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2020 (1) TMI 1083 - AT - Income TaxExemption u/s 11 - Deduction u/s. 24 against income from house property - treatment of capital expenditure as application of income - HELD THAT:- Extrapolation made by learned CIT(A) that the Trust shall not be entitled for deduction u/s. 24 of the Act in computation of income from house property is totally unsustainable in law. As a matter of fact, the proposition that income has to be computed as per provisions of the Act even in the case of Trust was approved in the case of CIT v. Institute of Banking Personnel Selection (IBPS) [2003 (7) TMI 52 - BOMBAY HIGH COURT] wherein capital expenditure for acquiring asset which was already shown as application of income was held to be eligible for depreciation which was denied by the Revenue. In this view of the matter in our considered opinion the assessee is entitled to deduction u/s. 24. Following the precedent as above, we direct accordingly. Since we are deciding the issue following the Hon'ble Bombay High Court decision as above, other decisions relied upon by the Revenue are not applicable. Disallowance of claim of accumulation of unutilized funds - We find that the issue in dispute on this issue is unutilized portion of fund of ₹ 18,50,000/- for A.Y. 2008-09. The same has been held to be taxable by the Assessing Officer u/s. 11(3) of the Act. This aspect has been upheld by learned CIT(A) on the ground that any specified unavoidable circumstances is not on record. This he held so by observing that if any specified period expires then it is the option to assessee to revise the purposes cannot be exercised. He held that while perusing the document filed by the assessee, he did not find anything contrary to the observation of the AO Therefore in the absence of any specified unavoidable circumstances on record to modify purpose, he declined to interfere with the finding of the Assessing Officer. In our considered opinion it is nowhere emanating as to whether the learned CIT(A) has confronted this aspect or not. In our considered opinion interest of justice demands this issue may be remitted to the file of the Assessing Officer. The Assessing Officer is directed to consider the issue afresh after giving the assessee opportunity of being heard.
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