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2016 (11) TMI 662 - ITAT AHMEDABADAdoption of price for sale consideration - adoption of sale rate for land - Held that:- In view of the provisions of section 50C of the Act, we are of the considered view that in the given facts and circumstances of the case wherein assessee has shown sale consideration @ ₹ 7,301/- per sq.m., registered valuer valued it at ₹ 5,800/- per sq.m., ld. Assessing Officer estimated rate at ₹ 10,000/- per sq.m. no report from the DVO and jantri price of ₹ 8,000/- per sq.m., we are of the view that in order to meet the ends of justice, it will be justified to adopt the jantri price of ₹ 8,000/- per sq.m. for the sale consideration towards the sale of 33817 sq.m. of land. Not allowing set off of the unabsorbed business loss of earlier year against the income from other sources of current year confirmed - in view of the clear provisions of section 72(1) of the I.T. Act, it is held that the claim of the assessee in setting off business loss of earlier years against current year’s income from other sources is illegal and not allowable as per law. Allowability of deduction u/s 80P - Held that:- there is loss during the year from the business activities of the society which includes all types of income relating to marketing of agricultural produce grown by its members as well as income from letting out godown/warehouse, assessee is not eligible for any deduction u/s 80P(2)(iii) and 80P(2)(e) of the Act for the lack of positive income Deduction of claim of assessee as unabsorbed depreciation and also claim of the current depreciation by applying the provisions of section 14A for the purpose of computing total income - Held that:- We observe that depreciation is claimed as per the provisions of section 32 of the Act and sub-section (2) of section 32 allows the assessee to claim unabsorbed depreciation of earlier years. Further in order to compute the business income of the assessee society the computation of income has to pass through the provisions of section 32 of the Act so as to arrive at the correct business income. Sec. 14A of the Act refers to income which are not included in total income i.e. exempt income dividend, for example tax free interest etc. Whereas in the case of assessee deduction has to be claimed u/s 80P of the Act. Further as per section 80P(2)(a)(iii) of the Act, the deduction is allowable for the amount of profits and gain of business attributable to marketing of agricultural produce grown by the members of the society and in order to calculate profits and gains of business assessee needs to calculate business income after claiming depreciation as per provisions of sec. 32 of the Act. Therefore, ld. CIT(A) has rightly allowed the claim u/s 32 of the Act towards deduction of unabsorbed depreciation of earlier years and deduction of current year depreciation and therefore, we find no reason to interfere with the order of ld. CIT(A)
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