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2017 (3) TMI 1235 - AT - Income TaxDeduction for depreciation from the rental income of loader - Held that:- In considered opinion under the Income tax Act, income of the assessee is chargeable to tax and not the gross receipts. The gross receipts from loader during the year was ₹ 4,18,711/- as evidenced by the copy of Profit and Loss account filed before me. Hence the assessee is entitled to deduction of depreciation of ₹ 9,94,050/- from the rent of loader of ₹ 4,18,711/-. After deducting rent of loader of ₹ 4,18,711/- from the depreciation of ₹ 9,94,050/-, there will remain unabsorbed depreciation of ₹ 5,75,339/- . The same is deductible u/s.70 of Income tax Act, from the income determined from gross bills at ₹ 3,39,265/- and the balance amount of depreciation is adjustable against income from other sources of ₹ 5,92,565/- as per provisions of section 70(1) of the Act. Hence, set aside the orders of lower authorities and direct the Assessing Officer to allow deduction for depreciation of ₹ 9,94,050/- from the rental income of loader to the assessee and thereafter determine the income of the assessee as per law. Thus, the grounds of appeal of the assessee are partly allowed.
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