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2018 (10) TMI 1919 - AT - Income TaxAssessment of trust - payment of rent to the trustee of the Assessee and invoking of provisions of Section 13(1) - HELD THAT:- As decided in own case [2016 (12) TMI 1567 - ITAT PUNE] in the instant case the assessee had filed certain details before the CIT(A) for calculation of fair rent of the property which has been ignored by him. Under these circumstances and in the interest of justice, we deem it proper to restore this issue to the file of the CIT(A) with a direction to adjudicate this issue in the light of facts and submissions made and the additional evidences filed before him. Since the issue which is raised is identical to the issue in A.Y.2006- 07, we, therefore, remit the issue back to the file of CIT(A) to decide the same in the light of our direction in A.Y.2006-07. Acquisition of shares which were held to be in contravention of provisions of Section 13(1)(d) of the Act - HELD THAT:- As decided in own case [2016 (12) TMI 1567 - ITAT PUNE] there cannot be wholesale denial of exemption of the entire income of the assessee and at the most dividend on shares would lose the benefit of exemption. In view of the above, we restore the issue to the file of the Assessing Officer with a direction to find out the dividend income, if any, out of these shares including that of value of bonus shares that were received/obtained during the year and bring the same to tax. We hold and direct accordingly. Investment in share in Co-operative Society are covered under section 13(1)(d) - HELD THAT:- Provisions of section 13(1)(d) cannot be invoked vis-à-vis investment in share in Co-operative Society. Since the assessee has not violated the provisions of section 13(1)(d) of the Act, the assessee cannot be denied the benefit of section 11 of the Act. Following the same parity of reasoning as held while deciding the assessee’s appeal in A.Y.2006-07 [2016 (12) TMI 1567 - ITAT PUNE] we uphold the order of CIT(A) and thus, the ground of appeal raised by Revenue is dismissed. Disallowance of expenditure for it being of prior period - Addition on the basis of the report of Special Auditor appointed under Sec.142(2A) - as contented expenditure related to earlier period but since the liability for the expenses crystallized during the year, the expenses were allowable - HELD THAT:- We find that identical issue arose in Assessee’s case in AY 2006-07. The Coordinate Bench of Tribunal, by following the decision of Nagri Mills [1957 (9) TMI 30 - BOMBAY HIGH COURT] and Home & Life Solutions (India) Ltd [2013 (10) TMI 973 - ITAT AHMEDABAD] remitted the matter back to the AO - we therefore for the similar reasoning as given by the co-ordinate Bench of the Tribunal while deciding the Assessee’s appeal in AY 2006-07 and with similar directions set aside the issue to the file of AO. Thus the ground of Assessee is allowed for statistical purposes. Amounts paid to various trusts in alleged contravention of provisions of Section 13(1)(c) - HELD THAT:- The Revenue has filed appeal against the decision of CIT(A) on the issue which is decided against the assessee. Consequently, assessee has not agitated the said decision of CIT(A). Disallowance in respect to amounts written off - CIT(A) has noted that the AO has not discussed the issue at all on merits and in the absence of any discussion on the nature of amounts, he deleted the addition - HELD THAT:- Before us, Ld DR has not pointed out any fallacy in the findings of CIT(A). In such circumstances, we find no reason to interfere with the order of CIT(A) in allowing write off of preoperative expenses and thus, the ground No.6 of Revenue is dismissed.
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