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2013 (2) TMI 755 - AT - Income TaxWhether loan taken was utilized for acquiring fixed can be considered as application of income u/s 11 - Can depreciation be considered as application of income - can set off of excess expenditure of earlier years be allowed when there is no such claim in the return - Held that:- Acquisition of fixed assets was only for the purpose of Trust - Loan raised is never income derived from the property held under trust - Utilization of such loan will also be not an application of income derived from property held under trust - Contention of the assessee that once loan had gone into common kitty, a presumption has to be taken that money expended for acquiring capital asset had first gone out of own funds and then out of loan funds, cannot be accepted - Decided against the assessee Held that:- While computing the income of the Trust, commercial principle had to be followed and depreciation had to be allowed - depreciation has to be considered as an application of income derived from property held under Trust - Decided in favor of assessee Held that:- Trust was entitled to set off the amount of excess application of income of prior years against deficiency of current year - claim of the assessee ought have been entertained if such claim was found factually correct
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