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2015 (6) TMI 684 - HC - Income TaxDisallowance u/s 14A read with Rule 8D - Held that:- Question No.(i) stands concluded in favour of the respondent-assessee and against the appellant/revenue by the decision of this Court in M/s Godrej & Boyce Mfg. Co. Ltd. Vs. DCIT reported in [2010 (8) TMI 77 - BOMBAY HIGH COURT] - Decided in favour of assessee. Denial of exclusion of income exempt u/s 10(35) from the total income of the assessee for the purpose of calculating - whether 85% of the income had been applied for the objects of the trust or not as per the provisions of section 11(1)(a) - Tribunal in setting aside the order of the CIT(A) confirming the order of the AO denying exclusion - Held that:- The order passed by the CIT (Appeals) has not dealt with the decisions cited by the respondent-assessee at the time of hearing before it in CIT (Appeals) Vs. Silk & Art Silk Mills Association Ltd. (1989 (10) TMI 35 - BOMBAY High Court) and in His Holiness Silasri Kasivasi Muthukumaraswami Thambiran & Ors. Vs. Agricultural ITO reported in (1977 (11) TMI 57 - MADRAS High Court ) and merely stating that the same are not relevant does not meet the requirement of natural justice viz. An order supported by reasons. In the above view of the matter, the impugned order of the Tribunal setting aside order of CIT (Appeals) and restoring it to him for fresh consideration cannot be found fault with. Disallowance of depreciation - Tribunal allowed claim - Held that:- Amount spent on acquiring assets are taken as application of income for the purposes of Section 11 of the Act and the depreciation claimed thereafter on the same amount i.e. the value of fixed assets during the subsequent years is being granted on the user of the same. Accordingly, in view of the decision of this Court in Institute of Banking (2003 (7) TMI 52 - BOMBAY High Court) and Ville Parle Kelavani Mandal (2015 (5) TMI 220 - BOMBAY HIGH COURT ) rendered on 23 March 2015 and an earlier decision in The Watch Tower Bible and Tract Society of India [2015 (1) TMI 480 - BOMBAY HIGH COURT], the Question stands concluded in favour of the respondent/assessee and against the revenue Disallowance of carry forward of excess application of income of the earlier years against the income of the year under consideration - ITAT remanded issue - Held that:- The Tribunal had restored the issue for the earlier years to the Assessing Officer to decide the matter afresh and to determine the application of income in terms of Section 11 of the Act. Consequently, the Tribunal set for the subject assessment year aside the order of CIT (Appeals) and restored the issue to the Assessing Officer to consider the same afresh in the light of the decision taken by the Assessing Officer in respect of the orders passed for the earlier assessment years. Thus, the question as framed by the revenue does not give rise to any substantial question of law. - Decided against revenue.
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