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2015 (11) TMI 997 - AT - Income TaxDisallowance of depreciation on tenancy rights - Held that:- Since the Tribunal has consistently decided this issue against the assessee over the years and none of the orders of the Tribunal has been shown to have been either reversed or stayed on appeal, respectfully following the said earlier Tribunal orders, this issue is decided against the assessee for the year under consideration confirming the disallowance made by the AO on account of assessee’s claim for depreciation on tenancy rights - Decided against assessee. Addition of payment (remuneration) made to a retired partner - assessee contended that AO’s observation to the effect that the clause of the partnership deed creating liability to pay certain amount to the retiring partner is “defeating the intention of the legislature” and thus, the clause supersedes the provisions of the Income–tax Act itself, is not only whimsical, but also fanciful; and that there is no basis for this wide sweeping, but wrong observation. - Held that:- Apropos the applicability or otherwise of section 40(b) of the Act to the facts of the year under consideration, it cannot be disputed that the amount in question is not at all income of the firm, having been diverted by the overriding title of the charge stipulated by the relevant clauses of the partnership deed. - Decided in favor of assessee. Disallowance made u/s 14A read with Rule 8D - Held that:- The assessee’s argument of non-applicability of Rule 8D of the Rules to the year under consideration notwithstanding, it cannot be gain-said that the AO has reasonably calculated the disallowance. Finding no error therein, the action of the ld. CIT(A) in confirming this disallowance is upheld.- Decided against assessee. Addition being payment made to the legal heirs of a deceased partner, Sh. Anand Bhatt - Held that:- In the present case, the partnership deed nowhere stipulated that the amount to be paid was to be paid by way of the price of the share of the outgoing partner in the partnership. This is the material point of difference between the facts herein and those attending “V.G. Bhuta” (1993 (3) TMI 79 - BOMBAY High Court). The Ld. CIT(A) correctly confirmed the addition. - Decided against assessee.
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