items of income. In the absence of any such finding, we are handicapped to adjudicate their nature. In our considered opinion, the ends of justice would meet adequately if the matter is sent back to the Assessing Officer for elaborating, considering and then deciding the true nature of income of the above discussed items in the light of the judgment of the hon'ble jurisdictional High Court by means of a speaking order. - Decided in favour of assesse for statistical purposes. Non-granting of exemption under section 10(23G) of the Act in respect of the abovereferred items of income - Held that:- Only when the correct nature of income is determined as to whether it is "income from other sources" or "business income", that the position regarding the allowability or otherwise of exemption under section 10(23G) can be ascertained. We, therefore, direct the Assessing Officer to decide the question of exemption under section 10(23G) in respect of the above items of income, after first ascertaining the correct nature of income as discussed above. Disallowance of depreciation - CIT(A) allowed the claim - Held that:- It has not been denied by the Assessing Officer that the assessee exercised dominion over such property having right to occupy and use the same. In such circumstances, the assessee shall be treated as the owner of such properties entitled to claim of depreciation. In so far as the second objection of the Assessing Officer about the claiming of depreciation on the cost of land is concerned, we agree in principle that there can be no question of allowing depreciation on the cost of land. The learned authorised representative contended that the value of the asset under this block does not include the cost of land. In our considered opinion, it would be in the fitness of things, if the impugned order on this issue is set aside and the matter is sent back to the Assessing Officer for identifying the cost of land, if any, included in the amount on which depreciation has been claimed. We order accordingly and direct the Assessing Officer to refuse depreciation on the cost of land, if any, included in such gross value on which depreciation was claimed by the assesse - Decided partly in favour of revenue.
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