Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2019 (4) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (4) TMI 553 - AT - Income TaxDepreciation claim of assessee trust - assessee is registered under section 12A - double deduction - HELD THAT:- As decided in assessee's own case [2017 (9) TMI 965 - ITAT AHMEDABAD] we find that this issue is no more res integra as hon’ble jurisdictional high court’s decision in CIT vs. Seth Manilal Ranchhodlal Bhavan Trust [1992 (2) TMI 51 - GUJARAT High Court]. Benefit of section 11 & 12 for the rent paid to the trustees - contravention to the provisions of section 13(1)(c)(ii) - HELD THAT:- As decided in assessee's own case [2017 (9) TMI 965 - ITAT AHMEDABAD] CIT-A taking into account an approved valuer’s report as well as all corresponding documents indicating all relevant particulars indicating the assessee to be utilizing vacant space alongwith land and building whilst concluding that the payments in question cannot be held as excessive ones. It has further come on record that the assessee had been paying similar rents in preceding assessment years as well. It places on record assessment order(s) pertaining to earlier assessment years not showing any such disallowance. The Revenue fails to rebut all these findings with the help of any cogent evidence on record. Addition on account of capital expenditure - amount utilized for Requiring Fixed assets - HELD THAT:- As decided in assessee's own case [2017 (9) TMI 965 - ITAT AHMEDABAD] higher authorities that the amount utilized for Requiring Fixed assets is allowable as application of income as per sec. 11(1)(a) of the Act. There are two separate issues one is pertaining to application of income and other is computation of income. In application of income of trust, amount applied for acquiring fixed assets is considered as eligible, therefore this ground of appeal is allowed and AO is directed to allow amount of investment in the fixed assets as part of application of income as per sec. 11(1)(a) - Revenue appeal dismissed.
|